Additivity in biodiversity problems

M. Gómez-Rúa, J. Vidal-Puga

We study biodiversity problems where a finite number of land sites have private owners. Land owners can use their land for either forests or for other uses. Since forests help to conserve biodiversity and are also less affected by climate change, they generate positive externalities over adjacent lands. A natural question is how to incentivize land owners to change their land use to forest use to maximize social benefit. In this paper, we study the property of additivity and characterize the rules that allow sharing the benefit of cooperation and satisfy this relevant property.

Keywords: Additivity, biodiversity, sharing rules.

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