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The devil in the details: Non-convexities in ecosystem service provision

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  • Brown, Gardner
  • Patterson, Trista
  • Cain, Nicholas

Abstract

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.

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  • Brown, Gardner & Patterson, Trista & Cain, Nicholas, 2011. "The devil in the details: Non-convexities in ecosystem service provision," Resource and Energy Economics, Elsevier, vol. 33(2), pages 355-365, May.
    • Handle: RePEc:eee:resene:v:33:y:2011:i:2:p:355-365
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    Cited by:

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    2. Barbara Langlois & Vincent Martinet, 2023. "Defining cost-effective ways to improve ecosystem services provision in agroecosystems," Review of Agricultural, Food and Environmental Studies, Springer, vol. 104(2), pages 123-165, June.
    3. 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.
    4. Ruijs, A. & Wossink, A. & Kortelainen, M. & Alkemade, R. & Schulp, C.J.E., 2013. "Trade-off analysis of ecosystem services in Eastern Europe," Ecosystem Services, Elsevier, vol. 4(C), pages 82-94.
    5. Blachly, Ben & Sims, Charles & Warziniack, Travis, 2024. "Ecosystem complementarities: Evidence from over 700 U.S. watersheds," Ecological Economics, Elsevier, vol. 219(C).
    6. Horatiu A. Rus, 2016. "Renewable Resources, Pollution and Trade," Review of International Economics, Wiley Blackwell, vol. 24(2), pages 364-391, May.
    7. Lambini, Cosmas Kombat & Nguyen, Trung Thanh & Abildtrup, Jens & Pham, Van Dien & Tenhunen, John & Garcia, Serge, 2018. "Are Ecosystem Services Complementary or Competitive? An Econometric Analysis of Cost Functions of Private Forests in Vietnam," Ecological Economics, Elsevier, vol. 147(C), pages 343-352.

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