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This publication represents a review and a critical re-evaluation of the literature dealing with option value. This literature is rich and dynamic and provides a fascinating sequence of articles, comments, and rebuttals. Reevaluation of the concept requires a rather comprehensive review of this literature, which is something that has not been provided to date. The literature review is also important because the work of some authors has been systematically overlooked in the course of the debate. As a result of this oversight, the original formulation of the concept continues to be cited in the literature even though its practical significance is doubtful.
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Life Sciences and Agriculture Experiment Station
cost effectiveness, option value
Natural Resource Economics
Reiling, S.D., and M.W. Anderson. 1980. The relevance of option value in benefit-cost analysis. Life Sciences and Agriculture Experiment Station Technical Bulletin 101.