Economics of environmental regime shifts

Florian Wagener

No 13-08, CeNDEF Working Papers from Universiteit van Amsterdam, Center for Nonlinear Dynamics in Economics and Finance

Abstract: Economic consequences of critical transitions or regime shifts of ecological systems are a source of considerable concern. Though the underlying mechanisms are well-known, only since the advent of electronic computers the analysis of economic models exhibiting critical transitions can be attacked systematic- ally. In particular bifurcation theory allows to present the qualitative effects of parameter changes in a convenient way. This article gives an overview of recent economic literature dealing with potential environmental regime shifts with a focus on the lake model

Date: 2013
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