Download The Economics of Marine Resources: Ecological

The Economics of Marine Resources:
Ecological-Economic Modeling of the
Marine Environment - Models and Management
Esbjerg, Denmark, 19-23 April 2010
Center for Fisheries and Aquaculture Management and Economics
(FAME), Denmark
Professor John Tschirhart
Department of Economics and Finance
University of Wyoming
Email – [email protected]
Class Meets – M-F, April 19-23
Course Description: Natural resources are central in our lives. As human population grows and
people aspire to better living standards, there are more people chasing fewer resources. All of us
are affected by the availability of water, minerals, forests, oil, coal and many other natural
resources, including fisheries. Like economic systems, ecological systems that contain
commercially fished species are very complex. Both economic and ecological systems are
comprised of many agents that make decisions and interact in numerous ways, and these
decisions and interactions determine the macro properties of the systems. Unfortunately,
ecologists and economists typically do not work together in understanding how the systems
themselves interact with each other. Ecologists abstract from the human economy and study
nature’s interdependencies, while economists abstract from nature and study human
interdependencies. Recently, however, researchers have stressed that ecological and economic
systems are jointly determined, because important ecological variables are dependent on
economic variables and vice versa. Consequently, there has been a move to study models that
integrate ecology and economics in order to capture the important feedbacks between the
systems. This course examines how economics and ecology interact and what the implications
are for the management of fisheries.
References in Bold are core readings!
Some Reference Texts
Clark C. 1976. (CC) Mathematical Bioeconomics: The Optimal Management of Renewable
Resources. 1st ed., 1990 2nd ed. New York: Wiley.
Conrad, Jon. 1999. (C) Resource Economics. Cambridge University Press: New York.
Conrad, Jon, Colin W. Clark. (CCC) 1987. Natural Resource Economics. Cambridge
University Press: New York.
Daily, Gretchen C. ed. Nature’s Services: Societal Dependence on Natural Ecosystems
(D),, 1997. Island Press: Washington, D.C.
Dasgupta P. 2001. Human Well-Being and the Natural Environment. Oxford: Oxford
University Press.
Dasgupta P, Mäler KG. (DM) 2004. The Economics of Non-Convex Ecosystems. The
Netherlands: Kluwer Academic Publishers.
Gurney WSC, Nisbet, RM (GN).1998. Ecological Dynamics. New York: Oxford University
Press.
Hanley, Nick, Jason F. Shogren, Ben White. 1997. Environmental Economics in Theory and
Practice. Oxford University Press: New York.
Hartwick JM, Olewiler ND. (HO) 1998. The Economics of Natural Resource Use. New York:
Addison-Wesley.
Kirkley, James, Tom Kompas, Dale Squires and R. Quentin Grafton. 2006. Economics for
Fisheries Management, Ashgate Studies in Environmental and Natural Resource Economics.
Burlington, Vermont, USA.
Kooten, G. Cornelis van and Erwin Bulte. Economics of Nature, Blackwell (KB), 2000.
Publishers: Malden, Mass.
Kot M. 2001. (K) Elements of Mathematical Ecology. Cambridge UK: Cambridge Univ.
Press.
Millenium Ecosystem Assessment 2005. Ecosystems and Human Well-being: Biodiversity
Synthesis. World Resources Institute, Washington, D.C.
Squires, Dale and Rita Curtis. 2007. Fisheries Buybacks. Blackwell Publishing, Ames, Iowa.
COURSE OUTLINE AND READINGS
Part I: Ecosystem Services
A. Overarching Services
i. Interaction of Climate and Life (D, 5)
i.a The Water Cycle
i.b The Carbon Cycle
i.c The Nitrogen Cycle
i.d The Sulfur Cycle
ii. Biodiversity and Ecosystem Function (D, 6) - Hooper, D.U., F.S. Chapin, III, J.J.
Ewel, A. Hector, P. Inchausti, S. Lavorel, J.H. Lawton, D.M. Lodge, M. Loreau, S. Naeem,
B. Schmid, H. Setala, A.J. Symstad, J. Vandermeer and D.A. Waddle 2005. ESA Report :
Effects of biodiversity on ecosystem functioning : a consensus of current knowledge.
