Optimal investment in ecological rehabilitation under climate change

摘要: Ecological rehabilitation is subject to a variety of risks affecting the likely return on investment. We propose an options approach allocating scarce conservation funds that explicitly allows for irreversibility investment and payoffs. The captures ecosystem dynamics from extinction debt, as well ecological climatic at project scale. Climatic are introduced through three channels: effects climate change species loss, future benefits frequency catastrophic events. Our results suggest voluntary contracts basis real criteria increases cost-efficiency delivers greater value money Government when compared with conventional cost-effectiveness criterion it illustrated case Box Gum Grassy Woodland in Australia.