Dynamic modeling of environmental amenity-driven migration with ecological feedbacks
Environmental amenity-driven migration presents a double-edged sword to policy makers concerned with both economic and ecological sustainability. Clearly the protection of environmental amenities is important, but what is the right balance between ecosystem protection and regional economic processes that simultaneously respond to and degrade ecological resources? We consider this question in the context of households that are attracted to a region by urban and lake amenities and a lake ecosystem that becomes degraded by land development. An analytical expression for the time evolution of population is derived from households' and firms' optimizing behaviors. Numerical methods with phase plane diagrams are used to study the steady state and transient dynamics of the resulting population-phosphorus coupled system. The system is found to be bi-stable under a range of parameter values with one attractor corresponding to a desired "balanced" economy-ecology state and the other to a very small population base with fully restored ecology. We examine the dynamics and quantify the resilience of the system in and away from the balanced steady state using phase plane diagrams that demarcate the two domains of attraction. Economic-ecological interactions fundamentally alter regional economic dynamics and influence the resilience of the balanced domain of attraction. For example, a one percent increase in the loadings coefficient associated with residential land development generates a three percent decline in the resilience of the balanced state. We find that economic feedbacks often increase system resilience. Initial increases in the attraction of urban amenities spur greater population growth that increases the resilience of the balanced state. In addition, price feedbacks that arise from capitalized (dis)amenities increase the resilience of the system to bad ecological shocks.
If 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.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
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.:
- Edward L. Glaeser, Jed Kolko, and Albert Saiz, 2001.
Journal of Economic Geography,
Oxford University Press, vol. 1(1), pages 27-50, January.
- Ed Glaeser & Jed Kolko & Albert Saiz, 2000. "Consumer City," NBER Working Papers 7790, National Bureau of Economic Research, Inc.
- Edward L. Glaeser & Jed Kolko & Albert Saiz, 2000. "Consumer City," Harvard Institute of Economic Research Working Papers 1901, Harvard - Institute of Economic Research.
- Levin, Simon A. & Barrett, Scott & Aniyar, Sara & Baumol, William & Bliss, Christopher & Bolin, Bert & Dasgupta, Partha & Ehrlich, Paul & Folke, Carl & Gren, Ing-Marie & Holling, C.S. & Jansson, Annma, 1998. "Resilience in natural and socioeconomic systems," Environment and Development Economics, Cambridge University Press, vol. 3(02), pages 221-262, May.
- Berck, Peter & Perloff, Jeffrey M, 1984. "An Open-Access Fishery with Rational Expectations," Econometrica, Econometric Society, vol. 52(2), pages 489-506, March.
- Berck, Peter & Perloff, Jeffrey M, 1982. "An Open-Access Fishery with Rational Expectations," Department of Agricultural & Resource Economics, UC Berkeley, Working Paper Series qt876499mq, Department of Agricultural & Resource Economics, UC Berkeley.
- Eichner, Thomas & Pethig, Rudiger, 2006. "Economic land use, ecosystem services and microfounded species dynamics," Journal of Environmental Economics and Management, Elsevier, vol. 52(3), pages 707-720, November.
- Thomas Eichner & RÃ¼diger Pethig, 2004. "Economic Land Use, Ecosystem Services and Microfounded Species Dynamics," CESifo Working Paper Series 1269, CESifo Group Munich.
- Thomas Eichner & Rüdiger Pethig, 2004. "Economic land use, ecosystem services and microfounded species dynamics," Volkswirtschaftliche Diskussionsbeiträge 116-04, Universität Siegen, Fakultät Wirtschaftswissenschaften, Wirtschaftsinformatik und Wirtschaftsrecht.
- Krugman, Paul, 1991. "Increasing Returns and Economic Geography," Journal of Political Economy, University of Chicago Press, vol. 99(3), pages 483-499, June.
- Paul Krugman, 1990. "Increasing Returns and Economic Geography," NBER Working Papers 3275, National Bureau of Economic Research, Inc.
- Perrings, Charles & Walker, Brian, 1997. "Biodiversity, resilience and the control of ecological-economic systems: the case of fire-driven rangelands," Ecological Economics, Elsevier, vol. 22(1), pages 73-83, July.
- McGranahan, David A., 1999. "Natural Amenities Drive Rural Population Change," Agricultural Economics Reports 33955, United States Department of Agriculture, Economic Research Service.
- Krutilla, Kerry & Reuveny, Rafael, 2006. "The systems dynamics of endogenous population growth in a renewable resource-based growth model," Ecological Economics, Elsevier, vol. 56(2), pages 256-267, February.
- JunJie Wu & Elena G. Irwin, 2008. "Optimal Land Development with Endogenous Environmental Amenities," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 90(1), pages 232-248.
- Janssen, Marco A. & Anderies, John M. & Walker, Brian H., 2004. "Robust strategies for managing rangelands with multiple stable attractors," Journal of Environmental Economics and Management, Elsevier, vol. 47(1), pages 140-162, January.
- Hein, Lars, 2006. "Cost-efficient eutrophication control in a shallow lake ecosystem subject to two steady states," Ecological Economics, Elsevier, vol. 59(4), pages 429-439, October.
- Charles Perrings, 1998. "Resilience in the Dynamics of Economy-Environment Systems," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 11(3), pages 503-520, April.
- Anderies, John M., 2003. "Economic development, demographics, and renewable resources: a dynamical systems approach," Environment and Development Economics, Cambridge University Press, vol. 8(02), pages 219-246, May. Full references (including those not matched with items on IDEAS)
When requesting a correction, please mention this item's handle: RePEc:eee:ecolec:v:68:y:2009:i:10:p:2498-2510. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Dana Niculescu)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.