Ecological Monographs. 75(1): 3-35.
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B. Major Aquatic Biomes
i. Marine Ecosystem Services (D, 10)
ii. Freshwater Ecosystem Services (D, 11)
C. Threats to Ecosystem Services
i. Vitousek, P.M., P.R.Ehrlich, A.H.Ehrlich and P.A.Matson. 1986. Human Appropriation
of the Products of Photosynthesis. BioScience, 36, 368-373.
ii. P. Dasgupta, 1995. The Population Problem: Theory and Evidence. Journal of
Economic Literature. December, 1879-1902.
iii. Arrow, K., Bolin, B.,Costanza, R., Dasgupta, P., Folke, C., Holling, C.S., Jansson,
B., Levin, S., Maeler, K., Perrings, C. & Pimentel, D. 1995. Economic growth, carrying
capacity and the environment. Science, 268, April, 520-21.
iv. Jackson JBC, Kirby MX, Berger WH, Bjorndal KA, Botsford LW, et al. 2001.
Historical overfishing and the recent collapse of coastal ecosystems. Science 293: 629-38.
v. Worm B, Barbier EB, Beaumont N, Duffy JE, Folke C, et al. 2006. Impacts of
biodiversity loss on ocean ecosystem services. Science 314(5800): 787-90.
vi. Biodiversity Loss - Millenium Ecosystem Assessment 2005. Ecosystems and Human
Well-being: Biodiversity Synthesis. World Resources Institute, Washington, D.C.
Part II: Motivation for Integrating Economics and Ecology
A. Are Humans too Smart to get into Trouble?
i. Daly, Herman. 1987. The Economic Growth Debate: What Some Economists Have
Learned But Many Have Not, J. Env. Econ. Mang., 323-336.
ii. Brander, James A. and M. Scott Taylor. 1998. The Simple Economics of Easter Island:
A Ricardo-Malthus Model of Renewable Resource Use, American Economic Review, March,
119-138.
B. Appeals for Integration and Ecosystem Approaches
i. Tschirhart, J. 2009. Integrated Ecological-Economic Models – Annual Review of
Resource Economics 28: 28.1-28.27.
ii. Perrings C. 1987. Economy and Environment. Cambridge UK: Cambridge U. Press.
iii. Crocker TD, Tschirhart J. 1987. Economic value of ecosystems. Trans. Amer. Fish.
Soc. 116: 469-78.
iv. Crocker TD, Tschirhart J. 1992. Ecosystems, externalities and economies. Envir..
Resource Econ. 2: 551-67.
v. Barbier EB, Burgess JC, Folke C. 1994. Paradise Lost? London: Earthscan.
vi. Brown G. 2000. Renewable natural resource management and use without
markets. J. Econ. Lit. 38: 875-914.
vii. Grafton, R. Quenton et al. 2006. Incentive-based approaches to sustainable fisheries.
Canadian J. Fisheries and Aquatic Sciences. 63: 699-710.
Part III: Bioeconomic Modeling - without ecological adaptive behavior
A. Single Species Growth and Fisheries
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i. Populations (K, 1)
ii. Basics (HO, 4, 5, 11)
iii. Economic Dynamics and Renewable Resource Mng. (vKB,6, 7 )
B. Lotka-Volterra and Multiple Species
i. (GN), (K) for reference texts on ecology sans economics.
ii. Berryman AA. 1992. The origins and evolution of predator-prey theory. Ecol. 73(5):
1530-35.
iii. Flaaten O. 1991. Bioeconomics of sustainable harvest of competing species. J. Env.
Econ. Mang. 20: 163-80.
iv. Hannesson R. 1983. Optimal harvesting of ecologically interdependent fish
species. J. Env. Econ. Mang. 10: 329-45.
v. Ströbele, WJ, Wacker H. 1991. The concept of sustainable yield in multi-species
fisheries. Ecol. Mod. (53): 61-74.
vi. Wilen JE, Brown GM. 1986. Optimal recovery paths for perturbations of trophic
level bioeconomic systems. J. Env. Econ. Mang. 13: 225-34.
vii. Wilen JE. 2000. Renewable resource economists and policy: what differences
have
we made? J. Env. Econ. Mang. 39: 306-27.
viii. Eichner T, Pethig R. 2006. A microfoundation of predator-prey dynamics. Nat.
