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Solving ecological management problems using dynamic programming [An article from: Journal of Economic Behavior and Organization]
By: L. Grune M. Kato W. Semmler
ISBN-10: B000RR55OC    ISBN-13: N/A
Publisher: Elsevier
Digital | List Price: $8.95 (USD)

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This digital document is a journal article from Journal of Economic Behavior and Organization, published by Elsevier in . The article is delivered in HTML format and is available in your Amazon.com Media Library immediately after purchase. You can view it with any web browser.

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We study an ecological management problem where the interaction of the maximizing-welfare dynamic decision and the dynamics of the ecosystem admits multiple equilibria. We follow the example of a shallow lake by Brock, etc. Low loading preserves resilience of the ecosystem while high loading may lead to the deterioration of the ecosystem. We consider instruments of a regulatory agency that may help to maintain and enhance resilience by enlarging the domain of attraction of the low-pollution equilibrium. The global dynamics of all our model variants, without and with tax rates, are analytically studied by the Hamilton-Jacobi-Bellman method and numerically solved through dynamic programming.


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