Harvesting in an integrated general equilibrium model

Thomas Eichner and Rüdiger Pethig

Volkswirtschaftliche Diskussionsbeiträge from Universität Siegen, Fakultät Wirtschaftswissenschaften, Wirtschaftsinformatik und Wirtschaftsrecht

Abstract: Harvesting of prey biomass is analyzed in an integrated ecological-economic system whose submodels, a predator-prey ecosystem and a simple economy, are microfounded dynamic general equilibrium models. These submodels are interdependent because the ecosystem responds to harvesting - through the reactions of optimizing individual organisms - by changing the provision of public ecosystem services to consumers. General analytical results are derived regarding the impact of harvesting policies on short-run equilibria of both submodels, on population dynamics, and on stationary states of the integrated model. A key insight is that prey biomass carries a positive ecosystem price which needs to be added as a tax mark-up to the economic price of harvested biomass to attain allocative efficiency. Further information on the dynamics is gained by resorting to numerical analysis of the policy regimes of zero harvesting, laissez-faire harvesting and efficient harvesting.

Keywords: predator; prey; biomass price; harvesting (search for similar items in EconPapers)
JEL-codes: Q20 Q57 (search for similar items in EconPapers)
Pages: 25 pages
Date: 2007
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Citations: View citations in EconPapers (9)

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Journal Article: Harvesting in an integrated general equilibrium model (2007)
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Persistent link: https://EconPapers.repec.org/RePEc:sie:siegen:127-07

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