Externalities, Market Power, and Resource Extraction

This article analyzes the effect of market power in the presence of dynamic and biological externalities. When several countries harvest fish in international waters the evolution of fish population is affected by their joint action, thus generating a biological and a dynamic externality. If there is trade, the market-clearing prices depend on the harvesting and consumption in all countries. Therefore, market-clearing prices also generate an externality. We find a subgame perfect Cournot–Nash equilibrium and study the conditions under which it may be efficient. We also analyze the role of different externalities in generating inefficiency.     

Using a mathematical model to test the null hypothesis of optimal shell construction by four marine gastropods

A previous analysis (Heath 1985; Biol J Linn Soc 24: 165–174) tested and rejected the null hypothesis that gastropods construct their shells with optimal efficiency. The ratio volume of material used to volume of space enclosed (V _shell:V _space) was used as a measure of inefficiency of construction and shown to exhibit smooth parabolic curves if plotted as a function of whorl overlap. In the present analysis, in contrast, it is demonstrated that inefficiency of a particular combination of mode and rate of shell construction, consisting of variable interapertural areas and rapidly expanding whorl cross sections, is described by polynomial curves with inflection points. As an empirical test of this theoretically derived observation, V _shell:V _space of shells of four species of marine gastropods [Architectonica perspectiva (L., 1758), Cittarium pica (L., 1758), Euspira heros (Say, 1822), and Telescopium telescopium (L., 1758)] was calculated, using a mathematical model. By varying the vertical component of aperture trajectories [i.e. translation (T )] in the mathematical model, hypothetical forms representing a range of possible whorl overlap were simulated graphically and, for each form, V _shell:V _space was calculated. Plots of V _shell:V _space as a function of whorl overlap were described accurately by polynomial curves with inflection points, and each real shell yielded a nonoptimal V _shell:V _space, exhibiting approximately 75% less whorl overlap than its most efficiently constructed, hypothetical form. Inflection points of inefficiency curves represent critical points at which the reduction of space provided begins to exceed significantly the amount of material saved with increasing whorl overlap, and nonoptimal shell forms might represent compromises between efficient construction and function. Received: 26 June 1998 / Accepted: 17 March 1999     

Economics of harvesting age-structured fish populations

A generic age-structured model is developed to derive analytical results on optimal harvesting. Given two age classes, knife-edge selectivity, and no stock-dependent harvesting cost, the steady state is a unique saddle point. Adding harvesting cost does not alter the uniqueness, given that the utility is linear. Under specific conditions such as nonselective gear, optimal harvesting is proved to be a stationary cycle that represents pulse fishing. Optimal steady states are different if age-structured information is ignored and optimization is based on traditional biomass variables. This implies that the existence of optimal sustainable harvesting depends on age-structured information. Given a specific set of conditions such as low interest rate and knife-edge selectivity, optimal harvesting converges toward a unique saddle point independently of the number of age classes.     

Economics of harvesting age-structured fish populations

A generic age-structured model is developed to derive analytical results on optimal harvesting. Given two age classes, knife-edge selectivity, and no stock-dependent harvesting cost, the steady state is a unique saddle point. Adding harvesting cost does not alter the uniqueness, given that the utility is linear. Under specific conditions such as nonselective gear, optimal harvesting is proved to be a stationary cycle that represents pulse fishing. Optimal steady states are different if age-structured information is ignored and optimization is based on traditional biomass variables. This implies that the existence of optimal sustainable harvesting depends on age-structured information. Given a specific set of conditions such as low interest rate and knife-edge selectivity, optimal harvesting converges toward a unique saddle point independently of the number of age classes.     

Ecological and economic considerations on fishing and rearing of Tapes phillipinarum in the lagoon of Venice

A population dynamic model for Tapes philippinarum has been developed, using experimental data for the estimation of mortality, and literature information for recruitment. The population dynamic model has been coupled to a eco-physiological model of T. philippinarum previously developed, in order to simulate the evolution of individual size and number of individuals in each age class.The resulting age-size class model has been used to analyse the implication of different scenarios of fishing/harvesting of the bivalve in the lagoons of the Northern Adriatic Sea, where fishery and aquaculture represent important economic activities.Ten years long simulations have been performed, in which initial density, harvesting efficiency, minimum harvested size, were varied. Comparisons between the different strategies are made in term of total yields and bio-economic income. The model gives suggestions on the optimal fishing effort, in case of fishery, and on optimal seeding size and seeding moment, in case of aquaculture.A discussion of model results provides indications on harvesting policies which are appropriate from ecological-economical point of view. The final result is that economically more profitable strategies coincide with ecologically more conservative policies.     

