Double Irreversibilities and Endogenous Learning in Land Conversion Decisions
نویسندگان
چکیده
We show the effects of uncertainty, ecological and economic irreversibility, and endogenous learning on land preservation decisions for species conservation. We compare the optimal decisions of three types of decision makers: an experimenting decision maker who recognizes the endogeneity of information, a real options decision maker who ignores the endogeneity but recognizes the future availability of more information, and a nonlearning decision maker who ignores the possibility of future information altogether. While recognizing information endogeneity always leads to more land preservation, its effect is dampened by economic irreversibility but enhanced by ecological irreversibility. The prospect of learning in the future in itself may or may not lead to more preservation depending on the relative importance of the two irreversibilities. When ecological irreversibility dominates land preservation irreversibility, the experimenting decision maker preserves the largest amount of land, followed by the real options decision maker, and the nonlearning decision maker.
منابع مشابه
Prediction of Land Use Change and its Hydrological Effects Using Markov Chain Model and SWAT Model
Access to current and future water resources is one of the concerned problems for managers and policymakers around the world. Because of the communication between water resources and land use, these two topics had come together in different researches. Scenarios designed in regional land planning provide the basis for analyzing the existing opportunities and making the right decisions for manag...
متن کاملDust source mapping using satellite imagery and machine learning models
Predicting dust sources area and determining the affecting factors is necessary in order to prioritize management and practice deal with desertification due to wind erosion in arid areas. Therefore, this study aimed to evaluate the application of three machine learning models (including generalized linear model, artificial neural network, random forest) to predict the vulnerability of dust cent...
متن کاملAdvanced Thermodynamic Analysis and Evaluation of a Supercritical Power Plant
A conventional exergy analysis can highlight the main components having high thermodynamic inefficiencies, but cannot consider the interactions among components or the true potential for the improvement of each component. By splitting the exergy destruction into endogenous/exogenous and avoidable/unavoidable parts, the advanced exergy analysis is capable of providing additional information to c...
متن کاملThermodynamic diagnosis of a novel solar-biomass based multi-generation system including potable water and hydrogen production
In this study, a new proposed multi-generation system as a promising integrated energy conversion system is studied, and its performance is investigated thermodynamically. The system equipped with parabolic trough collectors and biomass combustor to generate electricity, heating and cooling loads, hydrogen and potable water. A double effect absorption chiller to provide cooling demand, a proton...
متن کامل