IDEAS home Printed from https://ideas.repec.org/a/kap/enreec/v8y1996i1p39-61.html
   My bibliography  Save this article

Valuation and management of tropical forests

Author

Listed:
  • Heidi Albers
  • Anthony Fisher
  • W. Hanemann

Abstract

This paper develops a framework for the valuation and management of tropical forests that reflects their ecological and economic characteristics. The analysis demonstrates the importance of modeling the feasible use patterns and the information structure in tropical forest management decisions. The model predicts that cases exist where the foresighted management of forests leads to more preservation than the traditional expected value approach. An application in Thailand provides evidence that such cases occur in relevant ranges of benefit flows. The model focuses tropical forest management on assessments of sustainability and feasible sequences in light of uncertainty and information flows. Copyright Kluwer Academic Publishers 1996

Suggested Citation

  • Heidi Albers & Anthony Fisher & W. Hanemann, 1996. "Valuation and management of tropical forests," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 8(1), pages 39-61, July.
    • Handle: RePEc:kap:enreec:v:8:y:1996:i:1:p:39-61
    DOI: 10.1007/BF00340652
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1007/BF00340652
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1007/BF00340652?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Tisdell, Clement A., 1994. "Presenting Requests for Financial Support for Protected Areas: The Environmental Economics Commonsense," Biodiversity Conservation: Studies in its Economics and Management, Mainly in Yunnan China 143264, University of Queensland, School of Economics.
    2. Samuel Fankhauser, 1994. "The Social Costs of Greenhouse Gas Emissions: An Expected Value Approach," The Energy Journal, International Association for Energy Economics, vol. 0(Number 2), pages 157-184.
    3. Kenneth J. Arrow & Anthony C. Fisher, 1974. "Environmental Preservation, Uncertainty, and Irreversibility," Palgrave Macmillan Books, in: Chennat Gopalakrishnan (ed.), Classic Papers in Natural Resource Economics, chapter 4, pages 76-84, Palgrave Macmillan.
    4. Binswanger, Hans P., 1991. "Brazilian policies that encourage deforestation in the Amazon," World Development, Elsevier, vol. 19(7), pages 821-829, July.
    5. Batie, Sandra S., 1989. "Sustainable Development: Challenges to the Profession of Agricultural Economics," 1989 Annual Meeting, July 30-August 2, Baton Rouge, Louisiana 270686, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    6. Hanemann, W. Michael, 1989. "Information and the concept of option value," Journal of Environmental Economics and Management, Elsevier, vol. 16(1), pages 23-37, January.
    7. Ronald W. Hilton, 1981. "The Determinants of Information Value: Synthesizing Some General Results," Management Science, INFORMS, vol. 27(1), pages 57-64, January.
    8. Sandra S. Batie, 1989. "Sustainable Development: Challenges to Profession of Agricultural Economics," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 71(5), pages 1083-1101.
    9. Fisher, Anthony C & Krutilla, John V & Cicchetti, Charles J, 1972. "The Economics of Environmental Preservation: A Theoretical and Empirical Analysis," American Economic Review, American Economic Association, vol. 62(4), pages 605-619, September.
    10. Henry, Claude, 1974. "Investment Decisions Under Uncertainty: The "Irreversibility Effect."," American Economic Review, American Economic Association, vol. 64(6), pages 1006-1012, December.
    11. repec:bla:jecsur:v:15:y:2001:i:3:p:413-33 is not listed on IDEAS
    12. Albers, Heidi J., 1996. "Modeling Ecological Constraints on Tropical Forest Management: Spatial Interdependence, Irreversibility, and Uncertainty," Journal of Environmental Economics and Management, Elsevier, vol. 30(1), pages 73-94, January.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Gardner Brown, 2000. "Renewable Natural Resource Management and Use Without Markets," Working Papers 0025, University of Washington, Department of Economics.
    2. Albers, Heidi J., 1997. "Modeling Ecological Constraints on Tropical Forest Management: Reply," Journal of Environmental Economics and Management, Elsevier, vol. 33(2), pages 214-219, June.
    3. Albers, H. J. & Goldbach, M. J., 2000. "Irreversible ecosystem change, species competition, and shifting cultivation," Resource and Energy Economics, Elsevier, vol. 22(3), pages 261-280, July.
    4. Gardner M. Brown, 2000. "Renewable Natural Resource Management and Use without Markets," Journal of Economic Literature, American Economic Association, vol. 38(4), pages 875-914, December.
    5. Jens Abildtrup & Jacques-Alexandre Laye & Maximilien Laye & Anne Stenger, 2012. "Irreversibility and Uncertainty in Multifunctional Forest Management Allocation," Post-Print hal-01072290, HAL.
    6. Albers, Heidi J. & Robinson, Elizabeth J.Z., 2007. "Spatial-temporal aspects of cost-benefit analysis for park management: An example from Khao Yai National Park, Thailand," Journal of Forest Economics, Elsevier, vol. 13(2-3), pages 129-150, August.
    7. Albers, Heidi, 2001. "A Spatial-Intertemporal Model for Tropical Forest Management Applied to Khao Yai National Park, Thailand," RFF Working Paper Series dp-01-35, Resources for the Future.
    8. Gardner Brown, 2000. "Renewable Natural Resource Management and Use Without Markets," Discussion Papers in Economics at the University of Washington 0025, Department of Economics at the University of Washington.
