Using a Bioeconomic Modeling Approach to Value Environmental Change in the Black Sea
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Using a Bioeconomic Modeling Approach to Value Environmental Change in the Black Sea. Duncan Knowler School of Resource and Environmental Management Simon Fraser University, Canada. The Black Sea Region. Management issues. Need to address nutrient loads and fisheries

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Using a Bioeconomic Modeling Approach to Value Environmental Change in the Black Sea

Duncan Knowler

School of Resource and Environmental Management

Simon Fraser University, Canada


The Black Sea Region Change in the Black Sea


Management issues
Management issues Change in the Black Sea

Need to address nutrient loads and fisheries

Some fish species have a complex interaction with nutrients

Presence of invasive spp can further complicate matters

Research question: what is welfare change associated with nutrient abatement under alternative invasive species assumptions (present/not present)

Response is to model this system using a bioeconomic modeling approach

Consider optimal management: what fish escapement policy is optimal in each case?


Description of Change in the Black Seathe Bioeconomic System under a Particular Environmental Regime


Invasive comb jelly Change in the Black Sea“Mnemiopsisleidyi”


Key modeling relationships Change in the Black Sea

(-)

(+)

  • Main issues:

  • How to model the influence of Mnemiopsis under a nutrient enrichment situation?

  • How should the commercial fisheries be managed (escapement )?

?


Modeling an environmental disturbance e g mnemiopsis as a regime shift
Modeling an Environmental Disturbance (e.g. Change in the Black SeaMnemiopsis) as a “Regime Shift”


- Change in the Black Sea

q

E

h

X

=

(

1

-

e

)

t

t

t

1

E

X

X

h

=

[ln

(

)

-

ln

(

-

)

]

q

t

t

t

t

Economic Component of the Model

St = Xt – htor ht = Xt - St



Maximization Problem under Optimal Management Change in the Black Sea

Ri (St,Pt)


Variants of the recruitment function before r 1 and after r 2 the introduction of mnemiopsis
Variants of the Recruitment Function, Before ( Change in the Black SeaR1) and After (R2) the Introduction of Mnemiopsis


Solution Expression for the Maximization Problem Change in the Black Sea

Substituting functional forms into the solution, assuming P is fixed and dividing the resulting expression by p/p, gives an implicit statement for optimal escapement ,S*:


Estimated Black Sea Anchovy Stock-Recruitment Change in the Black SeaFunction using the Ricker Model Using Data from 1968-93


Alternative Environmental Regimes in the Black Sea: (1) Pre-enrichment, (2) Pre-Mnemiopsis, and (3) Mnemiopsis


Final functional form specifications
Final Functional Form Specifications Pre-enrichment, (2) Pre-


Long Run Equilibrium Values for the Black Sea Pre-enrichment, (2) Pre-Anchovy Fishery under Optimal Management and Pre- and Post-invasion Conditions (US$ 1989/90)


Producers Surplus in the Black Sea Anchovy Pre-enrichment, (2) Pre-Fishery for the Pre-Mnemiopsisand Mnemiopsis Periods (US $’000, 1990 prices)

Source: Knowler and Barbier 2000


Epilogue Pre-enrichment, (2) Pre-


Valuing freshwater salmon habitat on the west coast of canada

Valuing Freshwater Salmon Habitat on the West Coast of Canada

Duncan Knowler

School of Resource and Environmental Management Simon Fraser University


Salmon habitat case study bioeconomic model approach to valuation
Salmon Habitat Case Study: Bioeconomic Model Approach to Valuation

  • Setting up the valuation problem as a bioeconomic model

  • Linking habitat quality to salmon recruitment in the South Thompson River (B.C.) drainage area

  • Results for an optimally managed coho salmon fishery versus historical values for entire Georgia Strait fishery

  • Valuation results for salmon habitat in the South Thompson River drainage area


South Thompson River Catchment, BC Valuation

Fraser

River

S. Thompson River

Canada

Strait of Georgia

USA


Why a bioeconomic modeling approach
Why a Bioeconomic Modeling Approach? Valuation

Can take a ecological-economic system approach (e.g. Strait of Georgia fishery)

Allows for economic and biological ‘adjustment’ as habitat changes

Can assess habitat values assuming efficient management

Proper welfare measurement is possible






Solution of the bioeconomic model at the steady state i e x t 1 x t x
Solution of the bioeconomic model at the steady state, i.e. ValuationXt+1 = Xt= X

Golden

Rule

Adjoint

Equation




Schematic Diagram of the Simulation Procedure to the Impact of Habitat Change on Fisheries in the South Thompson River Basin, BC


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