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Valuation and management of tropical forests

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  • 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
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    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.
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    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.
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    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.

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