Ecosystem Services in Competing Land Use Model with Infrastructure Effect

Ivan Telega ()
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Ivan Telega: Cracow University of Economics

Central European Journal of Economic Modelling and Econometrics, 2019, vol. 11, issue 2, 73-92

Abstract: The development of linear infrastructure increases the degree of fragmentation of natural areas and has a negative impact on biodiversity and the range of available ecosystem services. The basic competing land use model is expanded to include infrastructure development. The extended model leads to the conclusion that due to the dual impact of the infrastructure (lowering the value of ecosystem services and increasing the private rents to developed land), the size of the natural area in the long-term equilibrium will be lower compared to the basic model. The preservation of nature ceases to be profitable enough. Infrastructure also reduces the marginal costs of conversion and thus increasing the volume of natural land being converted at avery moment along the transition path. If the decisions on optimal management of natural areas and infrastructure development are undertaken together, the result is a lower density of the infrastructure network and a larger ecosystem area in the steady state.

Keywords: sustainability; land use change; optimal land conversion; ecosystem services (search for similar items in EconPapers)
JEL-codes: C61 Q24 Q57 (search for similar items in EconPapers)
Date: 2019
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Persistent link: https://EconPapers.repec.org/RePEc:psc:journl:v:11:y:2019:i:2:p:73-92

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