IDEAS home Printed from https://ideas.repec.org/a/eee/resene/v33y2011i2p355-365.html
   My bibliography  Save this article

The devil in the details: Non-convexities in ecosystem service provision

Author

Listed:
  • Brown, Gardner
  • Patterson, Trista
  • Cain, Nicholas

Abstract

Standard economic theory is built on key assumptions regarding concavity and convexity, particular with respect to the production possibility frontier. Non-convexity is readily demonstrated using a two species conventional model. Now that ecosystem services are growing in prominence it is important to confirm that typical natural resource production relations obey these conditions. If not, innocently prescribing price or allocation policies can lead to a minimum rather than a maximum or to wrong equilibrium solutions in general. This is a particular danger in decentralized pricing systems.

Suggested Citation

  • Brown, Gardner & Patterson, Trista & Cain, Nicholas, 2011. "The devil in the details: Non-convexities in ecosystem service provision," Resource and Energy Economics, Elsevier, vol. 33(2), pages 355-365, May.
    • Handle: RePEc:eee:resene:v:33:y:2011:i:2:p:355-365
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0928-7655(10)00044-8
    Download Restriction: Full text for ScienceDirect subscribers only
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Karl-Göran Mäler & Anastasios Xepapadeas & Aart de Zeeuw, 2003. "The Economics of Shallow Lakes," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 26(4), pages 603-624, December.
    2. Nanang, David M. & Hauer, Grant K., 2008. "Integrating a random utility model for non-timber forest users into a strategic forest planning model," Journal of Forest Economics, Elsevier, vol. 14(2), pages 133-153, April.
    3. Martin L. Weitzman, 1974. "Prices vs. Quantities," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 41(4), pages 477-491.
    4. de Groot, Rudolf S. & Wilson, Matthew A. & Boumans, Roelof M. J., 2002. "A typology for the classification, description and valuation of ecosystem functions, goods and services," Ecological Economics, Elsevier, vol. 41(3), pages 393-408, June.
    5. Nalle, Darek J. & Montgomery, Claire A. & Arthur, Jeffrey L. & Polasky, Stephen & Schumaker, Nathan H., 2004. "Modeling joint production of wildlife and timber," Journal of Environmental Economics and Management, Elsevier, vol. 48(3), pages 997-1017, November.
    6. Wossink, Ada & Swinton, Scott M., 2007. "Jointness in production and farmers' willingness to supply non-marketed ecosystem services," Ecological Economics, Elsevier, vol. 64(2), pages 297-304, December.
    7. Brown, Gardner, Jr, 1974. "An Optimal Program for Managing Common Property Resources with Congestion Externalities," Journal of Political Economy, University of Chicago Press, vol. 82(1), pages 163-173, Jan.-Feb..
    8. Anthony C. Fisher & John V. Krutilla, 1975. "Resource Conservation, Environmental Preservation, and the Rate of Discount," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 89(3), pages 358-370.
    9. Boyd, James & Banzhaf, Spencer, 2007. "What are ecosystem services? The need for standardized environmental accounting units," Ecological Economics, Elsevier, vol. 63(2-3), pages 616-626, August.
    10. Misra, Dinesh & Kant, Shashi, 2005. "Economic efficiency and shadow prices of social and biological outputs of village-level organizations of joint forest management in Gujarat, India," Journal of Forest Economics, Elsevier, vol. 11(3), pages 141-160, December.
    11. Bjørndal, Mette & Jörnsten, Kurt, 2008. "Equilibrium prices supported by dual price functions in markets with non-convexities," European Journal of Operational Research, Elsevier, vol. 190(3), pages 768-789, November.
    12. Sterner, Thomas, 2007. "Unobserved diversity, depletion and irreversibility The importance of subpopulations for management of cod stocks," Ecological Economics, Elsevier, vol. 61(2-3), pages 566-574, March.
    13. Partha Dasgupta & Karl-Göran Mäler, 2003. "The Economics of Non-Convex Ecosystems: Introduction," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 26(4), pages 499-525, December.
    14. Norgaard, Richard B. & Jin, Ling, 2008. "Trade and the governance of ecosystem services," Ecological Economics, Elsevier, vol. 66(4), pages 638-652, July.
    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


