Advanced Search
MyIDEAS: Login to save this article or follow this journal

Pattern formation, spatial externalities and regulation in coupled economic-ecological systems

Contents:

Author Info

  • Brock, William
  • Xepapadeas, Anastasios

Abstract

We study the management of ecosystems in which interacting state variables that are affected by management decisions diffuse in space. We study pattern formation first in a setting where economic agents maximize myopic profits and ignore spillovers onto agents at other sites, and second in the context of a social planner who internalizes these spillovers. We compare patterns under these two institutions and study how the differences in the patterns generated by these two institutions impact the design of regulatory schemes to internalize the externalities. At the same time we introduce new methods based on Fourier series type decompositions that enable us to turn an intractable infinite dimensional optimal control problem into a countable number of finite dimensional optimal control problems. As far as we know these methods are new to the economics literature. Our theory is applied to the management and regulation of a semi-arid system.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www.sciencedirect.com/science/article/B6WJ6-4XPB6TG-1/2/da2508ceaa7fce7968f763a8633b14c8
Download Restriction: Full text for ScienceDirect subscribers only

As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

Bibliographic Info

Article provided by Elsevier in its journal Journal of Environmental Economics and Management.

Volume (Year): 59 (2010)
Issue (Month): 2 (March)
Pages: 149-164

as in new window
Handle: RePEc:eee:jeeman:v:59:y:2010:i:2:p:149-164

Contact details of provider:
Web page: http://www.elsevier.com/locate/inca/622870

Related research

Keywords: Pattern formation Reaction-diffusion Diffusion instability Spatial externalities Regulation;

Other versions of this item:

Find related papers by JEL classification:

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. Brock, William A. & Scheinkman, JoseA., 1976. "Global asymptotic stability of optimal control systems with applications to the theory of economic growth," Journal of Economic Theory, Elsevier, Elsevier, vol. 12(1), pages 164-190, February.
  2. JunJie Wu & Bruce A. Babcock, 1996. "Spatial Heterogeneity and the Choice of Instruments to Control Nonpoint Pollution," Center for Agricultural and Rural Development (CARD) Publications, Center for Agricultural and Rural Development (CARD) at Iowa State University 96-wp164, Center for Agricultural and Rural Development (CARD) at Iowa State University.
  3. Feichtinger, Gustav & Novak, Andreas & Wirl, Franz, 1994. "Limit cycles in intertemporal adjustment models : Theory and applications," Journal of Economic Dynamics and Control, Elsevier, Elsevier, vol. 18(2), pages 353-380, March.
  4. Sanchirico, James N. & Wilen, James E., 2001. "A Bioeconomic Model of Marine Reserve Creation," Journal of Environmental Economics and Management, Elsevier, Elsevier, vol. 42(3), pages 257-276, November.
  5. Costello, Christopher & Polasky, Stephen, 2008. "Optimal harvesting of stochastic spatial resources," Journal of Environmental Economics and Management, Elsevier, Elsevier, vol. 56(1), pages 1-18, July.
  6. Brock, William & Xepapadeas, Anastasios, 2008. "Diffusion-induced instability and pattern formation in infinite horizon recursive optimal control," Journal of Economic Dynamics and Control, Elsevier, Elsevier, vol. 32(9), pages 2745-2787, September.
  7. Stephen Polasky & Jeffrey D. Camm & Brian Garber-Yonts, 2001. "Selecting Biological Reserves Cost-Effectively: An Application to Terrestrial Vertebrate Conservation in Oregon," Land Economics, University of Wisconsin Press, University of Wisconsin Press, vol. 77(1), pages 68-78.
  8. Sanchirico, James N. & Wilen, James E., 2005. "Optimal spatial management of renewable resources: matching policy scope to ecosystem scale," Journal of Environmental Economics and Management, Elsevier, Elsevier, vol. 50(1), pages 23-46, July.
  9. Goetz, Renan U. & Zilberman, David, 2000. "The dynamics of spatial pollution: The case of phosphorus runoff from agricultural land," Journal of Economic Dynamics and Control, Elsevier, Elsevier, vol. 24(1), pages 143-163, January.
  10. James E. Wilen, 2007. "Economics of Spatial-Dynamic Processes," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, Agricultural and Applied Economics Association, vol. 89(5), pages 1134-1144.
  11. Hochman, Eithan & Pines, David & Zilberman, David, 1977. "The Effects of Pollution Taxation on the Pattern of Resource Allocation: The Downstream Diffusion Case," The Quarterly Journal of Economics, MIT Press, MIT Press, vol. 91(4), pages 625-38, November.
  12. Costello, Christopher & Polasky, Stephen, 2004. "Dynamic reserve site selection," Resource and Energy Economics, Elsevier, Elsevier, vol. 26(2), pages 157-174, June.
  13. Smith, Martin D. & Wilen, James E., 2003. "Economic impacts of marine reserves: the importance of spatial behavior," Journal of Environmental Economics and Management, Elsevier, Elsevier, vol. 46(2), pages 183-206, September.
  14. Smith, Martin D. & Sanchirico, James N. & Wilen, James E., 2009. "The economics of spatial-dynamic processes: Applications to renewable resources," Journal of Environmental Economics and Management, Elsevier, Elsevier, vol. 57(1), pages 104-121, January.
  15. Sanchirico, James N., 2005. "Additivity properties in metapopulation models: implications for the assessment of marine reserves," Journal of Environmental Economics and Management, Elsevier, Elsevier, vol. 49(1), pages 1-25, January.
  16. Sanchirico, James N. & Wilen, James E., 1999. "Bioeconomics of Spatial Exploitation in a Patchy Environment," Journal of Environmental Economics and Management, Elsevier, Elsevier, vol. 37(2), pages 129-150, March.
Full references (including those not matched with items on IDEAS)

