The devil in the details: Non-convexities in ecosystem service provision
Standard economic theory is built on key assumptions regarding concavity and convexity, particular with respect to the production possibility frontier. Non-convexity is readily demonstrated using a two species conventional model. Now that ecosystem services are growing in prominence it is important to confirm that typical natural resource production relations obey these conditions. If not, innocently prescribing price or allocation policies can lead to a minimum rather than a maximum or to wrong equilibrium solutions in general. This is a particular danger in decentralized pricing systems.
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.:
- Misra, Dinesh & Kant, Shashi, 2005. "Economic efficiency and shadow prices of social and biological outputs of village-level organizations of joint forest management in Gujarat, India," Journal of Forest Economics, Elsevier, vol. 11(3), pages 141-160, December.
- Boyd, James & Banzhaf, Spencer, 2007. "What are ecosystem services? The need for standardized environmental accounting units," Ecological Economics, Elsevier, vol. 63(2-3), pages 616-626, August.
- Mäler, K-G. & Xepapadeas, A. & de Zeeuw, A.J., 2000.
"The Economics of Shallow Lakes,"
2000-69, Tilburg University, Center for Economic Research.
- de Groot, Rudolf S. & Wilson, Matthew A. & Boumans, Roelof M. J., 2002. "A typology for the classification, description and valuation of ecosystem functions, goods and services," Ecological Economics, Elsevier, vol. 41(3), pages 393-408, June.
- Brown, Gardner, Jr, 1974. "An Optimal Program for Managing Common Property Resources with Congestion Externalities," Journal of Political Economy, University of Chicago Press, vol. 82(1), pages 163-73, Jan.-Feb..
- Partha Dasgupta & Karl-Göran Mäler, 2003. "The Economics of Non-Convex Ecosystems: Introduction," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 26(4), pages 499-525, December.
- Weitzman, Martin L, 1974.
"Prices vs. Quantities,"
Review of Economic Studies,
Wiley Blackwell, vol. 41(4), pages 477-91, October.
- Fisher, Anthony C & Krutilla, John V, 1975. "Resource Conservation, Environmental Preservation, and the Rate of Discount," The Quarterly Journal of Economics, MIT Press, vol. 89(3), pages 358-70, August.
- Nalle, Darek J. & Montgomery, Claire A. & Arthur, Jeffrey L. & Polasky, Stephen & Schumaker, Nathan H., 2004. "Modeling joint production of wildlife and timber," Journal of Environmental Economics and Management, Elsevier, vol. 48(3), pages 997-1017, November.
- Norgaard, Richard B. & Jin, Ling, 2008. "Trade and the governance of ecosystem services," Ecological Economics, Elsevier, vol. 66(4), pages 638-652, July.
- Wossink, Ada & Swinton, Scott M., 2007. "Jointness in production and farmers' willingness to supply non-marketed ecosystem services," Ecological Economics, Elsevier, vol. 64(2), pages 297-304, December.
When requesting a correction, please mention this item's handle: RePEc:eee:resene:v:33:y:2011:i:2:p:355-365. 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: (Zhang, Lei)
If references are entirely missing, you can add them using this form.