Quasi-option value: Some misconceptions dispelled

Anthony C. Fisher, W. Michael Hanemann

Research output: Contribution to journalArticlepeer-review

59 Scopus citations

Abstract

We discuss a couple of important issues in the recent literature on quasi-option value. We show that the assertion that quasi-option value can be negative in a model with independent learning is based on confusion between quasi-option value, which is always positive, and the net benefit of preservation (of a natural environment subject to development), which is not. We also explore the significance of different assumptions about the nature of learning and show that the result that quasi-option value is positive is surprisingly robust.

Original languageEnglish (US)
Pages (from-to)183-190
Number of pages8
JournalJournal of Environmental Economics and Management
Volume14
Issue number2
DOIs
StatePublished - Jun 1987
Externally publishedYes

ASJC Scopus subject areas

  • Economics and Econometrics
  • Management, Monitoring, Policy and Law

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