    Cited by:

    1. Lambini, Cosmas Kombat & Nguyen, Trung Thanh & Abildtrup, Jens & Pham, Van Dien & Tenhunen, John & Garcia, Serge, 2018. "Are Ecosystem Services Complementary or Competitive? An Econometric Analysis of Cost Functions of Private Forests in Vietnam," Ecological Economics, Elsevier, vol. 147(C), pages 343-352.
    2. Barbara Langlois & Vincent Martinet, 2023. "Defining cost-effective ways to improve ecosystem services provision in agroecosystems," Review of Agricultural, Food and Environmental Studies, Springer, vol. 104(2), pages 123-165, June.
    3. Horatiu A. Rus, 2016. "Renewable Resources, Pollution and Trade," Review of International Economics, Wiley Blackwell, vol. 24(2), pages 364-391, May.
    4. A. Ruijs & M. Kortelainen & A. Wossink & C.J.E. Schulp & R. Alkemade & Paul Madden, 2012. "Opportunity cost estimation of ecosystem services," Economics Discussion Paper Series 1222, Economics, The University of Manchester.
    5. Finnoff, David & Horan, Richard D. & Shogren, Jason F. & Reeling, Carson & Berry, Kevin, 2016. "Natural vs anthropogenic risk reduction: Facing invasion risks involving multi-stable outcomes," Journal of Economic Behavior & Organization, Elsevier, vol. 132(PB), pages 113-123.
    6. Ruijs, A. & Wossink, A. & Kortelainen, M. & Alkemade, R. & Schulp, C.J.E., 2013. "Trade-off analysis of ecosystem services in Eastern Europe," Ecosystem Services, Elsevier, vol. 4(C), pages 82-94.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. A. Ruijs & M. Kortelainen & A. Wossink & C.J.E. Schulp & R. Alkemade & Paul Madden, 2012. "Opportunity cost estimation of ecosystem services," Economics Discussion Paper Series 1222, Economics, The University of Manchester.
    2. Ian Bateman & Georgina Mace & Carlo Fezzi & Giles Atkinson & Kerry Turner, 2011. "Economic Analysis for Ecosystem Service Assessments," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 48(2), pages 177-218, February.
    3. Turner, Katrine Grace & Anderson, Sharolyn & Gonzales-Chang, Mauricio & Costanza, Robert & Courville, Sasha & Dalgaard, Tommy & Dominati, Estelle & Kubiszewski, Ida & Ogilvy, Sue & Porfirio, Luciana &, 2016. "A review of methods, data, and models to assess changes in the value of ecosystem services from land degradation and restoration," Ecological Modelling, Elsevier, vol. 319(C), pages 190-207.
    4. Lambini, Cosmas Kombat & Nguyen, Trung Thanh & Abildtrup, Jens & Pham, Van Dien & Tenhunen, John & Garcia, Serge, 2018. "Are Ecosystem Services Complementary or Competitive? An Econometric Analysis of Cost Functions of Private Forests in Vietnam," Ecological Economics, Elsevier, vol. 147(C), pages 343-352.
    5. Jansson, Åsa, 2013. "Reaching for a sustainable, resilient urban future using the lens of ecosystem services," Ecological Economics, Elsevier, vol. 86(C), pages 285-291.
    6. Gerner, Nadine V. & Nafo, Issa & Winking, Caroline & Wencki, Kristina & Strehl, Clemens & Wortberg, Timo & Niemann, André & Anzaldua, Gerardo & Lago, Manuel & Birk, Sebastian, 2018. "Large-scale river restoration pays off: A case study of ecosystem service valuation for the Emscher restoration generation project," Ecosystem Services, Elsevier, vol. 30(PB), pages 327-338.
    7. Bo Yang & Ming-Han Li & Shujuan Li, 2013. "Design-with-Nature for Multifunctional Landscapes: Environmental Benefits and Social Barriers in Community Development," IJERPH, MDPI, vol. 10(11), pages 1-26, October.
