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Harvesting in an integrated general equilibrium model

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Author Info
Thomas Eichner
Rüdiger Pethig ()

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Abstract

Harvesting of prey biomass is analyzed in an integrated ecological-economic system whose submodels, a predator-prey ecosystem and a simple economy, are microfounded dynamic general equilibrium models. These submodels are interdependent because the ecosystem responds to harvesting - through the reactions of optimizing individual organisms - by changing the provision of public ecosystem services to consumers. General analytical results are derived regarding the impact of harvesting policies on short-run equilibria of both submodels, on population dynamics, and on stationary states of the integrated model. A key insight is that prey biomass carries a positive ecosystem price which needs to be added as a tax mark-up to the economic price of harvested biomass to attain allocative efficiency. Further information on the dynamics is gained by resorting to numerical analysis of the policy regimes of zero harvesting, laissez-faire harvesting and efficient harvesting.

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Publisher Info
Paper provided by Universität Siegen, Fachbereich Wirtschaftswissenschaften, Wirtschaftsinformatik und Wirtschaftsrecht in its series Volkswirtschaftliche Diskussionsbeitraege with number 127-07.

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Length: 25 pages
Date of creation: 2007
Date of revision:
Handle: RePEc:sie:siegen:127-07

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Web page: http://www.uni-siegen.de/fb5/vwl/research/diskussionsbeitraege/

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Related research
Keywords: predator; prey; biomass price; harvesting;

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Find related papers by JEL classification:
Q20 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - General
Q57 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Ecological Economics

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. Wolfgang Ströbele & Holger Wacker, 1995. "The economics of harvesting predator-prey systems," Journal of Economics, Springer, vol. 61(1), pages 65-81, February. [Downloadable!] (restricted)
  2. David Finnoff & John Tschirhart, 2003. "Protecting an Endangered Species While Harvesting Its Prey in a General Equilibrium Ecosystem Model," Land Economics, University of Wisconsin Press, vol. 79(2), pages 160-180. [Downloadable!] (restricted)
  3. Thomas Eichner & Rüdiger Pethig, 2006. "An Analytical Foundation of the Ratio-Dependent Predator-Prey Model," Journal of Bioeconomics, Springer, vol. 8(2), pages 121-132, August. [Downloadable!] (restricted)
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  4. Thomas Christiaans & Thomas Eichner & Rüdiger Pethig, 2005. "A Micro-Level 'Consumer Approach' to Species Population Dynamics," CESifo Working Paper Series CESifo Working Paper No. , CESifo Group Munich. [Downloadable!]
    Other versions:
  5. Eichner, Thomas & Pethig, Rüdiger, 2009. "Pricing the ecosystem and taxing ecosystem services: A general equilibrium approach," Journal of Economic Theory, Elsevier, vol. 144(4), pages 1589-1616, July. [Downloadable!] (restricted)
    Other versions:
  6. Deaton, Angus, 1981. "Optimal Taxes and the Structure of Preferences," Econometrica, Econometric Society, vol. 49(5), pages 1245-60, September. [Downloadable!] (restricted)
    Other versions:
  7. Thomas Eichner & Rüdiger Pethig, 2003. "A Microfoundation of Predator-Prey Dynamics," Volkswirtschaftliche Diskussionsbeitraege 110-03, Universität Siegen, Fachbereich Wirtschaftswissenschaften, Wirtschaftsinformatik und Wirtschaftsrecht. [Downloadable!]
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  8. Thomas Crocker & John Tschirhart, 1992. "Ecosystems, externalities, and economies," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 2(6), pages 551-567, November. [Downloadable!] (restricted)
  9. Finnoff, David & Tschirhart, John, 2003. "Harvesting in an eight-species ecosystem," Journal of Environmental Economics and Management, Elsevier, vol. 45(3), pages 589-611, May. [Downloadable!] (restricted)
  10. Hoekstra, Jeljer & van den Bergh, Jeroen C.J.M., 2005. "Harvesting and conservation in a predator-prey system," Journal of Economic Dynamics and Control, Elsevier, vol. 29(6), pages 1097-1120, June. [Downloadable!] (restricted)
  11. Thomas Eichner & Rüdiger Pethig, 2003. "The impact of scarcity and abundance in food chains on species population dynamics," Volkswirtschaftliche Diskussionsbeitraege 109-03, Universität Siegen, Fachbereich Wirtschaftswissenschaften, Wirtschaftsinformatik und Wirtschaftsrecht. [Downloadable!]
Full references

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. Ian Bateman & Edward Barbier & Scott Barrett, 2007. "Introduction to the special issue in honour of David W. Pearce: environmental economics and policy," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 37(1), pages 1-6, May. [Downloadable!] (restricted)
  2. Frank Convery, 2007. "Making a difference — how environmental economists can influence the policy process — a case study of David W Pearce," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 37(1), pages 7-32, May. [Downloadable!] (restricted)
  3. Jean-Philippe Barde, 2007. "Harnessing the political economy of environmental policy: David Pearce’s contribution to OECD," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 37(1), pages 33-42, May. [Downloadable!] (restricted)
  4. Giles Atkinson & Kirk Hamilton, 2007. "Progress along the path: evolving issues in the measurement of genuine saving," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 37(1), pages 43-61, May. [Downloadable!] (restricted)
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