Project Management

The Economic Insurance Value Of Ecosystem Resilience

Download Now Free registration required

Executive Summary

Ecosystem resilience, i.e. an ecosystem's ability to maintain its basic functions and controls under disturbances, is often interpreted as insurance: by decreasing the probability of future drops in the provision of ecosystem services, resilience insures risk-averse ecosystem users against potential welfare losses. Using a general and stringent definition of "Insurance" and a simple ecological-economic model, the authors derive the economic insurance value of ecosystem resilience and study how it depends on ecosystem properties, economic context, and the ecosystem user's risk preferences.

  • Format: PDF
  • Size: 490.9 KB