Equilibrium and Efficient Land-Use Arrangements under Spatial Externality on a Lattice
AbstractMany cases of externalities in agricultural production, such as pesticide drift, cross-pollination, and offensive odors, are attributable to the incompatibility of neighboring land uses and exhibit distance dependence. We characterize equilibrium spatial patterns of externality-generating and -receiving land uses on a two-dimensional lattice with noncooperative, profit-maximizing producers. In equilibrium, generators or recipients form one or more neighborhoods with certain geometric properties, depending on how an externality dissipates with distance and whether there is an externality generated outside the region's boundaries. Efficient land-use arrangements maximize social welfare subject to the implementability constraints stipulating that no farm-level activity, except for land use, can be directly controlled by the social planner. We characterize efficient land-use arrangements when the return to recipient land use decreases linearly with the length of the border shared with incompatible land uses. Under these assumptions, we find circumstances in which an efficient activity arrangement belongs to the set of the Nash equilibrium outcomes. Also, efficient arrangements in a more general case are discussed.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Food and Agricultural Policy Research Institute (FAPRI) at Iowa State University in its series Food and Agricultural Policy Research Institute (FAPRI) Publications with number 04-wp376.
Date of creation: Oct 2004
Date of revision:
graph partitioning; land-use arrangement; spatial externality; supermodular game.;
Other versions of this item:
- Alexander E. Saak, 2004. "Equilibrium and Efficient Land-Use Arrangements under Spatial Externality on a Lattice," Center for Agricultural and Rural Development (CARD) Publications 04-wp376, Center for Agricultural and Rural Development (CARD) at Iowa State University.
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.:
- Calvó-Armengol, Antoni & Zenou, Yves, 2003.
"Social Networks and Crime Decisions: The Role of Social Structure in Facilitating Delinquent Behavior,"
Working Paper Series
601, Research Institute of Industrial Economics.
- Antoni Calvó-Armengol & Yves Zenou, 2004. "Social Networks And Crime Decisions: The Role Of Social Structure In Facilitating Delinquent Behavior," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 45(3), pages 939-958, 08.
- Calvó-Armengol, Antoni & Zenou, Yves, 2003. "Social Networks and Crime Decisions: The Role of Social Structure in Facilitating Delinquent Behaviour," CEPR Discussion Papers 3966, C.E.P.R. Discussion Papers.
- Antoni Calvó-Armengol & Yves Zenou, 2003. "Social Networks and Crime Decisions: The Role of Social Structure in Facilitating Delinquent Behavior," Working Papers 52, Barcelona Graduate School of Economics.
- Munro, Alistair, 2008. "The spatial impact of genetically modified crops," Ecological Economics, Elsevier, vol. 67(4), pages 658-666, November.
- Ambec, Stefan & Langinier, Corinne & Marcoul, Phillipe, 2011.
"Spatial Efficiency of Genetically Modified and Organic Crops,"
2011-11, University of Alberta, Department of Economics.
- Ambec, Stefan & Langinier, Corinne & Marcoul, Philippe, 2011. "Spatial Efficiency of Genetically Modified and Organic Crops," LERNA Working Papers 11.18.352, LERNA, University of Toulouse.
- Ambec, Stefan & Langinier, Corinne & Marcoul, Philippe, 2012. "Spatial Efficiency of Genetically Modified and Organic Crops," Working Papers 125232, Structure and Performance of Agriculture and Agri-products Industry (SPAA).
- Lewis, David J. & Wu, JunJie, 2005. "Optimal Economic Landscapes with Habitat Fragmentation Effects," 2005 Annual meeting, July 24-27, Providence, RI 19425, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().
If references are entirely missing, you can add them using this form.