Technical efficiency analysis of the conversion of cropland to forestland program in Jiangxi,Shaanxi, and Sichuan

Conversion of Cropland to Forestland Program (CCFP) has greatly impacted China’s agricultural sector, and more specifically rural farmers. While changes in living standards as a result of the implementation of the CCFP have been analyzed, little research has been conducted regarding the impacts of such policies on farming operations. As agriculture contributes nearly 10% of national GDP, it is important to analyze the implications of policies on a national industry. An input-oriented data envelopment analysis (DEA) model was used to examine the technical efficiency of farming operations following implementation of the CCFP, using survey data from farmers in Jiangxi, Shaanxi, and Sichuan provinces. Additionally, the impact of factors such as urbanization, age and education, and land fragmentation was examined with respect to farming operational efficiency. Scale inefficiency was found to have the greatest effect on overall inefficiency in farming operations in comparison to pure technical inefficiency, which was largely influenced by the presence and degree of land fragmentation of land holdings. Findings can be used to inform national land-use policies facilitating land fragmentation in China and address gaps in existing broader level studies that utilize non-parametric approaches to examine the technical efficiency of Chinese farmers affected by the CCFP.     

Can incomplete information lead to under-exploitation in the commons?

This paper analyzes the protection of a common pool resource (CPR) through the management of information. Specifically, we examine an entry deterrence model between an incumbent perfectly informed about the initial stock of a CPR and an uninformed potential entrant. In our model, the appropriation of the CPR by the incumbent reduces both players' future profits from exploiting the resource. In the case of complete information, we show that the incumbent operating in a high-stock common pool overexploits the CPR during the first period since it does not internalize the negative external effect that its first-period exploitation imposes on the entrant's future profits. This inefficiency, however, is absent when the commons totally regenerate across periods. Under incomplete information, we identify an additional form of inefficiency. In particular, the incumbent operating in a low-stock CPR underexploits the resource in order to signal the low available stock to potential entrants, deterring entry.     

The effects of forest harvest intensity in combination with wind disturbance on carbon dynamics in Lake States Mesic Forests

Total forest carbon (C) storage is determined by succession, disturbances, climate, and the edaphic properties of a site or region. Forest harvesting substantially affects C dynamics; these effects may be amplified if forest harvesting is intensified to provide biofuel feedstock. We tested the effects of harvest intensity on landscape C using a simulation modeling approach that included C dynamics, multiple disturbances, and successional changes in composition. We developed a new extension for the LANDIS-II forest landscape disturbance and succession model that incorporates belowground soil C dynamics derived from the CENTURY soil model. The extension was parameterized and calibrated using data from an experimental forest in northeastern Wisconsin, USA. We simulated a 9800 ha forested landscape over 400 years with wind disturbance combined with no harvesting, harvesting with residual slash left on site (‘standard harvest’), and whole-tree harvesting. We also simulated landscapes without wind disturbance and without eastern hemlock (Tsuga canadensis) to examine the effects of detrital quantity and quality on C dynamics. We estimated changes in live C, detrital C, soil organic C, total C, and forest composition. Overall, the simulations without harvesting had substantially greater total C and continued to sequester C. Standard harvest simulations had more C than the whole tree harvest simulations. Under both harvest regimes, C accrual was not evident after 150 years. Without hemlock, SOC was reduced due to a decline in detritus and a shift in detrital chemistry. In conclusion, if the intensity of harvesting increases we can expect a corresponding reduction in potential C storage. Compositional changes due to historic circumstances (loss of hemlock) may also affect forest C although to a lesser degree than harvesting. The modeling approach presented enabled us to consider multiple, interacting drivers of landscape change and the subsequent changes in forest C.     

Can incomplete information lead to under-exploitation in the commons?

This paper analyzes the protection of a common pool resource (CPR) through the management of information. Specifically, we examine an entry deterrence model between an incumbent perfectly informed about the initial stock of a CPR and an uninformed potential entrant. In our model, the appropriation of the CPR by the incumbent reduces both players' future profits from exploiting the resource. In the case of complete information, we show that the incumbent operating in a high-stock common pool overexploits the CPR during the first period since it does not internalize the negative external effect that its first-period exploitation imposes on the entrant's future profits. This inefficiency, however, is absent when the commons totally regenerate across periods. Under incomplete information, we identify an additional form of inefficiency. In particular, the incumbent operating in a low-stock CPR underexploits the resource in order to signal the low available stock to potential entrants, deterring entry.     

