The methods we use include among others optimization, valuation, econometrics and game theory.
Environmental and Resource Economics studies the interaction of society and environment, environmental issues and problems, and nature conservation by applying economic theory and methods. The scope of environmental and resource economics includes both positive and normative analysis. The positive analysis studies how economic actions affect natural resources and environment, while the normative analysis studies the preferred environmental behavior of the society, and how it compares to the behavior in the markets. The goal is to find ways to fix market failures so that natural resources are utilized sustainably, while preventing the degradation of nature. The theory and empirical applications of environmental and resource economics are based on the general economic theory, especially microeconomic theory, public economic theory and capital theory, in addition to methods of empirical research.
Our current research themes and the projects in which we collaborate are listed below. Projects are placed under the theme which they mostly relate to.
Biodiversity degrades at an alarming rate, both globally and in Finland. Habitat loss due to land use change is the most significant threat for biodiversity. Ecological compensation (also called biodiversity offsets) is a mechanism where biodiversity losses caused by human activity are compensated for. Compensatory measures can include restoring degraded habitats, and, in some cases, preserving existing valuable ecosystems. Ecological compensation resembles the ‘polluter pays’ principle, as the party responsible compensates the damage caused. The Habitat Bank is a research consortium analysing and developing the principles of ecological compensation and piloting compensations in practice. The team aims to provide science-based understanding and guidelines for a new market-based mechanism for biodiversity conservation in Finland, to complement the existing policy instrument mix. The consortium has grown from the Biodiversity Now! team, an awardee of the Helsinki Challenge science-based competition. The interdisciplinary team consists of researchers from University of Helsinki and Finnish Environment Institute (SYKE). The Habitat Bank collaborates with University of Jyväskylä, University of Lapland, Metsähallitus and many stakeholders from business, administration and NGO’s.
Persons working with this theme:
We study the interplay between water systems, the food sector, and other blue economy sectors under changing climatic and societal conditions. The central themes include the protection of aquatic environments, the control of pollution loads entering aquatic systems, the securing of adequate food and water resources, the promotion of economically efficient and environmentally friendly harvesting of fish stocks and other resources, sustainable management and governance of marine areas, and the enhancement of resilience in ecosystems, actors, and institutions within global food and water systems.
Our aim is to provide information that empowers producers, consumers, and policymakers in the food, water, and blue economy value chains to make economically and ecologically justified, responsible decisions regarding food and aquatic resources. Additionally, we strive to assist in the design of effective policies and policy instruments.
Our analyses span from individual fields to national, regional, and global scales. We employ methods from systems analysis and environmental and resource economics, including bioeconomic modeling, optimization, cost-benefit analysis, econometrics, game theory, and scenario techniques.
Choice analysis & valuation (Cava) group applies choice models and economic valuation methods to environmental and resource issues. Examples include forest recreation, recreational fishing, benefits of water basin management, aquatic ecosystem services, and wetland benefits.
Persons working with this theme:
Our research integrates economics, ecology and mathematical methods to understand the management of biological natural resources like forests or any natural populations. This has created a dialogue between existing scientific traditions and new discoveries realized by transferring knowledge between different fields. In proceeding toward new directions we are guided by cross-disciplinarity and the requirements of sound theoretical basis, mathematics, detailed empirical realism and computational methods. This enables harsh progressive and critical reflection of existing science, policy and practice.
Persons working with this theme: