Wetlands Mitigation Banks: A Developer's Investment Problem
| dc.creator | Fernandez, Linda | |
| dc.creator | Karp, Larry | |
| dc.date | 2017-04-01T19:46:14Z | |
| dc.date.accessioned | 2026-07-09T09:04:03Z | |
| dc.description | gie study a land developer's decision to invest in a wetlands mitigation bank. The state at which it is optimal to "cash in" the investment in return for restoration credits increases with uncertainty. We calibrate and numerically solve a stochastic control model which describes the developer's investment problem. We study the effect of the parameters of the model on the investment trajectory and the optimal stopping state. A subsidy increases the option value of the investment and the stopping state. A small decrease in the variance of the state dynamics decreases the optit 'ialue of investment and the stopping state. | |
| dc.identifier | doi:10.22004/ag.econ.201376 | |
| dc.identifier | https://ageconsearch.umn.edu/record/201376/files/agecon-cal-713.pdf | |
| dc.identifier | http://ageconsearch.umn.edu/record/201376 | |
| dc.identifier.uri | http://hdl.handle.net/123456789/605410 | |
| dc.language | eng | |
| dc.publisher | ||
| dc.source | http://ageconsearch.umn.edu/record/201376 | |
| dc.title | Wetlands Mitigation Banks: A Developer's Investment Problem | |
| dc.type | Text |