Liability Transfers: An Economic Assessment of Buyer and Lender Liability

This paper examines the conditions under which it is efficient to transfer liability for contamination of a given piece of property from the seller to the buyer at the time of sale and then, for debt-financed sales for which there is a foreclosure, subsequently to the lender who has financed the purchase. We identify two key potential sources of inefficiency, which depend on the relative probabilities that the parties will be judgment-proof at the time liability is imposed. The results suggest that the efficiency effects of liability transfers will depend on the relative magnitudes of these two sources of inefficiency.     

Optimal exploitation of a fishery employing a non-linear harvesting function

A harvesting function is developed to described the rate of removal of fish from a fish population. The function incorporates the effects of both the handling or processing time of the catch and the competition, between boats in the fleet, for the fish.We will assume that the growth rate of the fish population can be modelled with a concave, dome shaped growth curve. With this assumption, it has been shown that if the rate of harvesting the fish is linearly related to both effort (which can be thought of as some measure of the number of boats in the fleet) and the population size, then the population will tend towards a single equilibrium level which is globally stable. This paper shows that the saturation effects due to the handling time may generate two equilibrium levels (one stable, one unstable) rather than a single globally stable equilibrium. The results of competition between boats are economically undesirable because of the decrease in efficiency. However, this competition may be beneficial to the exploited fish population.Using the harvesting model derived earlier, the steady state or long term optimal harvesting policies as well as the transition paths to these states are developed. The only constraint is on the maximum allowable effort which is effectively an upper limitation on the fleet size or number of man-hours of fishing.     

Efficient and sustainable management of complex forest ecosystems

A large range of models has been developed for the analysis of optimal forest management strategies, with the well-known Faustmann models dating back to the mid-19th century. To date, however, there has been relatively little attention for the implications of complex ecosystem dynamics for optimal forest management. This paper examines the implications of irreversible ecosystem responses for efficient and sustainable forest management. The paper is built around two forest models that comprise two ecosystem components, forest cover and topsoil, the interactions between these components, and the supply of the ecosystem services ‘wood’ and ‘erosion control’. The first model represents a forest that responds in a reversible way to overharvesting. In the second model, an additional ecological process has been included and the ecosystem irreversibly collapses below certain thresholds in forest cover and topsoil depth. The paper presents a general model, and demonstrates the implications of pursuing efficient as well as sustainable forest management for the two forest ecosystems. Both fixed and variable harvesting cycles are examined. Efficient and sustainable harvesting cycles are compared, and it is shown that irreversible ecosystem behaviour reduces the possibilities to reconcile efficient and sustainable forest management through a variable harvesting cycle.     

Effects of Harvesting Flowers from Shrubs on the Persistence and Abundance of Wild Shrub Populations at Multiple Spatial Extents

Abstract: Wildflower harvesting is an economically important activity of which the ecological effects are poorly understood. We assessed how harvesting of flowers affects shrub persistence and abundance at multiple spatial extents. To this end, we built a process‐based model to examine the mean persistence and abundance of wild shrubs whose flowers are subject to harvest (serotinous Proteaceae in the South African Cape Floristic Region). First, we conducted a general sensitivity analysis of how harvesting affects persistence and abundance at nested spatial extents. For most spatial extents and combinations of demographic parameters, persistence and abundance of flowering shrubs decreased abruptly once harvesting rate exceeded a certain threshold. At larger extents, metapopulations supported higher harvesting rates before their persistence and abundance decreased, but persistence and abundance also decreased more abruptly due to harvesting than at smaller extents. This threshold rate of harvest varied with species’ dispersal ability, maximum reproductive rate, adult mortality, probability of extirpation or local extinction, strength of Allee effects, and carrying capacity. Moreover, spatial extent interacted with Allee effects and probability of extirpation because both these demographic properties affected the response of local populations to harvesting more strongly than they affected the response of metapopulations. Subsequently, we simulated the effects of harvesting on three Cape Floristic Region Proteaceae species and found that these species reacted differently to harvesting, but their persistence and abundance decreased at low rates of harvest. Our estimates of harvesting rates at maximum sustainable yield differed from those of previous investigations, perhaps because researchers used different estimates of demographic parameters, models of population dynamics, and spatial extent than we did. Good demographic knowledge and careful identification of the spatial extent of interest increases confidence in assessments and monitoring of the effects of harvesting. Our general sensitivity analysis improved understanding of harvesting effects on metapopulation dynamics and allowed qualitative assessment of the probability of extirpation of poorly studied species.     