    8. Pistorius, Till & Schaich, Harald & Winkel, Georg & Plieninger, Tobias & Bieling, Claudia & Konold, Werner & Volz, Karl-Reinhard, 2012. "Lessons for REDDplus: A comparative analysis of the German discourse on forest functions and the global ecosystem services debate," Forest Policy and Economics, Elsevier, vol. 18(C), pages 4-12.
    9. Huber, Robert & Lehmann, Bernard, 2010. "Economies of Scope in the Agricultural Provision of Ecosystem Services: An Application to a High Cost Production Region," German Journal of Agricultural Economics, Humboldt-Universitaet zu Berlin, Department for Agricultural Economics, vol. 59(02), pages 1-15, June.
    10. Aevermann Tim & Schmude Jürgen, 2015. "Quantification and monetary valuation of urban ecosystem services in Munich, Germany," ZFW – Advances in Economic Geography, De Gruyter, vol. 59(3), pages 188-200, December.
    11. Braat, Leon C. & de Groot, Rudolf, 2012. "The ecosystem services agenda:bridging the worlds of natural science and economics, conservation and development, and public and private policy," Ecosystem Services, Elsevier, vol. 1(1), pages 4-15.
    12. Mateo Cordier & José Pérez Agúndez & Walter Hecq & Bertrand Hamaide, 2013. "A guiding framework for ecosystem services monetization in ecological-economic modeling," Working Papers CEB 13-018, ULB -- Universite Libre de Bruxelles.
    13. Christian Elleby & Frank Jensen, 2018. "How Many Instruments Do We Really Need? A First-Best Optimal Solution to Multiple Objectives with Fisheries Regulation," IFRO Working Paper 2018/05, University of Copenhagen, Department of Food and Resource Economics.
    14. Jiayi Zhou & Kangning Xiong & Qi Wang & Jiuhan Tang & Li Lin, 2022. "A Review of Ecological Assets and Ecological Products Supply: Implications for the Karst Rocky Desertification Control," IJERPH, MDPI, vol. 19(16), pages 1-20, August.
    15. Deal, Robert L. & Cochran, Bobby & LaRocco, Gina, 2012. "Bundling of ecosystem services to increase forestland value and enhance sustainable forest management," Forest Policy and Economics, Elsevier, vol. 17(C), pages 69-76.
    16. Vejre, H. & Vesterager, J.P. & Andersen, P.S. & Olafsson, A.S. & Brandt, J. & Dalgaard, T., 2015. "Does cadastral division of area-based ecosystem services obstruct comprehensive management?," Ecological Modelling, Elsevier, vol. 295(C), pages 176-187.
    17. Gardner Brown, 2000. "Renewable Natural Resource Management and Use Without Markets," Working Papers 0025, University of Washington, Department of Economics.
    18. Martin D. Smith & Larry B. Crowder, 2011. "Valuing Ecosystem Services with Fishery Rents: A Lumped-Parameter Approach to Hypoxia in the Neuse River Estuary," Sustainability, MDPI, vol. 3(11), pages 1-39, November.
    19. Häyhä, Tiina & Franzese, Pier Paolo & Paletto, Alessandro & Fath, Brian D., 2015. "Assessing, valuing, and mapping ecosystem services in Alpine forests," Ecosystem Services, Elsevier, vol. 14(C), pages 12-23.
    20. Egoh, Benis & Rouget, Mathieu & Reyers, Belinda & Knight, Andrew T. & Cowling, Richard M. & van Jaarsveld, Albert S. & Welz, Adam, 2007. "Integrating ecosystem services into conservation assessments: A review," Ecological Economics, Elsevier, vol. 63(4), pages 714-721, September.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:resene:v:33:y:2011:i:2:p:355-365. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/inca/505569 .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.