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Ecosystems, externalities, and economies

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Author Info
Thomas Crocker
John Tschirhart
Abstract

This paper incorporates an ecosystem model into a model of a simple economy. The decisionmaking agents in the ecosystem are individual organisms aggregated to the species level. A species may provide utility directly to humans, or it may provide utility indirectly because it is used either as a raw material in goods fabrication or as sustenance for other species. We describe a comparative static equilibrium of the ecosystem where species' demands for other species are equal to the supplies of those other species, and energy is conserved. The ecosystem is then embedded in the economy so that the effects of human intervention can be traced through both the ecosystem and the economy. Human intervention creates ecosystem externalities such that ecosystem equilibria are shifted and the new equilibria affect the utility or the production processes of other humans. This framework allows us to describe in principle which ecosystem services can be efficiently usurped by humans, which waste flows can be efficiently allowed into ecosystems, and which ecosystem organisms and physical attributes can be efficiently maintained. Copyright Kluwer Academic Publishers 1992

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File URL: http://hdl.handle.net/10.1007/BF00330283
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Publisher Info
Article provided by European Association of Environmental and Resource Economists in its journal Environmental & Resource Economics.

Volume (Year): 2 (1992)
Issue (Month): 6 (November)
Pages: 551-567
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Handle: RePEc:kap:enreec:v:2:y:1992:i:6:p:551-567

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Related research
Keywords: Ecosystems; externalities; economies; sustainable development;

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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. Hof, John & Rideout, Doug & Binkley, Dan, 1990. "Carbon fixation in trees as a micro optimization process: an example of combining ecology and economics," Ecological Economics, Elsevier, vol. 2(3), pages 243-256, October. [Downloadable!] (restricted)
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  1. Thomas Christiaans & Thomas Eichner & Rüdiger Pethig, 2005. "A micro-level ‘consumer approach’ to species population dynamics," Volkswirtschaftliche Diskussionsbeitraege 123-05, Universität Siegen, Fachbereich Wirtschaftswissenschaften, Wirtschaftsinformatik und Wirtschaftsrecht. [Downloadable!]
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  2. Swallow, Stephen K., 1996. "Economic Issues In Ecosystem Management: An Introduction And Overview," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 25(2), October. [Downloadable!]
  3. Shogren, Jason F. & Finnoff, David & McIntosh, Chris & Settle, Chad, 2006. "Integration-Valuation Nexus in Invasive Species Policy," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 35(1), April. [Downloadable!]
  4. Thomas Christiaans & Thomas Eichner & Rüdiger Pethig, 2005. "Optimal pest control in agriculture," Volkswirtschaftliche Diskussionsbeitraege 122-05, Universität Siegen, Fachbereich Wirtschaftswissenschaften, Wirtschaftsinformatik und Wirtschaftsrecht. [Downloadable!]
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  5. Horan, Richard D. & Shogren, Jason F. & Gramig, Benjamin M., 2006. "Wildlife Conservation Payments to Address Habitat Fragmentation and Disease Risks," 2006 Annual meeting, July 23-26, Long Beach, CA 21076, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association). [Downloadable!]
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  6. Thomas Eichner & Rüdiger Pethig, 2007. "Harvesting in an integrated general equilibrium model," Volkswirtschaftliche Diskussionsbeitraege 127-07, Universität Siegen, Fachbereich Wirtschaftswissenschaften, Wirtschaftsinformatik und Wirtschaftsrecht. [Downloadable!]
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