Policies to influence land use decisions in agriculture or grazing can increase the ability of invasive species to out-compete native species and thereby disrupt seemingly stable ecological-economic systems. Building off of models of interdependent resources, invasive species and soil fertility, this paper develops a model of shifting cultivation decisions for two types of farmers, one who sees the threat of invasive grasses and one who does not. The paper uses numerical solutions to this dynamic decision problem to examine the impact of various policies on farmer welfare and on the stability of the economic-ecological system. Some policies undermine the resilience of the system, while other policies augment the system s ability to withstand species invasions.
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