Economics at your fingertips  

Landscape Outcomes in a Model of Edge Effect Externalities: A Computational Economics Approach

Dawn Parker

Working Papers from Santa Fe Institute

Abstract: This paper examines the impact of distance-dependent spatial externalities, referred to as "edge-effect externalities," on free-market equilibrium land use patterns. Under edge-effect externalities, maximization of production possibilities will depend on minimization of landscape fragmentation, implying that both the correct allocation and the correct arrangement of land uses will be necessary conditions for an economically efficient outcome. Using an agent-based cellular automaton model, this paper deminstrates that in an unregulated free-market without bargaining, both Pareto-efficient and inefficient equilibrium landscape patterns are possible. Initial configurations of firms, permanent geographic features, and transportation costs will impact final outcomes. Further, edge-effect externalities can produce economic landscapes which are more dispersed and fragmented than the pure Von Thunen outcome.

Keywords: Economic geography; spatial externalities; land-use (search for similar items in EconPapers)
Date: 1999-07
New Economics Papers: this item is included in nep-cmp and nep-evo
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5) Track citations by RSS feed

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Access Statistics for this paper

More papers in Working Papers from Santa Fe Institute Contact information at EDIRC.
Bibliographic data for series maintained by Thomas Krichel ().

Page updated 2020-11-27
Handle: RePEc:wop:safiwp:99-07-051