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The Economics of Nature: Managing Biological Assets

The Economics of Nature: Managing Biological Assets

G. Cornelis Van Kooten, Erwin H. Bulte

ISBN: 978-0-631-21895-1 July 2000 Wiley-Blackwell 532 Pages


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The Economics of Nature Management takes a unique "portfolio management" perspective on the worldwide deterioration of the natural environment.
List of Tables.

List of Figures.


Part I: Managing the Earth's Biological Assets.

Part II: Consumer Welfare Measurement:.

Consumer Demand Theory.

Measuring Changes in the Well Being of Consumers.

Public Goods and Welfare Change.

General Equilibrium Considerations.

Appendix: Consumer Surplus and Path Dependency.

Part III: Producer Welfare and Aggregation of Well Being:.

Measuring Producer Surplus via the Input Market.

Aggregation of Economic Welfare.

Compensation Tests and Social Welfare Functions.

Part IV: Resource Rents and Rent Capture:.

What is Rent?.

Agricultural Land and Rent Capture.

Taxation, Charges and Rent Capture in Forestry.

Property Rights and Rent Dissipation in Fisheries.

Part V: Valuing Nonmarket Benefits:.

Expenditure Function Approach.

Recreation Demand and the Travel Cost Method.

The Contingent Valuation Method.

Other Direct Valuation Methods.


Part VI: Evaluating Natural Resource Policy:.

Policy Evaluation and the Role of Government.

A Brief Background to Cost-Benefit Analysis.

Choice of Social Discount Rate.

Mechanics of Cost-Benefit Analysis.

Applications of Cost-Benefit Analysis.


Part VII: Economic Dynamics and Renewable Resource Management:.


Optimal Population Size and Economic Dynamics.


Property Rights and Dynamics.

Uncertainty in Resource Exploitation.

Beyond Bioeconomic Models? Species Interaction.

Appendix I: Deterministic Optimal Control Methods.

Appendix II: Stochastic Dynamic Optimisation.

Part VIII: Sustainable Development and Conservation:.


Sustainability Paradigms: Maintaining Capital Stocks.

Sustainable Development: Related Concepts.

Sustainability Indicators and Evidence.

The Environmental Kuznets Curve.


Part IX: Biological Diversity and Habitat:.

Biological Diversity: Background.

Economics, Values and Endangered Species Legislation.

Economic Values and Biodiversity.

Nature Conservation and Protected Areas.


Part X: Threatened and Endangered Species:.

Protecting Biological Diversity by Treaties.

The African Elephant.

Game Ranching to Conserve Wildlife in Kenya.

Should Whales be Harvested?.


Part XI: Forest Management:.

Forest Competitiveness and Certification.

Optimal Forest Rotation Age.

The Allowable Cut Effect and Even Flow Constraints.

Climate Change and Forestry.


Part XII: Tropical Deforestation:.

Tropical Deforestation: Global Patterns and Rates.

Economic Value of Tropical Forests.

Causes of Tropical Deforestation.

Is Tropical Deforestation Excessive?.


Part XIII: Conclusions.



"This book is a significant resource both as a foundational reference in the field and as a graduate text. It goes immediately to the question of how fast we should disinvest in natural capital and how we use economic tools to determine the answer to that question. With its unusual combination of depth and focus, it is a real contribution to the current literature on the economic assessment and management of biological resources. There are presently no texts that are as inclusive and simultaneously as advanced as this one." Jane V. Hall, California State University-Fullerton
  • The application of economic theory through case studies in nature management is unique.
  • The tools necessary to analyze the optimal management of nature and compare the results with the results obtained in investing in societies' other imperatives are provided.

  • The treatment of topical issues is state of the art.
  • Many insights from conservation biology are provided.