Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/82562
Authors: 
Li, Chuan-Zhong
Mäler, Karl-Göran
Year of Publication: 
2010
Series/Report no.: 
Working Paper, Department of Economics, Uppsala University 2010:16
Abstract: 
This paper is concerned with the theory of resilience pricing and sustainability measurement in the presence of risk for regime shift in a dynamic economy-environment system. Following Holling (1973),we consider resilience as the maximal perturbation that the system can absorb without flipping into a qualitatively different state. Using a multisector growth model under uncertainty, we derive the shadow price of resilience that affects the probabilities of the system to flip in the future. We also analyze the role of resilience on sustainability with both ex-ante and ex-post welfare measures.
Subjects: 
regime shift
resilience
ecosystem
valuation
inclusive wealth
JEL: 
D60
D90
Q50
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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