Controlling a biological invasion: a non-classical dynamic economic model
type: Item
instance of: scholarly article
title: Controlling a biological invasion: a non-classical dynamic economic model
zbMATH Open document ID: 1148.91032
author: Lars J. Olson
author: Santanu Roy
published in: Economic Theory
publication date: 2008-07-30T00:00:00Z
review text: The purpose of this paper is to analyze the economics of controlling a biological invasion, the objective being to minimize the discounted sum of social costs associated to damages and control costs. The authors start by constructing a control model and providing an analysis of its long-run behaviour. This model cannot be transformed into a standard optimal growth or resource management problem, as it includes non-convexity and state-dependence in the objective function and a negative shadow price of the biological capital stock. Then, the question of when to control, which is specially relevant in nonconvex models, is considered. The paper characterizes the limiting outcomes under an optimal policy by examining conditions under which the optimal policy leads to: (i) eradication of the invasion from any size, (ii) eradication of small invasions but not large invasions and (iii) non eradication. These conditions are given in terms of the ecological and economical fundamentals of the model: the biological growth of the invasion, control costs, damages and the social discount rate. The paper shows the importance of the initial invasion size in determining the optimal policy and illustrates the information that is needed to evaluate the economic efficiency of invasive species control.
reviewed by: Eva Sánchez
Mathematics Subject Classification ID: 91B62
zbMATH DE Number: 5306274
zbMATH Keywords: intertemporal allocation
zbMATH Keywords: nonconvexities
zbMATH Keywords: biological invasion
zbMATH Keywords: renewable resource economics
zbMATH Keywords: invasive species
Wikidata QID: Q56773767
MaRDI profile type: Publication
full work available at URL: s00199-007-0281-0
OpenAlex ID: W2138481144
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DOI: 10.1007/S00199-007-0281-0
description: scientific article; zbMATH DE number 5306274