Conservation Payments under Risk: A Stochastic Dominance Approach
Conservation payments can be used to preserve forest and agroforest systems. To explain landowners' land-use decisions and determine appropriate conservation payments, it is necessary to focus on revenue risk. Marginal conditional stochastic dominance rules are used to derive conditions for determining the conservation payments required to guarantee that the environmentally preferred land use dominates. An empirical application to shaded coffee protection in the biologically important "Chocó" region of West Ecuador shows that conservation payments required for preserving shaded coffee areas are much higher than those calculated under risk-neutral assumptions. Further, the extant distribution of land has strong impacts on the required payments. Copyright 2006 American Agricultural Economics Association.
Year of publication: |
2006
|
---|---|
Authors: | Benítez, Pablo C. ; Kuosmanen, Timo ; Olschewski, Roland ; Kooten, G. Cornelis van |
Published in: |
American Journal of Agricultural Economics. - American Agricultural Economics Association. - Vol. 88.2006, 1, p. 1-15
|
Publisher: |
American Agricultural Economics Association |
Saved in:
freely available
Saved in favorites
Similar items by person
-
Conservation Payments under Risk: A Stochastic Dominance Approach
Benítez, Pablo C., (2006)
-
Conservation payments under risk : a stochastic dominance approach
Benítez, Pablo C., (2006)
-
Conservation Payments Under Risk : A Stochastic Dominance Approach
Benítez, Pablo C., (2013)
- More ...