PubData Leuphana Repository: The Private and Public Insurance Value of Conservative Biodiversity Management

Please use this identifier to cite or link to this item: https://doi.org/10.48548/pubdata-1221

Resource type	Working Paper
Title(s)	The Private and Public Insurance Value of Conservative Biodiversity Management
DOI	10.48548/pubdata-1221
Handle	20.500.14123/1284
Creator	Baumgärtner, Stefan 0000-0001-8314-8462 121846857 Quaas, Martin F. 0000-0003-0812-8829
Abstract	Abstract. The ecological literature suggests that biodiversity reduces the variance of ecosystem services. Thus, conservative biodiversity management has an insurance value to risk-averse users of ecosystem services. We analyze a conceptual ecological-economic model in which such management measures generate a private benefit and, via ecosystem processes at higher hierarchical levels, a positive externality on other ecosystem users. We find that ecosystem management and environmental policy depend on the extent of uncertainty and risk-aversion as follows: (i) Individual effort to improve ecosystem quality unambiguously increases. The free-rider problem may decrease or increase, depending on the characteristics of the ecosystem and its management; in particular, (ii) the size of the externality may decrease or increase, depending on how individual and aggregate management effort influence biodiversity; and (iii) the welfare loss due to free-riding may decrease or increase, depending on how biodiversity influences ecosystem service provision.
Language	English
Keywords	Biodiversity; Ecosystem; Management; Insurance; Public Good; Ökosystem; Versicherung; Haftpflichtrisiko; Öffentliches Gut
Year of publication in PubData	2006
Publishing type	First publication
Publication version	Published version
Date issued	2006-11-22
Creation context	Research
Published by	Medien- und Informationszentrum, Leuphana Universität Lüneburg
Related resources	Relations of this publication Relations of this publication