Template-Type: ReDIF-Paper 1.0
Series: Tinbergen Institute Discussion Papers
Creation-Date: 2007-11-06
Number: 07-085/3
Author-Name: Amitrajeet A. Batabyal
Author-Email: aabgsh@rit.edu
Author-Workplace-Name: Rochester Institute of Technology
Author-Name: Peter Nijkamp
Author-Email: pnijkamp@feweb.vu.nl
Author-Workplace-Name: Vrije Universiteit Amsterdam
Title: Optimal Resource Management in the Presence of a Deleterious Alien Species
Abstract: Various plants and resources such as orchards are vulnerable to the detrimental effects of successful invasions by alien animal or plant species. To outline an appropriate policy response, we first use renewal theory to construct a stochastic model of optimal orchard management in the presence of a deleterious alien species. Next, we derive the orchard manager’s long run expected cost (LREC) of orchard management per unit time. Finally, we show that when confronted with a successful biological invasion, the optimal number of trees that need to be removed and replanted in order to keep the orchard under study sustainable in the long run minimizes the LREC function mentioned above.
Classification-JEL: Q240; C440
Keywords: Alien Species; Long Run Expected Cost; Orchard Management; Uncertainty
File-Url: https://papers.tinbergen.nl/07085.pdf
File-Format: application/pdf
File-Size: 146178 bytes
Handle: RePEc:tin:wpaper:20070085