The private and public insurance value of conservative biodiversity management

Research output: Working paperWorking papers

Standard

The private and public insurance value of conservative biodiversity management. / Baumgärtner, Stefan; Quaas, Martin F.
Lüneburg: Institut für Volkswirtschaftslehre der Universität Lüneburg, 2006. (Working paper series in economics; No. 33).

Research output: Working paperWorking papers

Harvard

Baumgärtner, S & Quaas, MF 2006 'The private and public insurance value of conservative biodiversity management' Working paper series in economics, no. 33, Institut für Volkswirtschaftslehre der Universität Lüneburg, Lüneburg.

APA

Baumgärtner, S., & Quaas, M. F. (2006). The private and public insurance value of conservative biodiversity management. (Working paper series in economics; No. 33). Institut für Volkswirtschaftslehre der Universität Lüneburg.

Vancouver

Baumgärtner S, Quaas MF. The private and public insurance value of conservative biodiversity management. Lüneburg: Institut für Volkswirtschaftslehre der Universität Lüneburg. 2006. (Working paper series in economics; 33).

Bibtex

@techreport{04be0e70da7743cdbe1f7401ea8603a6,
title = "The private and public insurance value of conservative biodiversity management",
abstract = "The ecological literature suggests that biodiversity reduces the variance of ecosystem services. Thus, conservative biodiversity management has an insurance value to risk-averse users of ecosystem services. We analyze a conceptual ecological-economic model in which such management measures generate a private benefit and, via ecosystem processes at higher hierarchical levels, a positive externality on other ecosystem processes at higher hierarchical levels, a positive externality on other ecosystem users. We find that ecosystem management and environmental policy depend on the extent of uncertainty and risk-aversion as follows: (i) Individual effort to improve ecosystem quality unambiguously increases. The free-rider problem may decrease or increase, depending on the characteristics of the ecosytsem and its management; in particular, (ii) the size of the externality may decrease or increase, depending on how individual and aggregate management effort influence biodiversity; and (iii) the welfare loss due to free-riding may decrease or increase, depending on how biodiversity influences ecosystem service provision.",
keywords = "Sustainability sciences, Management & Economics, biodiversity, ecosystem services, ecosystem management, free-riding, insurance, public good, risk-aversion, uncertainty",
author = "Stefan Baumg{\"a}rtner and Quaas, {Martin F.}",
note = "Literaturverz. S. 36 - 43",
year = "2006",
language = "English",
series = "Working paper series in economics",
publisher = "Institut f{\"u}r Volkswirtschaftslehre der Universit{\"a}t L{\"u}neburg",
number = "33",
type = "WorkingPaper",
institution = "Institut f{\"u}r Volkswirtschaftslehre der Universit{\"a}t L{\"u}neburg",

}

RIS

TY - UNPB

T1 - The private and public insurance value of conservative biodiversity management

AU - Baumgärtner, Stefan

AU - Quaas, Martin F.

N1 - Literaturverz. S. 36 - 43

PY - 2006

Y1 - 2006

N2 - The ecological literature suggests that biodiversity reduces the variance of ecosystem services. Thus, conservative biodiversity management has an insurance value to risk-averse users of ecosystem services. We analyze a conceptual ecological-economic model in which such management measures generate a private benefit and, via ecosystem processes at higher hierarchical levels, a positive externality on other ecosystem processes at higher hierarchical levels, a positive externality on other ecosystem users. We find that ecosystem management and environmental policy depend on the extent of uncertainty and risk-aversion as follows: (i) Individual effort to improve ecosystem quality unambiguously increases. The free-rider problem may decrease or increase, depending on the characteristics of the ecosytsem and its management; in particular, (ii) the size of the externality may decrease or increase, depending on how individual and aggregate management effort influence biodiversity; and (iii) the welfare loss due to free-riding may decrease or increase, depending on how biodiversity influences ecosystem service provision.

AB - The ecological literature suggests that biodiversity reduces the variance of ecosystem services. Thus, conservative biodiversity management has an insurance value to risk-averse users of ecosystem services. We analyze a conceptual ecological-economic model in which such management measures generate a private benefit and, via ecosystem processes at higher hierarchical levels, a positive externality on other ecosystem processes at higher hierarchical levels, a positive externality on other ecosystem users. We find that ecosystem management and environmental policy depend on the extent of uncertainty and risk-aversion as follows: (i) Individual effort to improve ecosystem quality unambiguously increases. The free-rider problem may decrease or increase, depending on the characteristics of the ecosytsem and its management; in particular, (ii) the size of the externality may decrease or increase, depending on how individual and aggregate management effort influence biodiversity; and (iii) the welfare loss due to free-riding may decrease or increase, depending on how biodiversity influences ecosystem service provision.

KW - Sustainability sciences, Management & Economics

KW - biodiversity

KW - ecosystem services

KW - ecosystem management

KW - free-riding

KW - insurance

KW - public good

KW - risk-aversion

KW - uncertainty

M3 - Working papers

T3 - Working paper series in economics

BT - The private and public insurance value of conservative biodiversity management

PB - Institut für Volkswirtschaftslehre der Universität Lüneburg

CY - Lüneburg

ER -

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