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Economic land use, ecosystem services and microfounded species dynamics

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  • Eichner, Thomas
  • Pethig, Rudiger

Abstract

In an integrated economy-ecosystem model humans choose their land use and leave the residual land as habitat for three species forming a food chain. The size of habitat determines the diversity and abundance of species. That biodiversity generates, in turn, a flow of ecosystem services with public-good characteristics for human consumption. The ecosystem submodel yields (rather than assumes!) population growth functions with each species’ growth depending on the size of habitat. First the relationship between habitat and species growth (sustenance, decline and extinction) is explored. The laissez-faire economy is shown to result in an underprovision of habitat, making the case for land use restrictions for nature protection. The optimal land use policy is characterized with full regard of ecosystem dynamics. Finally, labor-augmenting technical change is introduced to generate ever increasing pressure towards further habitat reductions. In the laissez-faire economy the habitat is consequently squeezed to zero in the long-run so that all species are doomed. Social optimality demands, however, to refrain from using all land for economic purposes despite ever-growing labor productivity.
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Suggested Citation

  • 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.
  • Handle: RePEc:eee:jeeman:v:52:y:2006:i:3:p:707-720
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    References listed on IDEAS

    as
    1. 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.
    2. Jérôme Chave & Simon Levin, 2003. "Scale and Scaling in Ecological and Economic Systems," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 26(4), pages 527-557, December.
    3. Swanson, Timothy M, 1994. "The Economics of Extinction Revisited and Revised: A Generalised Framework for the Analysis of the Problems of Endangered Species and Biodiversity Losses," Oxford Economic Papers, Oxford University Press, vol. 46(0), pages 800-821, Supplemen.
    4. Thomas Eichner & Rüdiger Pethig, 2003. "A Microfoundation of Predator-Prey Dynamics," Volkswirtschaftliche Diskussionsbeiträge 110-03, Universität Siegen, Fakultät Wirtschaftswissenschaften, Wirtschaftsinformatik und Wirtschaftsrecht.
    5. Armsworth, Paul R. & Kendall, Bruce E. & Davis, Frank W., 2004. "An introduction to biodiversity concepts for environmental economists," Resource and Energy Economics, Elsevier, vol. 26(2), pages 115-136, June.
    6. Partha Dasgupta & Karl-Göran Mäler, 2003. "The Economics of Non-Convex Ecosystems: Introduction," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 26(4), pages 499-525, December.
    7. H. Scott Gordon, 1954. "The Economic Theory of a Common-Property Resource: The Fishery," Journal of Political Economy, University of Chicago Press, vol. 62, pages 124-124.
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    Citations

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    Cited by:

    1. Angela Münch, 2010. "Agri-Environmental Schemes and Grassland Biodiversity: Another Side of the Coin," Jena Economic Research Papers 2010-026, Friedrich-Schiller-University Jena.
    2. Christiaans, Thomas & Eichner, Thomas & Pethig, Rudiger, 2007. "Optimal pest control in agriculture," Journal of Economic Dynamics and Control, Elsevier, vol. 31(12), pages 3965-3985, December.
    3. Andreas Löschel & Dirk Rübbelke, 2014. "On the Voluntary Provision of International Public Goods," Economica, London School of Economics and Political Science, vol. 81(322), pages 195-204, April.
    4. Guy Meunier, 2014. "Land-sparing vs Land-sharing with incomplete policies," Working Papers 2014-05, Alimentation et Sciences Sociales.
    5. Hertzler, Greg, 2008. "Dynamic Contingent Valuation and Choice Modelling for Ecosystem Services," 2008 Conference (52nd), February 5-8, 2008, Canberra, Australia 6024, Australian Agricultural and Resource Economics Society.
    6. Franco Mariuzzo & Patrick Paul Walsh & Ciara Whelan, 2004. "EU Merger Control in Differentiated Product Industries," CESifo Working Paper Series 1312, CESifo Group Munich.
    7. 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.
    8. Bartus, Gábor, 2008. "Van-e a gazdasági tevékenységeknek termodinamikai korlátja?
      [Is there a thermodynamic constraint on economic activity?]
      ," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(11), pages 1010-1022.
    9. Thomas Christiaans & Thomas Eichner & Rüdiger Pethig, 2005. "A micro-level ‘consumer approach’ to species population dynamics," Volkswirtschaftliche Diskussionsbeiträge 123-05, Universität Siegen, Fakultät Wirtschaftswissenschaften, Wirtschaftsinformatik und Wirtschaftsrecht.
    10. repec:spr:envpol:v:20:y:2018:i:1:d:10.1007_s10018-017-0188-3 is not listed on IDEAS
    11. Cong, Rong-Gang & Smith, Henrik G. & Olsson, Ola & Brady, Mark, 2014. "Managing ecosystem services for agriculture: Will landscape-scale management pay?," Ecological Economics, Elsevier, vol. 99(C), pages 53-62.
    12. repec:eee:foreco:v:29:y:2017:i:pa:p:4-13 is not listed on IDEAS
    13. Walls, Margaret & Riddle, Anne, 2012. "Biodiversity, Ecosystem Services, and Land Use: Comparing Three Federal Policies," Discussion Papers dp-12-08, Resources For the Future.
    14. Chen, Yong & Irwin, Elena G. & Jayaprakash, Ciriyam, 2009. "Dynamic modeling of environmental amenity-driven migration with ecological feedbacks," Ecological Economics, Elsevier, vol. 68(10), pages 2498-2510, August.
    15. Chen, Yong & Jayaprakash, Ciriyam & Irwin, Elena, 2012. "Threshold management in a coupled economic–ecological system," Journal of Environmental Economics and Management, Elsevier, vol. 64(3), pages 442-455.

    More about this item

    JEL classification:

    • Q24 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Land
    • Q57 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Ecological Economics

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