Safety rules are developed, for biodiversity preservation. These
rules are designed to take into account the impact of uncertainty and
worst case scenarios, which when combined with unregulated ecosystem
management decisions, might produce extinction of species. The
safety rules take the form of fixed land allocation and fixed harvesting
rules under uncertainty. We explore how model uncertainty affects
these safety rules relative to the classic risk aversion case and how a
measure of precaution against worst case scenarios can be formulated.
11/03/2006
myEcon Newsletter
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