On Valuing Nature-Based Solutions to Climate Change: A Framework with Application to Elephants and Whales

47 Pages Posted: 4 Sep 2020

See all articles by Duke University - Economics Submitter

Duke University - Economics Submitter

Independent; Duke University - Department of Economics

Ralph Chami

International Monetary Fund (IMF)

Connel Fullenkamp

Duke University - Department of Economics

Fabio Berzaghi

Università degli studi della Tuscia

Sonia Español-Jiménez

affiliation not provided to SSRN

Milton Marcondes

Baleia Jubarte

Jose Palazzo

Baleia Jubarte

Date Written: August 2020

Abstract

We develop a framework for natural resource valuation that directly addresses the fundamental collective action problem in environmental protection. Our framework uses the lessons of behavioral economics to create values that individual decision makers find credible and relatable, in addition to stimulating excitement or concern that is essential to prompting action. We then apply this framework to value forest elephants in Africa and great whales that are found off the coasts of Brazil and Chile. The values we estimate for individual members of these species are significant: $1.75 million per forest elephant and an average of $2 million per whale. We discuss how our valuations lead to new designs for environmental preservation and restoration policies.

Keywords: Climate Change, Valuation, Carbon Capture, Behavioral Economics

JEL Classification: D62, G12, G41, Q5, Q54, Q57

Suggested Citation

Submitter, Duke University - Economics and Chami, Ralph and Fullenkamp, Connel and Berzaghi, Fabio and Español-Jiménez, Sonia and Marcondes, Milton and Palazzo, Jose, On Valuing Nature-Based Solutions to Climate Change: A Framework with Application to Elephants and Whales (August 2020). Economic Research Initiatives at Duke (ERID) Working Paper No. 297, Available at SSRN: https://ssrn.com/abstract=3686168 or http://dx.doi.org/10.2139/ssrn.3686168

Duke University - Department of Economics ( email )

213 Social Sciences Building
Box 90097
Durham, NC 27708-0204
United States
9196601847 (Phone)
27708 (Fax)

Ralph Chami

International Monetary Fund (IMF) ( email )

700 19th Street NW
Washington, DC 20431
United States
202-623-6039 (Phone)
202-623-6068 (Fax)

Connel Fullenkamp

Duke University - Department of Economics ( email )

213 Social Sciences Building
Box 90097
Durham, NC 27708-0204
United States
(919) 660-1800 (Phone)

Fabio Berzaghi

Università degli studi della Tuscia

Rettorato, Via S.M.in Gradi n.4
Viterbo, 01100
Italy

Sonia Español-Jiménez

affiliation not provided to SSRN

Milton Marcondes

Baleia Jubarte

Jose Palazzo

Baleia Jubarte

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
129
Abstract Views
496
rank
247,497
PlumX Metrics