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Indirect management of invasive species through bio-controls: A bioeconomic model of salmon and alewife in Lake Michigan

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  • Fenichel, Eli P.
  • Horan, Richard D.
  • Bence, James R.

Abstract

Invasive species are typically viewed as an economic bad because they cause economic and ecological damages, and can be difficult to control. When direct management is limited, another option is indirect management via bio-controls. Here management is directed at the bio-control species population (e.g., supplementing this population through stocking) with the aim that, through ecological interactions, the bio-control species will control the invader. We focus on stocking salmon to control invasive alewives in Lake Michigan. Salmon are valuable to recreational anglers, and alewives are their primary food source in Lake Michigan. We illustrate how stocking salmon can be used to control alewife, while at the same time alewife can be turned from a net economic bad (having a negative shadow value) into a net economic good (having a positive shadow value) by providing valuable ecosystem services that support the recreational fishery. Using optimal control theory, we solve for a stocking program that maximizes social welfare. Optimal stocking results in cyclical dynamics. We link concepts of natural capital and indirect management, population dynamics, non-convexities, and multiple-use species and demonstrate that species interactions are critical to the values that humans derive from ecosystems. This research also provides insight into the management of salmon fisheries in the Great Lakes.

Suggested Citation

  • Fenichel, Eli P. & Horan, Richard D. & Bence, James R., 2010. "Indirect management of invasive species through bio-controls: A bioeconomic model of salmon and alewife in Lake Michigan," Resource and Energy Economics, Elsevier, vol. 32(4), pages 500-518, November.
    • Handle: RePEc:eee:resene:v:32:y:2010:i:4:p:500-518
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    References listed on IDEAS

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    Cited by:

    1. Finnoff, David & Horan, Richard D. & Shogren, Jason F. & Reeling, Carson & Berry, Kevin, 2016. "Natural vs anthropogenic risk reduction: Facing invasion risks involving multi-stable outcomes," Journal of Economic Behavior & Organization, Elsevier, vol. 132(PB), pages 113-123.
    2. Berry, Kevin & Fenichel, Eli P. & Robinson, Brian E., 2019. "The ecological insurance trap," Journal of Environmental Economics and Management, Elsevier, vol. 98(C).
    3. Melstrom, Richard T., 2015. "Cyclical harvesting in fisheries with bycatch," Resource and Energy Economics, Elsevier, vol. 42(C), pages 1-15.
    4. Melstrom, Richard T. & Horan, Richard D., 2013. "Managing excessive predation in a predator-endangered prey setting," Ecological Economics, Elsevier, vol. 90(C), pages 85-93.
    5. Melstrom, Richard T., 2014. "Optimal Management of a Fishery with Bycatch," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 168316, Agricultural and Applied Economics Association.
    6. Yun, Seong Do & Gramig, Benjamin M., 2014. "Dynamic Optimization of Ecosystem Services: A Comparative Analysis of Non-Spatial and Spatially-Explicit Models," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 170450, Agricultural and Applied Economics Association.
    7. Fenichel, Eli P. & Abbott, Joshua K., 2014. "Heterogeneity and the fragility of the first best: Putting the “micro” in bioeconomic models of recreational resources," Resource and Energy Economics, Elsevier, vol. 36(2), pages 351-369.
    8. Horan, Richard & Finnoff, David & Reeling, Carson & Berry, Kevin, "undated". "Optimal Management of a Native Species Facing Species or Pathogen Invasion Risks Involving Multi-Stable Outcomes," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 170693, Agricultural and Applied Economics Association.
    9. Moberg, Emily A. & Pinsky, Malin L. & Fenichel, Eli P., 2019. "Capital Investment for Optimal Exploitation of Renewable Resource Stocks in the Age of Global Change," Ecological Economics, Elsevier, vol. 165(C), pages 1-1.
    10. Melstrom, Richard T., 2014. "Managing apparent competition between the feral pigs and native foxes of Santa Cruz Island," Ecological Economics, Elsevier, vol. 107(C), pages 157-162.

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