Table 1. Descriptions and values of parameters for the real options model.

Parameter description
Value
Lognormal value
Amount of habitat at time 0
H0 = 467,185 ha
h0 = 13.0545
Critical minimum habitat threshold
He = 210,240 ha
he = 12.2560
Speed of reversion of the mean-reverting function
α = 0.05
...
Volatility of the mean-reverting function
σ = 0.05
...
Interest rate
r = 5%
...
Instantaneous utility from timber or the flow per unit of time of revenue from selling timber
ρ = 1
...
Instantaneous utility from caribou or the flow per unit time of (equivalent) revenue from the caribou’s existence
s = 2
...