We develop a valuation model based on conservation rules, and stochastic prices and inventories. Dynamic programming determines the optimal harvest amount. A hedge portfolio based on a resource reserve is proposed. The optimal size of the reserve is determined, as well as its value.

The transition from an open access to a private property rights management regime requires valuation mechanisms that respond to new incentives. The analysis relies on the NPV model, the Arrow Fisher (1972) result and the Black-Scholes option pricing model to describe the necessary elements of...

This paper examines the economic impact of selected farmland characteristics on the appraised value of development rights. Price elasticities are estimated for the size and location of farmland parcels, the amount of road frontage, the existence of panoramic views, and the distance to urban...