Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/53198 
Year of Publication: 
2010
Series/Report no.: 
Nota di Lavoro No. 160.2010
Publisher: 
Fondazione Eni Enrico Mattei (FEEM), Milano
Abstract: 
In this paper stochastic dynamic programming is used to investigate habitat conservation by a multitude of landholders under uncertainty about the value of environmental services and irreversible development. We study land conversion under competition on the market for agricultural products when voluntary and mandatory measures are combined by the Government to induce adequate participation in a conservation plan. We analytically determine the impact of uncertainty and optimal policy conversion dynamics and discuss different policy scenarios on the basis of the relative long-run expected rate of deforestation. Finally, some numerical simulations are provided to illustrate our findings.
Subjects: 
Optimal Stopping
Deforestation
Payments For Environmental Services
Natural
JEL: 
C61
D81
Q24
Q58
Document Type: 
Working Paper

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