Feng, Hongli; Hennessy, David A.

Ecological Economics Vol. 68 no. 1-2 (December 2008): 532-535.

The probability of alienspecies invasion is reasonably characterized by a weakest link technology. A tradeableriskpermit system for shippers has been proposed as a means of efficiently reducing this invasion probability. Economic jointness arising from statistical independence among private risks for the weakest link technology implies that the risk instrument to be traded should be linear in the log of firm success probabilities, rather than linear in firm success probabilities.

JEL Classification: D62, H23, Q25

Keywords: biological control; independence; linearize; permit trading; risk abatement; uniformly mixed pollutant; weakest link

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