How real options and ecological resilience thinking can assist in environmental risk management

Research output: Journal contributionsJournal articlesResearchpeer-review

Standard

How real options and ecological resilience thinking can assist in environmental risk management. / Whitten, S.M.; Hertzler, G.; Strunz, Sebastian.
In: Journal of Risk Research, Vol. 15, No. 3, 01.03.2012, p. 331-346.

Research output: Journal contributionsJournal articlesResearchpeer-review

Harvard

APA

Vancouver

Whitten SM, Hertzler G, Strunz S. How real options and ecological resilience thinking can assist in environmental risk management. Journal of Risk Research. 2012 Mar 1;15(3):331-346. doi: 10.1080/13669877.2011.634525

Bibtex

@article{190f437622bf492f8cab815b45b0fd96,
title = "How real options and ecological resilience thinking can assist in environmental risk management",
abstract = "In this paper, we describe how real option techniques and resilience thinking can be integrated to better understand and inform decision-making around environmental risks within complex systems. Resilience thinking offers a promising framework for framing environmental risks posed through the non-linear responses of complex systems to natural and human-induced disturbance pressures. Real options techniques offer the potential to directly model such systems including consideration of the prospect that the passage of time opens new options while closing others. The implications (cost) of risk can be described by option prices that describe the net present values generated by alternative regimes in the resilience construct, and the shadow prices of particular attributes of resilience such as the speed of return from a shock and the distance or time to transition. Examples are provided which illustrate the potential for integrated resilience and real options approaches to contribute to understanding and managing environmental risk",
keywords = "Sustainability sciences, Management & Economics, real options, resilience thinking, risk, thresholds, transitions, Uncertainty, Economics",
author = "S.M. Whitten and G. Hertzler and Sebastian Strunz",
year = "2012",
month = mar,
day = "1",
doi = "10.1080/13669877.2011.634525",
language = "English",
volume = "15",
pages = "331--346",
journal = "Journal of Risk Research",
issn = "1366-9877",
publisher = "Routledge Taylor & Francis Group",
number = "3",

}

RIS

TY - JOUR

T1 - How real options and ecological resilience thinking can assist in environmental risk management

AU - Whitten, S.M.

AU - Hertzler, G.

AU - Strunz, Sebastian

PY - 2012/3/1

Y1 - 2012/3/1

N2 - In this paper, we describe how real option techniques and resilience thinking can be integrated to better understand and inform decision-making around environmental risks within complex systems. Resilience thinking offers a promising framework for framing environmental risks posed through the non-linear responses of complex systems to natural and human-induced disturbance pressures. Real options techniques offer the potential to directly model such systems including consideration of the prospect that the passage of time opens new options while closing others. The implications (cost) of risk can be described by option prices that describe the net present values generated by alternative regimes in the resilience construct, and the shadow prices of particular attributes of resilience such as the speed of return from a shock and the distance or time to transition. Examples are provided which illustrate the potential for integrated resilience and real options approaches to contribute to understanding and managing environmental risk

AB - In this paper, we describe how real option techniques and resilience thinking can be integrated to better understand and inform decision-making around environmental risks within complex systems. Resilience thinking offers a promising framework for framing environmental risks posed through the non-linear responses of complex systems to natural and human-induced disturbance pressures. Real options techniques offer the potential to directly model such systems including consideration of the prospect that the passage of time opens new options while closing others. The implications (cost) of risk can be described by option prices that describe the net present values generated by alternative regimes in the resilience construct, and the shadow prices of particular attributes of resilience such as the speed of return from a shock and the distance or time to transition. Examples are provided which illustrate the potential for integrated resilience and real options approaches to contribute to understanding and managing environmental risk