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Brock, William A. & Xepapadeas, Anastasios & Yannacopoulos, Athanasios N., 2014. "Spatial externalities and agglomeration in a competitive industry," Journal of Economic Dynamics and Control, Elsevier, Elsevier, vol. 42(C), pages 143-174.
  2. Desmet, Klaus & Rossi-Hansberg, Esteban, 2009. "Spatial Development," CEPR Discussion Papers, C.E.P.R. Discussion Papers 7479, C.E.P.R. Discussion Papers.
  3. Elena G. Irwin, 2010. "New Directions For Urban Economic Models Of Land Use Change: Incorporating Spatial Dynamics And Heterogeneity," Journal of Regional Science, Wiley Blackwell, Wiley Blackwell, vol. 50(1), pages 65-91.
  4. repec:hal:journl:halshs-00674020 is not listed on IDEAS
  5. William Brock & Anastasios Xepapadeas & Athanasios Yannacopoulos, . "Robust Control of a Spatially Distributed Commercial Fishery," DEOS Working Papers, Athens University of Economics and Business 1303, Athens University of Economics and Business.
  6. Carmen Camacho & Agustín Pérez-Barahona, 2012. "Land use dynamics and the environment," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers), HAL halshs-00674020, HAL.
  7. Xepapadeas, Anastasios, 2009. "Modelling Complex Systems," 2009 Conference, August 16-22, 2009, Beijing, China, International Association of Agricultural Economists 53216, International Association of Agricultural Economists.
  8. Brock, William & Xepapadeas, Anastasios, 2008. "General Pattern Formation in Recursive Dynamical Systems Models in Economics," MPRA Paper 12305, University Library of Munich, Germany.
  9. Liu, Yanxu & Sims, Charles, 2013. "Spatial-Dynamic Externalities and Coordination in Invasive Species Control," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C., Agricultural and Applied Economics Association 151293, Agricultural and Applied Economics Association.
  10. Anastasios Xepapadeas, . "Diffusion and Spatial Aspects," DEOS Working Papers, Athens University of Economics and Business 1232, Athens University of Economics and Business.
  11. Behringer, Stefan & Upmann, Thorsten, 2014. "Optimal harvesting of a spatial renewable resource," Journal of Economic Dynamics and Control, Elsevier, Elsevier, vol. 42(C), pages 105-120.
  12. William Brock & Anastasios Xepapadeas & Athanasios Yannacopoulos, 2014. "Optimal Control in Space and Time and the Management of Environmental Resources," DEOS Working Papers, Athens University of Economics and Business 1402, Athens University of Economics and Business.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:eee:jeeman:v:59:y:2010:i:2:p:149-164. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.