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Optimal Regulation Of Eutrophying Lakes, Fjords And Rivers In The Presence Of Threshold Effects

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  • Naevdal, Eric

Abstract

In a large number of practical environmental regulation problems, the damage done by pollutants depends on stocks and/or flows of pollutants exceeding certain thresholds. A typical example is eutrophication which occur when stocks of nutrients in a lake exceeds a certain threshold. The present paper presents a model of eutrophication that accounts for such thresholds. The paper does so by applying a novel technique in optimal control theory that allows for the analysis of systems where state-variables bounce back and forth over thresholds that take the form of functions of time and state-variables.

Suggested Citation

  • Naevdal, Eric, 1999. "Optimal Regulation Of Eutrophying Lakes, Fjords And Rivers In The Presence Of Threshold Effects," 1999 Annual meeting, August 8-11, Nashville, TN 21619, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    • Handle: RePEc:ags:aaea99:21619
    DOI: 10.22004/ag.econ.21619
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    1. Charles Perrings & David Pearce, 1994. "Threshold effects and incentives for the conservation of biodiversity," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 4(1), pages 13-28, February.
    2. Farzin, Y. H., 1996. "Optimal pricing of environmental and natural resource use with stock externalities," Journal of Public Economics, Elsevier, vol. 62(1-2), pages 31-57, October.
    3. Sandström, Mikael, 1996. "Recreational Benefits from Improved Water Quality: A Random Utility Model of Swedish Seaside Recreation," SSE/EFI Working Paper Series in Economics and Finance 121, Stockholm School of Economics.
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    1. Brozovic, Nicholas & Schlenker, Wolfram, 2011. "Optimal management of an ecosystem with an unknown threshold," Ecological Economics, Elsevier, vol. 70(4), pages 627-640, February.
    2. Michael Margolis & Eric Nævdal, 2008. "Safe Minimum Standards in Dynamic Resource Problems: Conditions for Living on the Edge of Risk," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 40(3), pages 401-423, July.
    3. Crépin, Anne-Sophie & Norberg, Jon & Mäler, Karl-Göran, 2011. "Coupled economic-ecological systems with slow and fast dynamics -- Modelling and analysis method," Ecological Economics, Elsevier, vol. 70(8), pages 1448-1458, June.
    4. Nuppenau, Ernst-August, 2008. "On The Inclusion Of Nature And Its Dynamics In Farmers' Objective Functions For Eco-System Services Provision: A New Strategy In Bio-Economic Modeling," 107th Seminar, January 30-February 1, 2008, Sevilla, Spain 6653, European Association of Agricultural Economists.
    5. Marita Laukkanen & Anni Huhtala, 2008. "Optimal management of a eutrophied coastal ecosystem: balancing agricultural and municipal abatement measures," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 39(2), pages 139-159, February.
    6. Polasky, Stephen & de Zeeuw, Aart & Wagener, Florian, 2011. "Optimal management with potential regime shifts," Journal of Environmental Economics and Management, Elsevier, vol. 62(2), pages 229-240, September.
    7. Hart, Rob, 2003. "Dynamic pollution control--time lags and optimal restoration of marine ecosystems," Ecological Economics, Elsevier, vol. 47(1), pages 79-93, November.
    8. Laukkanen, Marita & Huhtala, Anni, 2005. "Optimal Control of Nutrient Pollution in a Coastal Ecosystem: Agricultural Abatement versus Investment in Wastewater Treatment Capacity," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24451, European Association of Agricultural Economists.
    9. Pim Heijnen & Lammertjan Dam, 2019. "Catastrophe and Cooperation," Dynamic Games and Applications, Springer, vol. 9(1), pages 122-141, March.
    10. Naevdal, Eric, 2006. "Dynamic optimisation in the presence of threshold effects when the location of the threshold is uncertain - with an application to a possible disintegration of the Western Antarctic Ice Sheet," Journal of Economic Dynamics and Control, Elsevier, vol. 30(7), pages 1131-1158, July.
    11. Katarina Elofsson, 2007. "Cost Uncertainty and Unilateral Abatement," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 36(2), pages 143-162, February.
    12. Sergey Rabotyagov & Catherine L. Kling & Philip W. Gassman & Nancy N. Rabalais & R. Eugene Turner, 2012. "Economics of Dead Zones: Linking Externalities from the Land to their Consequences in the Sea, The," Center for Agricultural and Rural Development (CARD) Publications 12-wp534, Center for Agricultural and Rural Development (CARD) at Iowa State University.
    13. Anne Sophie Crépin, 2003. "Threshold Effects in Coral Reef Fisheries," Working Papers 2003.107, Fondazione Eni Enrico Mattei.
    14. Hein, Lars, 2006. "Cost-efficient eutrophication control in a shallow lake ecosystem subject to two steady states," Ecological Economics, Elsevier, vol. 59(4), pages 429-439, October.
    15. Elofsson, Katarina & Folmer, Henk & Gren, Ing-Marie, 2003. "Management of eutrophicated coastal ecosystems: a synopsis of the literature with emphasis on theory and methodology," Ecological Economics, Elsevier, vol. 47(1), pages 1-11, November.

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