Pattern Formation, Spatial Externalities and Regulation in Coupled Economic-Ecological Systems

William Brock and Anastasios Xepapadeas

MPRA Paper from University Library of Munich, Germany

Abstract: We develop a novel theoretical framework for studying ecosystems in which interacting state variables which are affected by management decisions diffuse in space. We identify (i) mechanisms creating spatial patterns when economic agents maximize profit at each site by ignoring the impact of their actions on other sites and (ii) a diffusion induced externality. Pattern formation mechanisms and externalities create a divergence in the spatiotemporal structures emerging under private or social objectives We develop optimal regulation which internalize the spatiotemporal externalities. Our theory is applied to the management and regulation of a semi-arid system. Supporting numerical simulations are also presented.

Keywords: Economic-Ecological Systems; Pattern Formation; Reaction-Diffusion; Diffusion Instability; Spatial Externalities; Regulation (search for similar items in EconPapers)
JEL-codes: C61 H23 Q20 (search for similar items in EconPapers)
Date: 2008-06-11
New Economics Papers: this item is included in nep-env and nep-reg
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

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Related works:
Journal Article: Pattern formation, spatial externalities and regulation in coupled economic-ecological systems (2010)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:9105

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