How to Get There From Here: Ecological and Economic Dynamics of Ecosystem Service Provision
- 792 Downloads
Using a bioeconomic model of a coral reef-mangrove-seagrass system, we analyze the dynamic path of incentives to achieve an efficient transition to the steady state levels of fish biomass and mangrove habitat conservation. Our model nests different types of species habitat dependency and allows for changes in the extent of habitat to affect the growth rate and the long-run fish level. We solve the two-control, two-state non-linear optimal control problem numerically and compute the input efficiency frontier characterizing the tradeoff between mangrove habitat and fish population. After identifying the optimal locus on the frontier, we determine the optimal transition path to the frontier from a set of initial conditions to illustrate the necessary investments. Finally, we demonstrate how dynamic conservation incentives (payments for ecosystem services) for a particular habitat with multiple services are interdependent, change over time, and can be greater than contemporaneous fishing profits when the ecosystem is degraded.
KeywordsOptimal control Bioeconomic Rebuilding Collocation Habitat
We thank Peter J. Mumby, Steve Polasky, Chris Costello, Jim Wilen, an anonymous reviewer, and seminar participants at UC Davis (Fall 2009), Resources for the Future (March 2010), AAAS meeting (San Diego, Jan. 2010), Natural Resource Modeling workshop (Helsinki, June 2010) and WCERE meeting (Montreal, July 2010) for insightful and helpful comments and suggestions. Sanchirico acknowledges support from the U.S. EPA Science to Achieve Results (R832223), Resources for the Future, and California Agricultural Experimentation Station (AES) project CA-D*-ESP-7084-H. Sanchirico is an associate member of the Giannini Foundation of Agricultural Economics.
This article is distributed under the terms of the Creative Commons Attribution Noncommercial License which permits any noncommercial use, distribution, and reproduction in any medium, provided the original author(s) and source are credited.
- Ascher UM, Petzold LR (1998) Computer methods for ordinary differential equations and differential-algebraic equations. Philadelphia: Society for Industrial and Applied Mathematics (SIAM)Google Scholar
- Barbier EB, Koch EW, Silliman BR, Hacker SD, Wolanski E, Primavera J, Granek EF, Polasky S, Aswani S, Cramer LA, Stoms DM, Kennedy CJ, Bael D, Kappel CV, Perillo GME, Reed DJ (2008) Coastal ecosystem-based management with nonlinear ecological functions and values. Science 319: 321–323CrossRefGoogle Scholar
- Bryson AE Jr (1999) Dynamic optimization. Addison Wesley Longman Inc., Reading, MA, p 434Google Scholar
- Chang AC (1992) Elements of dynamic optimization. Waveland Press Inc., Long Grove, IL, p 327Google Scholar
- Clark CW (1990) Mathematical bioeconomics: the optimal management of renewable resources, 2nd edn. Pure and applied mathematics series. New York, Chichester, p 386Google Scholar
- Duke NC, Meynecke JO, Dittmann S, Ellison AM, Anger K, Berger U, Cannicci S, Diele K, Ewel KC, Field CD, Koedam N, Lee SY, Marchand C, Nordhaus I, Dahdouh-Guebas F (2007) A world with mangroves?. Science (in Letters) 317: 41–42Google Scholar
- Freeman AM (1993) The measurement of environmental and resource values : theory and methods. Resources for the Future, Washington, D.C.Google Scholar
- Gren IM, Soderqvist T (1994) Economic valuation of wetlands: a survey. Beijer discussion paper series, Beijer International Institute of Ecological Economics, Stockholm, Sweden.Google Scholar
- Heal GM, Barbier EB, Boyle KJ, Covich AP, Gloss SP, Hershner CH, Hoehn JP, Pringle CM, Polasky S, Segerson K, Shrader-Frechette K (2005) Valuing ecosystem services: toward better environmental decision-making. The National Academies Press, Washington, D.C.Google Scholar
- Judd KL (1998) Numerical methods in economics. MIT Press, Cambridge, MassGoogle Scholar
- Kamien MI, Schwartz NL (1991) Dynamic optimization: the calculus of variations and optimal control in economics and management, 2nd edn. North-Holland, Elsevier Science, Amsterdam, New YorkGoogle Scholar
- Polasky S, Nelson E, Camm J, Csuti B, Fackler P, Lonsdorf E, Montgomery C, White D, Arthur J, Garber-Yonts B, Haight R, Kagan J, Starfield A, Tobalske C (2008) Where to put things? Spatial land management to sustain biodiversity and economic returns. Biol Conserv 141: 1505–1524CrossRefGoogle Scholar