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The Economics of Shallow Lakes

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Author Info
Karl-Göran Mäler
Anastasios Xepapadeas
Aart de Zeeuw ()

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Abstract

Ecological systems such as shallow lakes areusually non-linear and display discontinuitiesand hysteresis in their behaviour. Thesesystems often also provide conflicting servicesas a resource and a waste sink. This impliesthat the economic analysis of these systemsrequires to solve a non-standard optimalcontrol problem or, in case of a commonproperty resource, a non-standard differentialgame. This paper provides the optimalmanagement solution and the open-loop Nashequilibrium for a dynamic economic analysis ofthe model for a shallow lake. It alsoinvestigates whether it is possible to induceoptimal management in case of common use of thelake, by means of a tax. Finally, some remarksare made on the feedback Nash equilibrium. Copyright Kluwer Academic Publishers 2003

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File URL: http://hdl.handle.net/10.1023/B:EARE.0000007351.99227.42
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Publisher Info
Article provided by European Association of Environmental and Resource Economists in its journal Environmental and Resource Economics.

Volume (Year): 26 (2003)
Issue (Month): 4 (December)
Pages: 603-624
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Handle: RePEc:kap:enreec:v:26:y:2003:i:4:p:603-624

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Web page: http://www.springerlink.com/link.asp?id=100263

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Related research
Keywords: ecological systems; non-linear differential games;

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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.:
  1. Dockner Engelbert J. & Van Long Ngo, 1993. "International Pollution Control: Cooperative versus Noncooperative Strategies," Journal of Environmental Economics and Management, Elsevier, vol. 25(1), pages 13-29, July. [Downloadable!] (restricted)
  2. Frederick Ploeg & Aart Zeeuw, 1992. "International aspects of pollution control," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 2(2), pages 117-139, March. [Downloadable!] (restricted)
  3. Brock, William A. & de Zeeuw, Aart, 2002. "The repeated lake game," Economics Letters, Elsevier, vol. 76(1), pages 109-114, June. [Downloadable!] (restricted)
  4. repec:att:wimass:1920026 is not listed on IDEAS
  5. Kiminori Matsuyama, 1990. "Increasing Returns, Industrialization and Indeterminacy of Equilibrium," Discussion Papers 878, Northwestern University, Center for Mathematical Studies in Economics and Management Science. [Downloadable!]
    Other versions:
  6. Tsutsui, Shunichi & Mino, Kazuo, 1990. "Nonlinear strategies in dynamic duopolistic competition with sticky prices," Journal of Economic Theory, Elsevier, vol. 52(1), pages 136-161, October. [Downloadable!] (restricted)
  7. Krugman, Paul, 1991. "History versus Expectations," The Quarterly Journal of Economics, MIT Press, vol. 106(2), pages 651-67, May. [Downloadable!] (restricted)
  8. Van Der Ploeg, F. & De Zeeuw, A.J., 1990. "International Aspects Of Pollution Control," Papers 9065, Tilburg - Center for Economic Research.
  9. Monderer, Dov & Shapley, Lloyd S., 1996. "Potential Games," Games and Economic Behavior, Elsevier, vol. 14(1), pages 124-143, May. [Downloadable!] (restricted)
  10. Skiba, A K, 1978. "Optimal Growth with a Convex-Concave Production Function," Econometrica, Econometric Society, vol. 46(3), pages 527-39, May. [Downloadable!] (restricted)
Full references

Cited by:
(explanations, 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.)

  1. Marita Laukkanen & Anni Huhtala, 2008. "Optimal management of a eutrophied coastal ecosystem: balancing agricultural and municipal abatement measures," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 39(2), pages 139-159, February. [Downloadable!] (restricted)
    Other versions:
  2. Richard Horan & Erwin Bulte, 2004. "Optimal and Open Access Harvesting of Multi-Use Species in a Second-Best World," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 28(3), pages 251-272, July. [Downloadable!] (restricted)
  3. XEPAPADEAS, Anastasios, 2009. "Modeling Complex Systems," MPRA Paper 17498, University Library of Munich, Germany. [Downloadable!]
  4. Deb, Rahul, 2008. "Interdependent Preferences, Potential Games and Household Consumption," MPRA Paper 6818, University Library of Munich, Germany. [Downloadable!]
  5. Salerno, Gillian & Beard, Rodney & McDonald, Stuart, 2007. "Rent Seeking Behavior and Optimal Taxation of Pollution in Shallow Lakes," MPRA Paper 11225, University Library of Munich, Germany, revised 22 Oct 2008. [Downloadable!]
  6. Dockner, E.J. & Wagener, F.O.O., 2006. "Markov-Perfect Nash Equilibria in Models With a Single Capital Stock," CeNDEF Working Papers 06-07, Universiteit van Amsterdam, Center for Nonlinear Dynamics in Economics and Finance. [Downloadable!]
    Other versions:
  7. Jeroen Bergh, 2007. "Evolutionary thinking in environmental economics," Journal of Evolutionary Economics, Springer, vol. 17(5), pages 521-549, October. [Downloadable!] (restricted)
  8. W. Davis Dechert & Sharon I. O'Donnell & William A. Brock, 2006. "Learning Parameters in Non Linear Ecological Models," Computing in Economics and Finance 2006 258, Society for Computational Economics. [Downloadable!]
  9. Anne-Sophie Crépin & Therese Lindahl, 2009. "Grazing Games: Sharing Common Property Resources with Complex Dynamics," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 44(1), pages 29-46, September. [Downloadable!] (restricted)
  10. Katarina Elofsson, 2007. "Cost Uncertainty and Unilateral Abatement," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 36(2), pages 143-162, February. [Downloadable!] (restricted)
  11. Anne Sophie Crépin, 2003. "Management Challenges for Multiple-Species Boreal Forests," Working Papers 2003.106, Fondazione Eni Enrico Mattei. [Downloadable!]
  12. Wagener, F.O.O., 2004. "Skiba points for small discount rates," CeNDEF Working Papers 04-09, Universiteit van Amsterdam, Center for Nonlinear Dynamics in Economics and Finance. [Downloadable!]
  13. Colin Rowat, 2005. "Non-Linear Strategies in a Linear Quadratic Differential Game," Discussion Papers 05-05, Department of Economics, University of Birmingham.
    Other versions:
  14. Ranjan, Ram & Shortle, James & Marshall, Liz, 2003. "The Relevance and Implications of the Environmental Kuznets Curve Under Stock Effects and Non-Linearities: A Hysteresis Based Approach," 2003 Annual meeting, July 27-30, Montreal, Canada 22147, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association). [Downloadable!]
  15. repec:att:wimass:1920324 is not listed on IDEAS
  16. Kemp, R. & van den Bergh, J., 2006. "Economics and Transitions: Lessons from Economic Sub-disciplines," UNU-MERIT Working Paper Series 038, United Nations University, Maastricht Economic and social Research and training centre on Innovation and Technology. [Downloadable!]
  17. Anne Sophie Crépin, 2003. "Threshold Effects in Coral Reef Fisheries," Working Papers 2003.107, Fondazione Eni Enrico Mattei. [Downloadable!]
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