A Real Options Approach to Forest-Management Decision Making to Protect Caribou under the Threat of Extinction
Don G. Morgan, British Columbia Ministry of Forests and Range
S. Ben Abdallah, Université du Québec à Montréal
Pierre Lasserre, Université du Québec à Montréal
Full Text: HTML
Uncertainty is a dominant feature of decision making in forestry and wildlife management. Aggravating this challenge is the irreversibility of some decisions, resulting in the loss of economic opportunities or the extirpation of wildlife populations. We adapted the real options approach from economic theory to develop a methodology to evaluate a resource management decision to stop timber harvesting when a woodland caribou (Rangifer tarandus caribou
) population becomes threatened with extinction. In our study area of central Labrador, Canada, both caribou and timber harvesting are valued ecosystem services. By using a decision rule, which incorporates future developments, the real options approach provides a technique to incorporate ecological and social uncertainty into forest-management decision making. As a result, it reduces the risk of a forest manager making a decision with unwanted irreversible consequences or failing to make a decision that could avoid such unwanted consequences.
decision support; real options; forest planning; wildlife management; caribou; Labrador;
Copyright © 2008 by the author(s). Published here under license by The Resilience Alliance. This article is under a Creative Commons Attribution-NonCommercial 4.0 International License. You may share and adapt the work for noncommercial purposes provided the original author and source are credited, you indicate whether any changes were made, and you include a link to the license.