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A Bioeconomic Model of the Great Salt lake Watershed

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Author Info
David Finnoff
Arthur Caplan

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Abstract

We present a computable general equilibrium model of the interface between the Great Salt Lake (GSL) ecosystem and the regional economy that impacts the ecosystem. With respect to the ecosystem, the model treats the various representative species as net-energy maximizers and bases population dynamics on the period-by-period sizes of surplus net energy. Energy markets—where predators and prey exchange biomass—determine equilibrium energy prices. With respect to the regional economy, we model five production sectors (at the aggregate industry level)—brine cyst harvesters, the mineral-extraction industry, agriculture, recreation, and a composite-good industry—as well as the household sector. By performing dynamic simulations of the joint ecosystem-regional economy model, we isolate the effects of period-by-period stochastic changes in salinity levels and an initial shock to species-population levels on the ecological and economic variables of the model.

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File URL: ftp://repec.bus.usu.edu/RePEc/usu/pdf/ERI2004-14.pdf
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File Function: First version, 2004
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Publisher Info
Paper provided by Utah State University, Department of Economics in its series Working Papers with number 2004-14.

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Date of creation: Aug 2004
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Handle: RePEc:usu:wpaper:2004-14

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Related research
Keywords: net energy; biomass demand and supply; regional economy; Great Salt Lake;

Find related papers by JEL classification:
C68 - Mathematical and Quantitative Methods - - Mathematical Methods and Programming - - - Computable General Equilibrium Models
D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models
Q57 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Ecological Economics

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  1. Hassan, R. & Thurlow, J. & Roe, T. & Diao, X. & Chumi., S. & Tsur, Y., 2008. "Macro-micro feedback links of water management in South Africa : CGE analyses of selected policy regimes," Policy Research Working Paper Series 4768, The World Bank. [Downloadable!]
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This page was last updated on 2009-12-5.

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