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Shallow lake economics run deep: nonlinear aspects of an economic-ecological interest conflict

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Abstract

Outcomes of the shallow lake long-term interest conflict in a number of different settings are presented, in particular in the contexts of quasi-static and dynamic social planning and of quasi-static non-cooperative play. Also the effect of trigger strategies in repeated quasi-static play is analysed. A characteristic feature of these interest conflicts, and of pollution problems in general, is the qualitative dichotomy in possible outcomes: the lake (or the ecosystem, or the climate) ends up in either a clean or in a polluted state, both of which, if attained, is stabilised by some kind of feedback mechanism. The social choice therefore always incorporates a qualitative aspect: the decision maker has to decide for or against production, for or against conserving the ecosystem. Copyright Springer-Verlag Berlin Heidelberg 2013

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  • Florian Wagener, 2013. "Shallow lake economics run deep: nonlinear aspects of an economic-ecological interest conflict," Computational Management Science, Springer, vol. 10(4), pages 423-450, December.
    • Handle: RePEc:spr:comgts:v:10:y:2013:i:4:p:423-450
    DOI: 10.1007/s10287-013-0191-5
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    2. Runyan, Christiane W. & D'Odorico, Paolo & Shobe, William, 2015. "The economic impacts of positive feedbacks resulting from deforestation," Ecological Economics, Elsevier, vol. 120(C), pages 93-99.
    3. Kiseleva, Tatiana & Wagener, F.O.O., 2010. "Bifurcations of optimal vector fields in the shallow lake model," Journal of Economic Dynamics and Control, Elsevier, vol. 34(5), pages 825-843, May.

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    JEL classification:

    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • C73 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Stochastic and Dynamic Games; Evolutionary Games
    • Q57 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Ecological Economics

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