Conference paper

Publication year: 2008

URL: http://www.bioecon-network.org/pages/10th_2008/05.Nuppenau.doc

Conference: 10th International BIOECON Conference

Abstract: 

Any management of biodiversity has to deal with priority setting. Priority setting contributes to allocative efficiency of managing biodiversity. Practical management has to cope with scarcity mea­sure­ment. Scarcity is normally, i.e. in a market economy, measured in prices. Since no market exists for diversity or species, in particular, surrogates are needed. This paper deals with the problem of finding relative values (prices) for species in the case of an eco-system management in a cultural landscape. It combines the concepts of willingness to pay and willingness to accept through an ecologically motivated redesign of a landscape. For in­stru­ment combination we use the con­cept of shadow prices. Shadow prices are obtained from con­strained maximization. The conflicting problem of “objective”, i.e. market like, joint valu­ation of biodiversity by citizens, farmers, and experts is solved by behavioral equa­tions which al­low a simulation. This simulation provides the equilibrium for likely species appearance and as­si­gned shadow prices based on behavioral equations. The paper is organized such as that the the­ory of sha­dow price derivation in a framework of linear and non-linear program­ming is pre­­­sen­ted. From this we obtain quadratic objective functions for each participant in a valu­ation process. Qua­si demand and supply functions are conceptualized by which we simu­la­te a market. Specific roles of ecologists as experts and potential managers of a landscape are addres­sed and a balanced solution on values, value oriented management, and spe­cies pre­va­len­ce is provided. The paper serves to develop a tool which will help to solve the pro­b­lem of joint ecological and economic evaluation of biodiversity as complex non-market good. Monetary va­lu­a­tion is only part of the approach, though integrated into the priority setting.

Harvard Citation style: Nuppenau, E. (2008) Efficient Biodiversity Management through Shadow Price Evaluation: On Instruments of Landscape Design, Farmers’ Supply and Citizens’ Demand, 10th International BIOECON Conference, Cambridge, September 28-30, 2008. http://www.bioecon-network.org/pages/10th_2008/05.Nuppenau.doc

APA Citation style: Nuppenau, E. (2008, September 28-30, 2008). Efficient Biodiversity Management through Shadow Price Evaluation: On Instruments of Landscape Design, Farmers’ Supply and Citizens’ Demand. 10th International BIOECON Conference, Cambridge. http://www.bioecon-network.org/pages/10th_2008/05.Nuppenau.doc