A market-based approach to manage endangered species interactions
Working paper
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http://hdl.handle.net/11250/164147Utgivelsesdato
2010-09Metadata
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- Discussion papers (FOR) [566]
Sammendrag
An economic activity interacts with an endangered species. The activity
can be divided into mutually exclusive strata with different levels of inter-
action. Observing the activity in order to monitor interactions is costly.
It may be desirable to manage the activity with a probability model which
balances the benefit from the activity against the cost of the interaction
with the endangered specie instead. The model gives rise to a permit
scheme which fixates the risk of interaction over all strata and which uses
the market mechanism to optimally allocate the activity between strata.
The model can facilitate uncertainty in interaction rate estimates.
Utgiver
Norwegian School of Economics and Business Administration. Department of Finance and Management ScienceSerie
Discussion paper2010:11