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Solving Empirical Bioeconomic Models: A Rangeland Management Application

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  • Richard B. Standiford
  • Richard E. Howitt

Abstract

An empirical bioeconomic model was developed for private ranches conducting firewood, cattle, and hunting enterprises on California's hardwood rangelands. Hunting, forage, cattle, and oak firewood production functions were derived. Nonlinear optimal control was used to solve for two state and four control variables to give optimal time pathways for oak density and cattle stocking. Risk was considered through use of chance constraints, rainfall variability, and price expectations. Commercial hunting is shown to be the dominant economic value on these rangelands. Inclusion of stochastics shifts production away from cattle to less risky firewood and hunting enterprises.

Suggested Citation

  • Richard B. Standiford & Richard E. Howitt, 1992. "Solving Empirical Bioeconomic Models: A Rangeland Management Application," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 74(2), pages 421-433.
    • Handle: RePEc:oup:ajagec:v:74:y:1992:i:2:p:421-433.
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    1. Inocencio Rodriguez & Gerard D'Souza & Thomas Griggs, 2013. "Can Spatial Dependence Enhance Industry Sustainability? The Case of Pasture-Based Beef," Working Papers Working Paper 2013-04, Regional Research Institute, West Virginia University.
    2. Ewert, Frank & van Ittersum, Martin K. & Bezlepkina, Irina V. & Oude Lansink, Alfons G.J.M. & Brouwer, Floor M. & Andersen, Erling & Flichman, Guillermo & Heckelei, Thomas & Olsson, Johanna Alkan & Ol, 2005. "Development of a conceptual framework for integrated analysis and assessment of agricultural systems in SEAMLESS-IF," Reports 9287, Wageningen University, SEAMLESS: System for Environmental and Agricultural Modelling; Linking European Science and Society.
    3. Zhao, Zishun & Wahl, Thomas I. & Marsh, Thomas L., 2006. "Invasive Species Management: Foot-and-Mouth Disease in the U.S. Beef Industry," Agricultural and Resource Economics Review, Cambridge University Press, vol. 35(1), pages 98-115, April.
    4. Börner, Jan & Higgins, Steven I. & Scheiter, Simon & Kantelhardt, Jochen, 2013. "Approximating Optimal Numerical Solutions to Bio-economic Systems: How Useful is Simulation-optimization?," Quarterly Journal of International Agriculture, Humboldt-Universitaat zu Berlin, vol. 52(3), pages 1-20, August.
    5. Cerdá, Emilio & Martín-Barroso, David, 2013. "Optimal control for forest management and conservation analysis in dehesa ecosystems," European Journal of Operational Research, Elsevier, vol. 227(3), pages 515-526.
    6. Börner, Jan & Higgins, Steven Ian & Scheiter, Simon & Kantelhardt, Jochen, 2009. "Approximating optimal numerical solutions to bio-economic systems: How useful is simulation-optimization?," 2009 Conference, August 16-22, 2009, Beijing, China 51407, International Association of Agricultural Economists.
    7. Jose L. Oviedo & Lynn Huntsinger & Pablo Campos & Alejandro Caparrós, 2011. "Assessing the income value of private amenities in California oak woodlands," Working Papers 1110, Instituto de Políticas y Bienes Públicos (IPP), CSIC.
    8. Schuck, Eric C. & Green, Gareth P., 2002. "The Importance Of Tariff Structure In Conservation Pricing," 2002 Annual Meeting, July 28-31, 2002, Long Beach, California 36607, Western Agricultural Economics Association.
    9. repec:rri:wpaper:201304 is not listed on IDEAS
    10. Guillermo Flichman & Florence Jacquet, 2003. "Le couplage des modèles agronomiques et économiques : intérêt pour l'analyse des politiques," Cahiers d'Economie et Sociologie Rurales, INRA Department of Economics, vol. 67, pages 51-69.
