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Economic Land Use, Ecosystem Services and Microfounded Species Dynamics

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Author Info
Thomas Eichner ()
Rüdiger Pethig ()

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Abstract

In 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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Publisher Info
Paper provided by CESifo Group Munich in its series CESifo Working Paper Series with number CESifo Working Paper No. 1269.

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Date of creation: 2004
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Handle: RePEc:ces:ceswps:_1269

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Related research
Keywords: land use; ecosystem dynamics; biodiversity; ecosystem services;

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Find related papers by JEL classification:
O24 - Economic Development, Technological Change, and Growth - - Development Planning and Policy - - - Trade Policy; Factor Movement; Foreign Exchange Policy
O57 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

  1. Thomas Eichner & Ruediger Pethig, 2003. "A Microfoundation of Predator-Prey Dynamics," CESifo Working Paper Series CESifo Working Paper No. , CESifo Group Munich. [Downloadable!]
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  2. Partha Dasgupta & Karl-Göran Mäler, 2003. "The Economics of Non-Convex Ecosystems: Introduction," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 26(4), pages 499-525, December. [Downloadable!] (restricted)
  3. Jérôme Chave & Simon Levin, 2003. "Scale and Scaling in Ecological and Economic Systems," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 26(4), pages 527-557, December. [Downloadable!] (restricted)
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Thomas Christiaans & Thomas Eichner & Rüdiger Pethig, 2005. "A micro-level ‘consumer approach’ to species population dynamics," Volkswirtschaftliche Diskussionsbeitraege 123-05, Universität Siegen, Fachbereich Wirtschaftswissenschaften, Wirtschaftsinformatik und Wirtschaftsrecht. [Downloadable!]
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  2. Hertzler, Greg, 2008. "Dynamic Contingent Valuation and Choice Modelling for Ecosystem Services," 2008 Conference (52nd), February 5-8, 2008, Canberra, Australia 6024, Australian Agricultural and Resource Economics Society. [Downloadable!]
  3. Thomas Christiaans & Thomas Eichner & Rüdiger Pethig, 2005. "Optimal pest control in agriculture," Volkswirtschaftliche Diskussionsbeitraege 122-05, Universität Siegen, Fachbereich Wirtschaftswissenschaften, Wirtschaftsinformatik und Wirtschaftsrecht. [Downloadable!]
    Other versions:
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