Utilising portfolio theory in environmental research – New perspectives and considerations.

Abstract Modern Portfolio Theory is a well-established method in economic research for considering the risks and returns in asset allocations and the potential benefits of diversification for risk averse agents. Thus, it is a useful tool for guiding sustainability discourse under uncertain future st...

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Publicado en:Journal of Environmental Management Vol. 231; pp. 926 - 940
Autores principales: Matthies, Brent D., Jacobsen, Jette Bredahl, Knoke, Thomas, Paul, Carola, Valsta, Lauri
Formato: Artículo
Publicado: Academic Press Inc. Feb2019
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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      dt: Feb2019
      vid: 231
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      pub: Academic Press Inc.
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        133750111
        10.1016/j.jenvman.2018.10.049
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        atl: Utilising portfolio theory in environmental research – New perspectives and considerations.
      aug:
        au:
          Matthies, Brent D.
          Jacobsen, Jette Bredahl
          Knoke, Thomas
          Paul, Carola
          Valsta, Lauri
        affil:
          Helsinki Institute of Sustainability Science, Faculty of Agriculture and Forestry, University of Helsinki, P.O. Box 27 (Latokartaanonkaari 7), 00014, Helsinki, Finland
          Dasos Capital Oy, Itämerentori 2, 00180, Helsinki, Finland
          Section for Environment and Natural Resources, Rolighedsvej 23, 1958 Frb. C, Old Building Living Room, Building: A107, Copenhagen, Denmark
          Institute of Forest Management, Hans-Carl-von-Carlowitz-Platz 2, 85354, Freising, Germany
          Department of Forest Economics and Forest Management, Georg-August-University Goettingen, Busway 3, 37077, Göttingen, Germany
          Faculty of Agriculture and Forestry, University of Helsinki, P.O. Box 27 (Latokartaanonkaari 7), 00014, Helsinki, Finland
      su:
        Discourse analysis
        Sustainability
        Ecosystem services
        Portfolio diversification
        Environmental management
      sug:
        subj:
          Discourse analysis
          Sustainability
          Ecosystem services
          Portfolio diversification
          Environmental management
      keyword:
        Diversification
        Ecosystem service
        Environmental risk
        Modern portfolio theory
        Diversification
        Ecosystem service
        Environmental risk
        Modern portfolio theory
      ab: Abstract Modern Portfolio Theory is a well-established method in economic research for considering the risks and returns in asset allocations and the potential benefits of diversification for risk averse agents. Thus, it is a useful tool for guiding sustainability discourse under uncertain future states. Existing discussions around the method's use in environmental research have evolved during over the 75 years of its application, leading to a continued renewal of perspectives on utilising it. We classify the environmental questions where portfolio theory has been applied, and critically discuss the methodological approaches taken; providing a stepping stone for future use of the method. This article provides a framework for its application in environmental research using the following questions: 1) what is the type of research or management question and objective(s) of the decision-maker(s); 2) what are the definitions of the assets to be included in the portfolio; 3) what are the ways that returns are valued, discounted, distributed and weighted; 4) what is the most appropriate way for risks to be accounted for and managed, including the selection of the appropriate model and taking into account risk preferences; and 5) what are the definitions of constraints in the programming problem.
      pubtype: Academic Journal
      doctype: Article
      src: R
    language: English
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