Resource Mod. 19: 279-322.
Part IV: Bioeconomic Modeling - with ecological adaptive behavior
A. Ecology sans Economics
i. (DM), Chapters 1-4.
ii. Tschirhart, J. 2000. General Equilibrium of an Ecosystem. J. Theoret. Bio. 203,13-32.
iii. Finnoff D, Tschirhart J. 2008b. Growth functions for multiple species with predator
saturation and switching. Working paper, Univ. Wyoming.
iv. Tschirhart J. 2003. Ecological transfers parallel economic markets in a general
equilibrium ecosystem model. J. Bioecon. 5:193–214.
v. Tschirhart J. 2004. A new adaptive system approach to predator-prey modeling. Ecol.
Mod. 176: 255-76.
vi. Christiaans T, Eichner T, Pethig R. 2006. On the dynamics of Tschirhart’s predatorprey model. Ecol. Mod. 197: 52-58.
vii. Tschirhart, J. 2002. Resource competition among plants: from optimizing
individuals to community structure, Ecological Modelling 148: 191-212.
B. Ecology and Economics Integration
i. Brock WA, Xepapadeas A. 2002. Optimal ecosystem management when species
compete for limiting resources. J. Env. Econ. Mang. 44:189-220.
ii. Brock W. Finnoff D, Kinzig AP, Pascual U, Perrings C. et al. 2009. Modeling
biodiversity and ecosystem services in coupled ecological-economic systems. In Biodiversity
and Human Impacts, ed. S Naeem, D Bunker, A Hector, M Loreau, C Perrings. Oxford: Oxford
U. Press.
iii. Eichner T, Pethig R. 2006c. Efficient nonanthropocentric nature protection. Soc.
Choice Welfare 26: 47-74.
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iv. Eichner T, Tschirhart J. 2007. Efficient ecosystem services and naturalness in an
ecological/economic model. Env. Resource Econ. 37(4): 733-55.
v. Finnoff D, Tschirhart J. 2003a. Protecting an endangered species while harvesting its
prey in a general equilibrium ecosystem model. Land Econ. 79: 160-80.
vi. Finnoff D, Tschirhart J. 2003b. Harvesting in an eight species ecosystem. J. Env.
Econ.. Mang. 45(3): 589-611.
vii. Finnoff D, Tschirhart J. 2008. Linking dynamic ecological and economic general
equilibrium models. Resource Energy Econ., 30: 91-114.
C. Economic/Ecological Modeling of Pollution in a Fishery
i. Smith M, Crowder LB. 2005. Valuing ecosystem services with fishery rents: a lumpedparameter approach to hypoxia in the Neuse River Estuary. Presented at workshop: Linking
Economic and Ecological Models for Environmental Policy Analysis. Santa Fe, New Mexico.
ii. Finnoff D, Tschirhart J. 2005. Inserting Ecological Detail into Economic Analysis:
Agricultural Nutrient Loading of an Estuary Fishery. Presented at workshop: Linking Economic
and Ecological Models for Environmental Policy Analysis. Santa Fe, New Mexico, April.
D. Spatial Bioeconomic Models
i. Brown G, Roughgarden J. 1997. A metapopulation model with private property and a
common pool. Ecol. Econ. 22: 65-71.
ii. Conrad JM. 1999. The bioeconomics of marine sanctuaries. J. Bioecon. 1(2): 205-18.
iii. Costello C, Polasky S. 2008. Optimal harvesting of stochastic spatial resources. J.
Env. Econ.. Mang. 56: 1-18.
iv. Sanchirico J, Wilen J. 1999. Bioeconomics of spatial exploitation in a patchy
environment. J. Env. Econ. Mang. 37: 129-50.
v. Sanchirico J, Wilen J. 2005. Optimal spatial management of renewable resources:
matching policy scope to ecosystem scale. J. Env. Econ. Mang. 50: 23-46.
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