The sensitivity of carbon sequestration to harvesting and climate conditions in a temperate cypress forest: Observations and modeling

The role of disturbance and climate factors in determining the forest carbon balance was investigated at a Japanese cypress forest in central Japan with eddy flux measurements, tree-ring analyses, and a terrestrial biosphere model. The forest was established as a plantation after intermittent harvesting and replanting between 1959 and 1977, and acted as a strong carbon sink of approximately 500 g C m⁻² year⁻¹ for the measurement years between 2001 and 2007. A terrestrial biosphere model, BIOME-BGC, was validated using the eddy flux data at daily to interannual timescales, and the tree-ring width data at interannual to decadal timescales. According to the model simulation, during the observation period 270 ± 55 g C m⁻² year⁻¹ was additionally sequestered due to the indirect effects of the harvesting and planting, whereas the increase of CO₂ concentration and the change in climate increased the sink of 110 ± 40 and 30 ± 80 g C m⁻² year⁻¹, respectively. The model simulation shows that the forest is now recovering from harvesting, and that harvesting is a more important determinant of the current carbon sink than either interannual climate anomalies or increased atmospheric CO₂ concentration. We found that harvesting with long rotation length could be effective management activity in order to increase carbon sequestration, if the harvested timber is converted into products with long lifecycles.     

Socially optimal forestry

The Faustmann rule is the major contribution of economic theory to the analysis of forestry management. It is typical to consider the Faustmann rule in the context of a model of a forestry firm in which there is some periodicity in the rate of harvesting over time. This paper on the other hand shows the Faustmann rule to be associated with socially optimal sustained yield or steady-state regimes. In the course of so doing, attention is placed on the role of the shadow price of a tree in the determination of an optimal harvesting policy.     

The development of secondary industries through the sustainable utilisation of reeds and forest timber in the Tembe Elephant Park,Maputaland, South Africa

The harvesting of Phragmites australis reeds in the Tembe Elephant Park has to be managed pro-actively. Solutions to potential problems should be sought before they arise. This paper offers a potential solution to the problem of instating a winter-only reed harvest in the Muzi Swamp. The potential for manufacturing finished products such as prefabricated huts from sustainably harvested reeds and forest timber is examined and a cost estimate is presented. A prefabricated reed hut is three-times cheaper than a similarly-sized house made of bricks and cement. The manufacturing of finished products from the harvested material will add secondary value to the resource and also offer an alternative employment to harvesting reeds in the summer. The higher prices obtained for a processed article will also, hopefully, reduce the demand for the resource in its raw form, thereby increasing the perceived value of the resource and reducing wastage from raw materials that are not sold.     

Environmental data management: The identification of outliers

Increased emphasis on pollution control and abatement has often necessitated development of large scale data bases. While sophisticated techniques have been developed and employed for data storage and manipulation, parallel developments in analyzing the accuracy and reliability of the data have been absent (see, for instance, the broad spectrum of requirements outlined in the Federal Water Pollution Control Act Amendments of 1972).This paper centers on the latter and sets out a procedure for data editing and “outlier” identification based on an application of discriminant analysis. A hypothetical example is included along with some suggested applications.     

Ungulate population dynamics and optimization models

Optimal harvesting strategies for an ungulate population are estimated using stochastic dynamic programming. Data on the Llano Basin white-tailed deer (Odocoileus virginianus) population were used to construct a 2-variable population dynamics model. The model provided the basis for estimating optimal harvesting strategies as a feedback function of the current values of the state variables (prefawning older deer and juveniles). Optimal harvest strategies were insensitive to assumptions about the probability distributions of the stochastic variable (rainfall). The response of the population components to harvesting and the returns obtained from applying optimal strategies were explored through simulation. Mean annual harvest is about 15% of the population. Simplified harvesting strategies based on age-ratios as well as a simplified version based on optimal strategies—but assuming persisting equilibrium juvenile deer density—were compared to optimal strategies through examining values of information. Simplified harvesting strategies lead to a lower harvest over a 50-year simulation period.     

Optimal harvesting of a plant-hervibore system: lichen and reindeer in northern Finland

The optimal harvesting policy for a plant-herbivore system consisting of lichen and reindeer in Finnish Lapland is investigated. Using a discrete time model with no age structure it is shown that the optimal procedure to reach target levels for lichen and reindeer involves a possible initial harvest of reindeer and then a sequence of no-harvesting years until the lichen has recovered. After two adjusting harvests the system will settle to an equilibrium. The optimal solution is compared with the fastest possible approach to the target levels. The two solutions coincide if future yields are sufficiently discounted. With a discount factor near one there will be a heavier initial harvest in the optimal solution. It is seen that allowing some harvesting also in the no-harvesting years has no marked effect on the total yield. The target levels for lichen and reindeer are not unique but depend both on discounting and on the length of the planning period.     

Binding of phthalates with nuclease increases DNA enzymatic degradation and implication for antibiotic resistance

Environmental Chemistry Letters - The overuse of antibiotics has widely induced the development of antibiotic resistance in pathogens and, in turn, has induced the inefficiency of antibiotic drugs,...