    9. Fisher, Anthony C., 2000. "Investment under uncertainty and option value in environmental economics," Resource and Energy Economics, Elsevier, vol. 22(3), pages 197-204, July.
    10. Erwin Bulte & G. van Kooten, 1999. "Marginal Valuation of Charismatic Species: Implications for Conservation," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 14(1), pages 119-130, July.
    11. Azqueta Oyarzún, Diego & Sotelsek, Daniel F., 1999. "Comparative advantages and the exploitation of environmental resources," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), August.
    12. Lars J. Ravn-Jonsen, 2009. "Ecosystem Management a Management View," Working Papers 86/09, University of Southern Denmark, Department of Sociology, Environmental and Business Economics.
    13. White, Benedict, 2002. "Optimal Monitoring of Agri-environmental Schemes," 2002 Conference (46th), February 13-15, 2002, Canberra, Australia 125606, Australian Agricultural and Resource Economics Society.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Albers, Heidi & Fisher, Anthony & Hanemann, W., 1995. "Valuation and Management of Tropical Forests: Implications of Uncertainty and Irreversibility," CUDARE Working Papers 198641, University of California, Berkeley, Department of Agricultural and Resource Economics.
    2. Albers, Heidi & Fisher, Anthony & Hanemann, W., 1993. "Valuation and Management of Tropical Forests: A Theoretical and Empirical Analysis," CUDARE Working Papers 198629, University of California, Berkeley, Department of Agricultural and Resource Economics.
    3. Lewis, David J. & Polasky, Stephen, 2018. "An auction mechanism for the optimal provision of ecosystem services under climate change," Journal of Environmental Economics and Management, Elsevier, vol. 92(C), pages 20-34.
    4. Graham-Tomasi, Theodore, 1985. "Uncertainty, Information, And Irreversible Investments," Staff Papers 14047, University of Minnesota, Department of Applied Economics.
    5. Narain, Urvashi & Hanemann, W. Michael & Fisher, Anthony C., 2004. "The Temporal Resolution of Uncertainty and the Irreversibility Effect," Department of Agricultural & Resource Economics, UC Berkeley, Working Paper Series qt7nn328qg, Department of Agricultural & Resource Economics, UC Berkeley.
    6. Attanasi, Giuseppe Marco & Montesano, Aldo, 2010. "Testing Value vs Waiting Value in Environmental Decisions under Uncertainty," TSE Working Papers 10-154, Toulouse School of Economics (TSE).
    7. Narain, Urvashi & Hanemann, W. Michael & Fisher, Anthony C, 2007. "The irreversibility effect in environmental decisionmaking," Department of Agricultural & Resource Economics, UC Berkeley, Working Paper Series qt7bc5t8cf, Department of Agricultural & Resource Economics, UC Berkeley.
    8. Coggins, Jay S. & Ramezani, Cyrus A., 1998. "An Arbitrage-Free Approach to Quasi-Option Value," Journal of Environmental Economics and Management, Elsevier, vol. 35(2), pages 103-125, March.
    9. Catherine Chambers & Paul Chambers & John Whitehead, 1997. "Historical resources, uncertainty and preservation values: An application of option and optimal stopping models," Journal of Economics and Finance, Springer;Academy of Economics and Finance, vol. 21(2), pages 51-61, June.
    10. Abebayehu Tegene & Keith Wiebe & Betsey Kuhn, 1999. "Irreversible Investment Under Uncertainty: Conservation Easements and the Option to Develop Agricultural Land," Journal of Agricultural Economics, Wiley Blackwell, vol. 50(2), pages 203-219, May.
    11. Barrett, Christopher B. & Batabyal, Amitrajeet A., 1997. "Modeling Ecological Constraints on Tropical Forest Management: Comment," Journal of Environmental Economics and Management, Elsevier, vol. 32(2), pages 271-275, February.
    12. V. Bosetti & J.M. Conrad & E. Messinat, 2004. "The Value of Flexibility: Preservation, Remediation, or Development for Ginostra?," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 29(2), pages 219-229, October.
    13. Fisher, Anthony C., 2000. "Investment under uncertainty and option value in environmental economics," Resource and Energy Economics, Elsevier, vol. 22(3), pages 197-204, July.
    14. Harry R. Clarke & William J. Reed, 1990. "Applications of Optimal Stopping in Resource Economics," The Economic Record, The Economic Society of Australia, vol. 66(3), pages 254-265, September.
    15. Chichilnisky, Graciela & Beltratti, Andrea & Heal, Geoffrey, 1998. "Uncertain future preferences and conservation," MPRA Paper 7912, University Library of Munich, Germany.
    16. Zhao, Jinhua & Kling, Catherine L., 2001. "A new explanation for the WTP/WTA disparity," Economics Letters, Elsevier, vol. 73(3), pages 293-300, December.
    17. Justus Wesseler, 2002. "The Option Value of Scientific Uncertainty on Pest - Resistance Development of Transgenic Crops," Others 0207005, University Library of Munich, Germany.
    18. Laurent Gilotte & Michel de Lara, 2005. "Precautionary Effect and Variations of the Value of Information," Working Papers 2005.28, Fondazione Eni Enrico Mattei.
    19. Pindyck, Robert S, 1991. "Irreversibility, Uncertainty, and Investment," Journal of Economic Literature, American Economic Association, vol. 29(3), pages 1110-1148, September.
    20. Fujii, Tomoki & Ishikawa, Ryuichiro, 2012. "Quasi-option value under strategic interactions," Resource and Energy Economics, Elsevier, vol. 34(1), pages 36-54.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:kap:enreec:v:8:y:1996:i:1:p:39-61. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.