Chuan-Zhong Li

A dynamic model of biodiversity preservation

This paper attempts to develop a dynamic model of optimal biodiversity preservation in a stylized ecosystem. Species richness (number of species) is used as a measure of diversity and its interactions with the resource stock, consumptive extraction and preservation efforts are explored using a two-state variable optimal control model. The analysis extends to the implications of a random threshold in species richness and the relationship between ecological and economic stability conditions. Dynamic paths and equilibrium characteristics are illustrated using numerical techniques.

Real versus Hypothetical Willingness to Accept: The Bishop and Heberlein Model Revisited.

To study the validity of survey-based contingent value estimates, Bishop and Heberlein (1979) compared peoples stated and real willingness to accept (WTA) for hunting permits. This paper reconsiders the econometric issue of estimating their referendum mo

Green national accounting and sustainability

Description Concerns about natural resource scarcity, together with the increased awareness of environmental problems, have led to widespread interest in green accounting, which attempts to extend ...

Growth, Pollution, and Money-Metric Welfare in Imperfect Markets

This paper shows how utility based welfare measures in dynamic general equilibrium under imperfect markets can be transferred into a money metrics. In order to do this, we need to price forward looking components measured in units of utility. The typical comprehensive (green or inclusive) quasi-static welfare measure contains a core that looks like a comprehensive NNP component, as well as additional consumer surplus terms for both consumption goods and the externality. In addition, it contains a forward looking component with the discounted value of the marginal externality as the function to be integrated over time is also required. To accomplish this, we need a price index that is independent of the market basket, or to assume that the marginal utility of income is constant over time. With respect to local welfare measures it turns out that growth in traditional NNP will surprisingly work, provided that we condition on a positive average marginal rate of return of investment, and use an augmented genuine saving concept.