The economic insurance value of ecosystem resilience
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The economic insurance value of ecosystem resilience. / Baumgärtner, Stefan; Strunz, Sebastian.
Lüneburg : Institut für Volkswirtschaftslehre der Universität Lüneburg, 2009. (Working paper series in economics; No. 132).Research output: Working paper › Working papers
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RIS
TY - UNPB
T1 - The economic insurance value of ecosystem resilience
AU - Baumgärtner, Stefan
AU - Strunz, Sebastian
N1 - Literaturverz. S. 29 - 33. - Parallel als Online-Ausg. erschienen unter der Adresse http://www.uni-lueneburg.de/fb2/vwl/papers/wp_132_Upload.pdf
PY - 2009
Y1 - 2009
N2 - Ecosystem resilience, i.e. an ecosystem's ability to maintain its basic functions and controls under disturbances, is often interpreted as insurance: by decreasing the probability of future drops in the provision of ecosystem services, resilience insures risk-averse ecosystem users against potential welfare losses. Using a general and stringent definition of "insurance" and a simple ecological-economic model, we derive the economic insurance value of ecosystem resilience and study how it depends on ecosystem properties, economic context, and the ecosystem user's risk preferences. We show that (i) the insurance value of resilience is negative (positive) for low (high) levels of resilience, (ii) it increases with the level of resilience, and (iii) it is one additive component of the total economic value of resilience.
AB - Ecosystem resilience, i.e. an ecosystem's ability to maintain its basic functions and controls under disturbances, is often interpreted as insurance: by decreasing the probability of future drops in the provision of ecosystem services, resilience insures risk-averse ecosystem users against potential welfare losses. Using a general and stringent definition of "insurance" and a simple ecological-economic model, we derive the economic insurance value of ecosystem resilience and study how it depends on ecosystem properties, economic context, and the ecosystem user's risk preferences. We show that (i) the insurance value of resilience is negative (positive) for low (high) levels of resilience, (ii) it increases with the level of resilience, and (iii) it is one additive component of the total economic value of resilience.
KW - Sustainability sciences, Management & Economics
KW - ecosystem
KW - economic value
KW - insurance
KW - resilience
KW - risk
KW - risk preferences
KW - ecosystem
KW - economic value
KW - insurance
KW - resilience
KW - risk
KW - risk preferences
KW - Economics
KW - ecosystem
KW - economic value
KW - insurance
KW - resilience
KW - risk
KW - risk preferences
M3 - Working papers
T3 - Working paper series in economics
BT - The economic insurance value of ecosystem resilience
PB - Institut für Volkswirtschaftslehre der Universität Lüneburg
CY - Lüneburg
ER -