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Optimal Resource Management in the Presence of a Deleterious Alien Species

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  • Amitrajeet A. Batabyal

    ()
    (Rochester Institute of Technology)

  • Peter Nijkamp

    ()
    (Vrije Universiteit Amsterdam)

Abstract

Various plants and resources such as orchards are vulnerable to the detrimental effects of successful invasions by alien animal or plant species. To outline an appropriate policy response, we first use renewal theory to construct a stochastic model of optimal orchard management in the presence of a deleterious alien species. Next, we derive the orchard manager’s long run expected cost (LREC) of orchard management per unit time. Finally, we show that when confronted with a successful biological invasion, the optimal number of trees that need to be removed and replanted in order to keep the orchard under study sustainable in the long run minimizes the LREC function mentioned above.

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Bibliographic Info

Paper provided by Tinbergen Institute in its series Tinbergen Institute Discussion Papers with number 07-085/3.

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Date of creation: 06 Nov 2007
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Handle: RePEc:dgr:uvatin:20070085

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Web page: http://www.tinbergen.nl

Related research

Keywords: Alien Species; Long Run Expected Cost; Orchard Management; Uncertainty;

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  1. Beladi, Hamid & Batabyal, Amitrajeet A., 2004. "International Trade And Biological Invasions: A Queuing Theoretic Analysis Of The Prevention Problem," 2004 Annual meeting, August 1-4, Denver, CO, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association) 19912, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  2. Wojciech Florkowski & Camilo Sarmiento, 2005. "The examination of pecan price differences using spatial correlation estimation," Applied Economics, Taylor & Francis Journals, Taylor & Francis Journals, vol. 37(3), pages 271-278.
  3. Park, Timothy A. & Florkowski, Wojciech J., 2003. "Selection of Peach Varieties and the Role of Quality Attributes," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, Western Agricultural Economics Association, vol. 28(01), April.
  4. T. Jeffrey Price & Michael E. Wetzstein & Mark W. Rieger, 1997. "Reducing Yield Variation in Peach Orchards by Geographic Scattering," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, Agricultural and Applied Economics Association, vol. 79(4), pages 1119-1126.
  5. Batabyal, Amitrajeet A., 1999. "Aspects of the optimal management of cyclical ecological-economic systems," Ecological Economics, Elsevier, Elsevier, vol. 30(2), pages 285-292, August.
  6. Pierre, Raphael & Spreen, Thomas H. & Moss, Charles B., 2006. "Invasive Species and Biosecurity: Cost of Monitoring and Controlling Mediterranean Fruit Flies in Florida," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, Southern Agricultural Economics Association, vol. 38(02), August.
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