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Using Optimal Control To Characterize The Economic And Ecological Implications Of Spatial Externalities

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  • Marshall, Elizabeth P.
  • Homans, Frances R.

Abstract

This study uses optimal control theory to examine the dynamic features of agricultural landscapes characterized by spatial externalites. A stylized system of agricultural production and groundwater flow is used to illustrate how spatial externalities affect land use decisions over time. Policy alternatives are also considered.

Suggested Citation

  • Marshall, Elizabeth P. & Homans, Frances R., 2001. "Using Optimal Control To Characterize The Economic And Ecological Implications Of Spatial Externalities," 2001 Annual meeting, August 5-8, Chicago, IL 20654, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    • Handle: RePEc:ags:aaea01:20654
    DOI: 10.22004/ag.econ.20654
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    References listed on IDEAS

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    3. Baumol,William J. & Oates,Wallace E., 1988. "The Theory of Environmental Policy," Cambridge Books, Cambridge University Press, number 9780521322249, January.
    4. Henderson, J. V., 1977. "Externalities in a spatial context : The case of air pollution," Journal of Public Economics, Elsevier, vol. 7(1), pages 89-110, February.
    5. 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, vol. 24(1), pages 143-163, January.
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