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The spatial dimension in environmental and resource economics

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  • XEPAPADEAS, ANASTASIOS

Abstract

Mechanisms generating patterns in spatial domains have been extensively studied in biology, but also in economics in the context of new economic geography. The Turing mechanism or Turing diffusion-induced instability has been central to the understanding of forces which endogenously generate spatial patterns, but in a context where agents do not explicitly optimize an objective. The present paper reviews tools to study, in the spirit of Turing's analysis, a mechanism generating optimal diffusion-induced instability where optimizing agents generate optimal agglomerations. By extending the maximum principle to the optimal control of partial differential equations, it is shown how under certain conditions it will be optimal to design controls so that the price-quantity system implied by the costate–state functions of the optimal control of distributed parameter systems induces optimal spatial patterns. These methods might be useful in studying pattern formation both in problems of resource management and of economic development.

Suggested Citation

  • Xepapadeas, Anastasios, 2010. "The spatial dimension in environmental and resource economics," Environment and Development Economics, Cambridge University Press, vol. 15(6), pages 747-758, December.
    • Handle: RePEc:cup:endeec:v:15:y:2010:i:06:p:747-758_00
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    Citations

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    Cited by:

    1. Carmen Camacho & Agustín Pérez-Barahona, 2012. "Land use dynamics and the environment," Post-Print halshs-00674020, HAL.
    2. Hannes Uecker & Thorsten Upmann, 2016. "Optimal Fishery with Coastal Catch," CESifo Working Paper Series 6054, CESifo.
    3. Fabbri, Giorgio & Faggian, Silvia & Freni, Giuseppe, 2020. "Policy effectiveness in spatial resource wars: A two-region model," Journal of Economic Dynamics and Control, Elsevier, vol. 111(C).
    4. Camacho, Carmen & Pérez-Barahona, Agustín, 2015. "Land use dynamics and the environment," Journal of Economic Dynamics and Control, Elsevier, vol. 52(C), pages 96-118.
    5. Anastasios Xepapadeas, 2012. "Diffusion and Spatial Aspects," DEOS Working Papers 1232, Athens University of Economics and Business.
    6. Ballestra, Luca Vincenzo, 2016. "The spatial AK model and the Pontryagin maximum principle," Journal of Mathematical Economics, Elsevier, vol. 67(C), pages 87-94.
    7. Eli Fenichel & Timothy Richards & David Shanafelt, 2014. "The Control of Invasive Species on Private Property with Neighbor-to-Neighbor Spillovers," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 59(2), pages 231-255, October.
    8. Fabbri, G. & Faggian, S. & Freni, G., 2018. "Spatial resource wars: A two region example," Working Papers 2018-04, Grenoble Applied Economics Laboratory (GAEL).
    9. de Frutos, Javier & Martín-Herrán, Guiomar, 2019. "Spatial vs. non-spatial transboundary pollution control in a class of cooperative and non-cooperative dynamic games," European Journal of Operational Research, Elsevier, vol. 276(1), pages 379-394.
    10. Javier de Frutos & Guiomar Martín-Herrán, 2016. "Pollution control in a multiregional setting: a differential game with spatially distributed controls," Gecomplexity Discussion Paper Series 201601, Action IS1104 "The EU in the new complex geography of economic systems: models, tools and policy evaluation", revised Jan 2016.
    11. W. A. Brock & A. Xepapadeas, 2015. "Modeling Coupled Climate, Ecosystems, and Economic Systems," Working Papers 2015.66, Fondazione Eni Enrico Mattei.
    12. Rintaro Yamaguchi, 2021. "Genuine Savings and Sustainability with Resource Diffusion," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 80(2), pages 451-471, October.
    13. Jamie Bedson & Laura A. Skrip & Danielle Pedi & Sharon Abramowitz & Simone Carter & Mohamed F. Jalloh & Sebastian Funk & Nina Gobat & Tamara Giles-Vernick & Gerardo Chowell & João Rangel Almeida & Ran, 2021. "A review and agenda for integrated disease models including social and behavioural factors," Nature Human Behaviour, Nature, vol. 5(7), pages 834-846, July.

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