    11. Bicknell, Kathryn & Wilen, James E. & Howitt, Richard E., 1999. "Public policy and private incentives for livestock disease control," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 43(4), pages 1-21, December.
    12. Wilcox, Steven W. & Barrett, Christopher B. & Jensen, Nathaniel & Sun, Ying & Clark, Patrick & Soto, Gerardo E. & Kahiu, Njoki & Fava, Francesco P. & Porter, Benjamin, 2023. "The Environmental Impacts of Microfinance: An Empirical Study of Index-Based Livestock Insurance and East African Rangelands," 2023 Annual Meeting, July 23-25, Washington D.C. 335917, Agricultural and Applied Economics Association.
    13. Guillermo Flichman & Florence Jacquet, 2003. "Le couplage des modèles agronomiques et économiques : intérêt pour l'analyse des politiques," Post-Print hal-01201042, HAL.
    14. Cacho, Oscar J. & Greiner, Romy & Fulloon, Lachlan, 2001. "An economic analysis of farm forestry as a means of controlling dryland salinity," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 45(2), pages 1-24.
    15. Flichman, Guillermo & Jacquet, Florence, 2003. "Le couplage des modèles agronomiques et économiques : intérêt pour l'analyse des politiques," Cahiers d'Economie et de Sociologie Rurales (CESR), Institut National de la Recherche Agronomique (INRA), vol. 67.
    16. Kazmierczak, Richard F., Jr., 1996. "Optimizing Complex Bioeconomic Simulations Using An Efficient Search Heuristic," DAE Research Reports 31661, Louisiana State University, Department of Agricultural Economics and Agribusiness.
    17. Jan Börner & Steven I. Higgins & Jochen Kantelhardt & Simon Scheiter, 2007. "Rainfall or price variability: what determines rangeland management decisions? A simulation‐optimization approach to South African savannas," Agricultural Economics, International Association of Agricultural Economists, vol. 37(2‐3), pages 189-200, September.
    18. Baerenklau, Kenneth A. & Nergis, Nermin, 2006. "Controlling Dairy Nitrogen Emissions: A Dynamic Analysis of Herd Adjustment, Ground Water Discharges, and Air Emissions," 2006 Annual meeting, July 23-26, Long Beach, CA 21448, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    19. Schumacher, Sara K. & Marsh, Thomas L. & Williams, Kimberly A., 2003. "Optimal Pest Control In Floriculture Production Of Ornamental Crops," 2003 Annual Meeting, February 1-5, 2003, Mobile, Alabama 35025, Southern Agricultural Economics Association.
    20. Kenneth A. Baerenklau & Nermin Nergis & Kurt A. Schwabe, 2008. "Effects of Nutrient Restrictions on Confined Animal Facilities: Insights from a Structural‐Dynamic Model," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 56(2), pages 219-241, June.
    21. Tozer, Peter R. & Huffaker, Ray G., 1999. "Dairy Deregulation And Low-Input Dairy Production: A Bioeconomic Evaluation," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 24(1), pages 1-18, July.
    22. Baerenklau, Kenneth A. & Nergis, Nermin & Schwabe, Kurt A., 2007. "Effects of Nutrient Restrictions on Confined Animal Facilities: Insights from a Structural Model," 2007 Annual Meeting, July 29-August 1, 2007, Portland, Oregon 10253, Western Agricultural Economics Association.
    23. Howitt, Richard E. & Kobayashi, Mimako & Jarvis, Lovell S. & Laca, Emilio A., 2003. "Modeling Extensive Livestock Production Systems: An Application To Sheep Production In Kazakhstan," 2003 Annual meeting, July 27-30, Montreal, Canada 21968, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    24. Thomas, Arthur C. & Boisvert, Richard N., 1995. "The Bioeconomics Of Regulating Nitrates In Groundwater From Agricultural Production Through Taxes, Quantity Restrictions, And Pollution Permits," Research Bulletins 122999, Cornell University, Department of Applied Economics and Management.

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