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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.

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File URL: http://purl.umn.edu/21619
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Bibliographic Info

Paper provided by American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association) in its series 1999 Annual meeting, August 8-11, Nashville, TN with number 21619.

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Date of creation: 1999
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Handle: RePEc:ags:aaea99:21619

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Related research

Keywords: Eutrophication Thresholds; Environmental Economics and Policy; Resource /Energy Economics and Policy;

References

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  1. Charles Perrings & David Pearce, 1994. "Threshold effects and incentives for the conservation of biodiversity," Environmental & Resource Economics, 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.
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Cited by:
  1. 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.
  2. 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.
  3. 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.
  4. 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.

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