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Biodiversity and economic growth: stabilization versus preservation of the ecological dynamics

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Author Info
Antoci, Angelo
Borghesi, Simone
Russu, Paolo

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Abstract

This work examines the impact that economic growth can have on biodiversity and on the ecological dynamics that would naturally emerge in the absence of human activity. The loss of biodiversity may induce policy-makers to implement defensive actions that prevent single species from extinction. These defensive actions, however, may deeply alter the natural dynamics of interaction between species, leading to an ecological equilibrium that is completely different from the one that would exist in the absence of human intervention. This suggests that there might exist a conflict between preserving biodiversity (through stabilization of the ecological system) and preserving the intrinsic features of the ecological dynamics. To investigate this issue more deeply, we analyze the impact that different objective functions and defensive technologies can have on the natural ecological dynamics, and show that human action can modify the stability of the ecological fixed points. From the simple analytical formulations adopted in the paper, it emerges that it is possible to stabilize the ecological fixed point and consequently to avoid the extinction of a species, even in the absence of defensive expenditures specifically finalized at the protection of that species. The stabilizing. effect of human intervention, however, turns out to be enhanced when specific defensive expenditures are implemented. Finally, numerical simulations suggest that human activity can have an even deeper impact on the ecological dynamics, substantially modifying not only the stability of the fixed points, but also their number.

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File URL: http://mpra.ub.uni-muenchen.de/13666/
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Publisher Info
Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 13666.

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Date of creation: 2004
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Handle: RePEc:pra:mprapa:13666

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Related research
Keywords: Biodiversity; growth; defensive actions; ecological dynamics;

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Find related papers by JEL classification:
O13 - Economic Development, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
C61 - Mathematical and Quantitative Methods - - Mathematical Methods and Programming - - - Optimization Techniques; Programming Models; Dynamic Analysis
Q20 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - General
C62 - Mathematical and Quantitative Methods - - Mathematical Methods and Programming - - - Existence and Stability Conditions of Equilibrium

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  1. Gowdy, John M. & McDaniel, Carl N., 1995. "One world, one experiment: addressing the biodiversity--economics conflict," Ecological Economics, Elsevier, vol. 15(3), pages 181-192, December. [Downloadable!] (restricted)
  2. Montgomery, Claire A. & Pollak, Robert A. & Freemark, Kathryn & White, Denis, 1999. "Pricing Biodiversity," Journal of Environmental Economics and Management, Elsevier, vol. 38(1), pages 1-19, July. [Downloadable!] (restricted)
  3. Shogren, Jason F. & Crocker, Thomas D., 1999. "Risk and Its Consequences," Journal of Environmental Economics and Management, Elsevier, vol. 37(1), pages 44-51, January. [Downloadable!] (restricted)
  4. Zhiqi Chen, 1997. "Can Economic Activities Lead to Climate Chaos? An Economic Analysis on Global Warming," Canadian Journal of Economics, Canadian Economics Association, vol. 30(2), pages 349-66, May. [Downloadable!] (restricted)
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