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Dynamic modeling of environmental amenity-driven migration with ecological feedbacks

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  • Chen, Yong
  • Irwin, Elena G.
  • Jayaprakash, Ciriyam

Abstract

Environmental amenity-driven migration presents a double-edged sword to policy makers concerned with both economic and ecological sustainability. Clearly the protection of environmental amenities is important, but what is the right balance between ecosystem protection and regional economic processes that simultaneously respond to and degrade ecological resources? We consider this question in the context of households that are attracted to a region by urban and lake amenities and a lake ecosystem that becomes degraded by land development. An analytical expression for the time evolution of population is derived from households' and firms' optimizing behaviors. Numerical methods with phase plane diagrams are used to study the steady state and transient dynamics of the resulting population-phosphorus coupled system. The system is found to be bi-stable under a range of parameter values with one attractor corresponding to a desired "balanced" economy-ecology state and the other to a very small population base with fully restored ecology. We examine the dynamics and quantify the resilience of the system in and away from the balanced steady state using phase plane diagrams that demarcate the two domains of attraction. Economic-ecological interactions fundamentally alter regional economic dynamics and influence the resilience of the balanced domain of attraction. For example, a one percent increase in the loadings coefficient associated with residential land development generates a three percent decline in the resilience of the balanced state. We find that economic feedbacks often increase system resilience. Initial increases in the attraction of urban amenities spur greater population growth that increases the resilience of the balanced state. In addition, price feedbacks that arise from capitalized (dis)amenities increase the resilience of the system to bad ecological shocks.

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  • 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.
    • Handle: RePEc:eee:ecolec:v:68:y:2009:i:10:p:2498-2510
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    Cited by:

    1. Elena G. Irwin & Andrew M. Isserman & Maureen Kilkenny & Mark D. Partridge, 2010. "A Century of Research on Rural Development and Regional Issues," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 92(2), pages 522-553.
    2. Schaeffer, Y. & Dissart, J.-C., 2018. "Natural and Environmental Amenities: A Review of Definitions, Measures and Issues," Ecological Economics, Elsevier, vol. 146(C), pages 475-496.
    3. Dan S. Rickman & Shane D. Rickman, 2011. "Population Growth In High‐Amenity Nonmetropolitan Areas: What'S The Prognosis?," Journal of Regional Science, Wiley Blackwell, vol. 51(5), pages 863-879, December.
    4. Thomas Coisnon & Walid Oueslati & Julien Salanié, 2013. "Spatial targeting of agri-environmental policy and urban development," Post-Print halshs-00949730, HAL.
    5. Alessandra Faggian & M. Rose Olfert & Mark D. Partridge, 2011. "Inferring regional well-being from individual revealed preferences: the 'voting with your feet' approach," Cambridge Journal of Regions, Economy and Society, Cambridge Political Economy Society, vol. 5(1), pages 163-180.
    6. Dan S. Rickman & Hongbo Wang, 2020. "Whither the American west economy? Natural amenities, mineral resources and nonmetropolitan county growth," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 65(3), pages 673-701, December.
    7. Elena G. Irwin, 2010. "New Directions For Urban Economic Models Of Land Use Change: Incorporating Spatial Dynamics And Heterogeneity," Journal of Regional Science, Wiley Blackwell, vol. 50(1), pages 65-91, February.
    8. Partridge, Mark D. & Rickman, Dan S., 2012. "Integrating regional economic development analysis and land use economics," MPRA Paper 38291, University Library of Munich, Germany.
    9. 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.
    10. Brady, Michael & Tantihkarkhana, Pitchayaporn, 2015. "Estimating the Value of Water from Property Sales in an Arid High Environmental Amenity Region: A Difference-in-Difference in Approach," 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California 205658, Agricultural and Applied Economics Association.
    11. Ying Tung Chan, 2019. "Optimal Environmental Tax Rate in an Open Economy with Labor Migration—An E-DSGE Model Approach," Sustainability, MDPI, vol. 11(19), pages 1-38, September.
    12. Waltert, Fabian & Schläpfer, Felix, 2010. "Landscape amenities and local development: A review of migration, regional economic and hedonic pricing studies," Ecological Economics, Elsevier, vol. 70(2), pages 141-152, December.

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