2002 World Congress of Environmental and Resource Economists

As world population increases, land areas available to wildlife shrink. With insufficient territory, some wildlife populations have been pushed into extinction, resulting in a loss of existence value, while others are causing significant economic damages. This paper proposes a continuous time framework based on real options to analyze wildlife control policies when the wildlife population follows a diffusion process. Our optimal stopping formulation permits to deal simply with the possibility of reintroduction and with the threat of extinction. We explicitly derive stopping rules for plausible population processes and apply our framework to the management of wolves in the Western United States.



	Paper Title:	Managing Wildlife Populations Under Uncertainty: Cutting Slack To Both Grandma And The Wolf
	Presenting Author:	Baishali Bakshi (University of California, Irvine)
	Coauthor 1:	Jean-Daniel Saphores
	Coauthor 2:
	Coauthor 3:
	Abstract:	As world population increases, land areas available to wildlife shrink. With insufficient territory, some wildlife populations have been pushed into extinction, resulting in a loss of existence value, while others are causing significant economic damages. This paper proposes a continuous time framework based on real options to analyze wildlife control policies when the wildlife population follows a diffusion process. Our optimal stopping formulation permits to deal simply with the possibility of reintroduction and with the threat of extinction. We explicitly derive stopping rules for plausible population processes and apply our framework to the management of wolves in the Western United States.
	Link to paper:	Not available

	Session / Day / Time	2D / Monday / 10:15 - 11:45 am

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