Economic Land Use, Ecosystem Services and Microfounded Species Dynamics
AbstractIn an integrated economy-ecosystem model humans choose their land use and leave the residual land as habitat for three species forming a food chain. The size of habitat determines the diversity and abundance of species. That biodiversity generates, in turn, a flow of ecosystem services with public-good characteristics for human consumption. The ecosystem submodel yields (rather than assumes!) population growth functions with each species’ growth depending on the size of habitat. First the relationship between habitat and species growth (sustenance, decline and extinction) is explored. The laissez-faire economy is shown to result in an underprovision of habitat, making the case for land use restrictions for nature protection. The optimal land use policy is characterized with full regard of ecosystem dynamics. Finally, labor-augmenting technical change is introduced to generate ever increasing pressure towards further habitat reductions. In the laissez-faire economy the habitat is consequently squeezed to zero in the long-run so that all species are doomed. Social optimality demands, however, to refrain from using all land for economic purposes despite ever-growing labor productivity.
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Bibliographic InfoPaper provided by CESifo Group Munich in its series CESifo Working Paper Series with number 1269.
Date of creation: 2004
Date of revision:
land use; ecosystem dynamics; biodiversity; ecosystem services;
Other versions of this item:
- Eichner, Thomas & Pethig, Rudiger, 2006. "Economic land use, ecosystem services and microfounded species dynamics," Journal of Environmental Economics and Management, Elsevier, vol. 52(3), pages 707-720, November.
- Thomas Eichner & Rüdiger Pethig, 2004. "Economic land use, ecosystem services and microfounded species dynamics," Volkswirtschaftliche DiskussionsbeitrÃ¤ge 116-04, Universität Siegen, Fakultät Wirtschaftswissenschaften, Wirtschaftsinformatik und Wirtschaftsrecht.
- Q24 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Land
- Q57 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Ecological Economics
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