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The economics of shallow lakes

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Author Info
Maeler, K.G.
Xepapadeas, A.
Zeeuw, A. de (Tilburg University, Center for Economic Research)

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Abstract

Ecological systems such as shallow lakes are usually non-linear and display discontinuities and hysteresis in their behaviour. These systems often also provide conflicting services as a resource and a waste sink. This implies that the economic analysis of these systems requires to solve a non-standard optimal control problem or, in case of a common property resource, a non-standard differential game. This paper provides the optimal management solution and the open-loop Nash equilibrium for a dynamic economic analysis of the model for a shallow lake. It also investigates whether it is possible to induce optimal management in case of common use of the lake, by means of a tax. Furthermore, an interesting property for the feedback Nash equilibrium is derived.

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Paper provided by Tilburg University, Center for Economic Research in its series Discussion Paper with number 69.

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Date of creation: 2000
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Handle: RePEc:dgr:kubcen:200069

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  1. repec:att:wimass:1920026 is not listed on IDEAS
  2. Kiminori Matsuyama, 1990. "Increasing Returns, Industrialization and Indeterminacy of Equilibrium," Discussion Papers 878, Northwestern University, Center for Mathematical Studies in Economics and Management Science. [Downloadable!]
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  3. Tsutsui, Shunichi & Mino, Kazuo, 1990. "Nonlinear strategies in dynamic duopolistic competition with sticky prices," Journal of Economic Theory, Elsevier, vol. 52(1), pages 136-161, October. [Downloadable!] (restricted)
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  6. Frederick Ploeg & Aart Zeeuw, 1992. "International aspects of pollution control," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 2(2), pages 117-139, March. [Downloadable!] (restricted)
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  8. Krugman, Paul, 1991. "History versus Expectations," The Quarterly Journal of Economics, MIT Press, vol. 106(2), pages 651-67, May. [Downloadable!] (restricted)
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  10. Monderer, Dov & Shapley, Lloyd S., 1996. "Potential Games," Games and Economic Behavior, Elsevier, vol. 14(1), pages 124-143, May. [Downloadable!] (restricted)
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  1. Marita Laukkanen & Anni Huhtala, 2008. "Optimal management of a eutrophied coastal ecosystem: balancing agricultural and municipal abatement measures," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 39(2), pages 139-159, February. [Downloadable!] (restricted)
    Other versions:
  2. XEPAPADEAS, Anastasios, 2009. "Modeling Complex Systems," MPRA Paper 17498, University Library of Munich, Germany. [Downloadable!]
  3. Salerno, Gillian & Beard, Rodney & McDonald, Stuart, 2007. "Rent Seeking Behavior and Optimal Taxation of Pollution in Shallow Lakes," MPRA Paper 11225, University Library of Munich, Germany, revised 22 Oct 2008. [Downloadable!]
  4. Anne-Sophie Crépin & Therese Lindahl, 2009. "Grazing Games: Sharing Common Property Resources with Complex Dynamics," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 44(1), pages 29-46, September. [Downloadable!] (restricted)
  5. 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. [Downloadable!] (restricted)
  6. Anne Sophie Crépin, 2003. "Management Challenges for Multiple-Species Boreal Forests," Working Papers 2003.106, Fondazione Eni Enrico Mattei. [Downloadable!]
  7. Wagener, F.O.O., 2004. "Skiba points for small discount rates," CeNDEF Working Papers 04-09, Universiteit van Amsterdam, Center for Nonlinear Dynamics in Economics and Finance. [Downloadable!]
  8. Ranjan, Ram & Shortle, James & Marshall, Liz, 2003. "The Relevance and Implications of the Environmental Kuznets Curve Under Stock Effects and Non-Linearities: A Hysteresis Based Approach," 2003 Annual meeting, July 27-30, Montreal, Canada 22147, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association). [Downloadable!]
  9. repec:att:wimass:1920324 is not listed on IDEAS
  10. Colin Rowat, 2005. "Non-linear strategies in a linear quadratic differential game," GE, Growth, Math methods 0502001, EconWPA. [Downloadable!]
    Other versions:
  11. Anne Sophie Crépin, 2003. "Threshold Effects in Coral Reef Fisheries," Working Papers 2003.107, Fondazione Eni Enrico Mattei. [Downloadable!]
  12. Richard Horan & Erwin Bulte, 2004. "Optimal and Open Access Harvesting of Multi-Use Species in a Second-Best World," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 28(3), pages 251-272, July. [Downloadable!] (restricted)
  13. Deb, Rahul, 2008. "Interdependent Preferences, Potential Games and Household Consumption," MPRA Paper 6818, University Library of Munich, Germany. [Downloadable!]
  14. Dockner, E.J. & Wagener, F.O.O., 2006. "Markov-Perfect Nash Equilibria in Models With a Single Capital Stock," CeNDEF Working Papers 06-07, Universiteit van Amsterdam, Center for Nonlinear Dynamics in Economics and Finance. [Downloadable!]
    Other versions:
  15. Jeroen Bergh, 2007. "Evolutionary thinking in environmental economics," Journal of Evolutionary Economics, Springer, vol. 17(5), pages 521-549, October. [Downloadable!] (restricted)
  16. W. Davis Dechert & Sharon I. O'Donnell & William A. Brock, 2006. "Learning Parameters in Non Linear Ecological Models," Computing in Economics and Finance 2006 258, Society for Computational Economics. [Downloadable!]
  17. Kemp, R. & van den Bergh, J., 2006. "Economics and Transitions: Lessons from Economic Sub-disciplines," UNU-MERIT Working Paper Series 038, United Nations University, Maastricht Economic and social Research and training centre on Innovation and Technology. [Downloadable!]
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