SP 6 - Economic risk analysis and valuation

The objective of SP 6 is to provide an economic valuation and risk analysis of the land management scenarios studied in the overall project. This work package consists of two parts: one part – SP 6.1 – employs the contingent valuation method to empirically assess the economic value of the various land management scenarios while the other part – SP 6.2 – focuses on the theoretical concepts needed to quantify income risks when the probabilities of possible outcomes are unknown, a task which is essentially out of reach of classical expected utility theory.