KW - Sustainability sciences, Management & Economics

KW - real options

KW - resilience thinking

KW - risk

KW - thresholds

KW - transitions

KW - Uncertainty

KW - Economics

UR - http://www.scopus.com/inward/record.url?scp=84856843260&partnerID=8YFLogxK

U2 - 10.1080/13669877.2011.634525

DO - 10.1080/13669877.2011.634525

M3 - Journal articles

VL - 15

SP - 331

EP - 346

JO - Journal of Risk Research

JF - Journal of Risk Research

SN - 1366-9877

IS - 3

ER -

Recently viewed

Publications

  1. Investigations on microstructure and properties of Mg-Sn-Ca alloys with 3% Al additions
  2. Evaluating a web-based PPGIS for the rehabilitation of urban riparian corridors
  3. Multiscale performance of landscape metrics as indicators of species richness of plants, insects and vertebrates
  4. Mechanical behaviors of extruded Mg alloys with high Gd and Nd content
  5. Policy schemes, operational strategies and system integration of residential co-generation fuel cells.
  6. Is there an excess of significant findings in published studies of psychotherapy for depression?
  7. Organic farming affects the biological control of hemipteran pests and yields in spring barley independent of landscape complexity
  8. Assessing Trust by Disclosure in Online Social Networks
  9. Product diversification and stability of employment and sales
  10. Dynamische Modellierung der Sorption von Substanzen in einem hydrologischen Einzugsgebietsmodell anhand des Beispiels Phosphor
  11. Macroeconomic shocks and banks’ foreign assets
  12. Improving compliance with COVID-19 guidance
  13. Predicting expatriate job performance
  14. Alcohol intake can reduce gambling behavior
  15. Statistical Learning and Inference Is Impaired in the Nonclinical Continuum of Psychosis
  16. Schulbezogenes mathematisches Vorwissen von Bewerber*innen auf ein Mathematik-Lehramtsstudium
  17. Plastics in our ocean as transdisciplinary challenge
  18. Investigation On The Influence Of Remanufacturing On Production Planning And Control – A Systematic Literature Review
  19. Stock price reactions to climate science information from the Intergovernmental Panel on Climate Change
  20. Effects of elevated atmospheric CO2 concentrations on barley, sugar beet and wheat in a rotation
  21. Toward “hardened” accountability?
  22. New evidence for vegetation development and timing of Upper Middle Pleistocene interglacials in Northern Germany and tentative correlations
  23. Intermetallic phase characteristics in the Mg–Nd–Zn system
  24. Does Internet-based guided self-help for depression cause harm?
  25. Print exposure across the reading life span
  26. Reaching for the (Product) Stars
  27. Influence of cerium on stress corrosion cracking in AZ91D
  28. Elution of Monomers from Two Conventional Dental Composite Materials
  29. Effects of introspective vs. extraspective instruction in scaling of hedonic properties of flavouring ingredients by Chinese and German subjects
  30. Simulation of the quench sensitivity of the aluminum alloy 6082
  31. Generalising IRT to Discriminate Between Examinees
  32. Systematic study of the effect of non-uniform seal stiffness on the contact stress in flat-faced soft-seated spring operated pressure relief valves
  33. Accurate welding line prediction in extrusion processes
  34. Photochemistry of 2,2', 4,4', %,5'-hexabde (BDE-153) in THF and adsorbed on SiO2
  35. Cues from Facial Expressions for Emotional Interfaces
  36. Manufacture of profiles with variable cross-sections, curvatures and twistings by influencing the material flow in hot extrusion
  37. Effects of habitat heterogeneity on bird communities in forests of northeastern Germany
  38. The multipole resonance probe
  39. German multiple-product, multiple-destination exporters: Bernard-Redding-Schott under test
  40. Forestry contributed to warming of forest ecosystems in northern Germany during the extreme summers of 2018 and 2019
  41. In Situ Synchrotron Radiation Study of the Tension–Compression Asymmetry in an Extruded Mg–2Y–1Zn–1Mn Alloy
  42. Entrepreneurial Traits and Strategy in the Performance of Owner-manager Led Firms
  43. Beyond Personalization and Anonymity:
  44. The effect of hunting regimes on tree regeneration in lowland beech (Fagus sylvatica L.) forests
  45. „Willst du wirklich ,lehren‘ oder ,Lehrer werden‘?“