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Optimal Regulation Of Eutrophying Lakes, Fjords And Rivers In The Presence Of Threshold Effects

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  • Naevdal, Eric

Abstract

In a large number of practical environmental regulation problems, the damage done by pollutants depends on stocks and/or flows of pollutants exceeding certain thresholds. A typical example is eutrophication which occur when stocks of nutrients in a lake exceeds a certain threshold. The present paper presents a model of eutrophication that accounts for such thresholds. The paper does so by applying a novel technique in optimal control theory that allows for the analysis of systems where state-variables bounce back and forth over thresholds that take the form of functions of time and state-variables.

Suggested Citation

  • Naevdal, Eric, 1999. "Optimal Regulation Of Eutrophying Lakes, Fjords And Rivers In The Presence Of Threshold Effects," 1999 Annual meeting, August 8-11, Nashville, TN 21619, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  • Handle: RePEc:ags:aaea99:21619
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    File URL: http://purl.umn.edu/21619
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    References listed on IDEAS

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    1. Farzin, Y. H., 1996. "Optimal pricing of environmental and natural resource use with stock externalities," Journal of Public Economics, Elsevier, vol. 62(1-2), pages 31-57, October.
    2. Charles Perrings & David Pearce, 1994. "Threshold effects and incentives for the conservation of biodiversity," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 4(1), pages 13-28, February.
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    Cited by:

    1. Gren, Ing-Marie, 2009. "A numerical model for dynamic cost effective mitigation of eutrophication with spatial heterogeneity in the Baltic Sea," Department of Economics publications 4311, Swedish University of Agricultural Sciences, Department of Economics.
    2. Katarina Elofsson, 2007. "Cost Uncertainty and Unilateral Abatement," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 36(2), pages 143-162, February.
    3. Sergey Rabotyagov & Catherine L. Kling & Philip W. Gassman & Nancy N. Rabalais & R. Eugene Turner, 2012. "Economics of Dead Zones: Linking Externalities from the Land to their Consequences in the Sea, The," Center for Agricultural and Rural Development (CARD) Publications 12-wp534, Center for Agricultural and Rural Development (CARD) at Iowa State University.
    4. Nuppenau, Ernst-August, 2008. "On The Inclusion Of Nature And Its Dynamics In Farmers' Objective Functions For Eco-System Services Provision: A New Strategy In Bio-Economic Modeling," 107th Seminar, January 30-February 1, 2008, Sevilla, Spain 6653, European Association of Agricultural Economists.
    5. Elofsson, Katarina & Folmer, Henk & Gren, Ing-Marie, 2003. "Management of eutrophicated coastal ecosystems: a synopsis of the literature with emphasis on theory and methodology," Ecological Economics, Elsevier, vol. 47(1), pages 1-11, November.
    6. Elofsson, Katarina, 2002. "Economics of Marine Pollution," Department of Economics publications 78, Swedish University of Agricultural Sciences, Department of Economics.

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