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

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Using a bioeconomic modeling approach to value environmental change in the black sea

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


Using a bioeconomic modeling approach to value environmental change in the black sea

The Black Sea Region


Management issues

Management issues

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?


Using a bioeconomic modeling approach to value environmental change in the black sea

Description of the Bioeconomic System under a Particular Environmental Regime


Using a bioeconomic modeling approach to value environmental change in the black sea

Invasive comb jelly “Mnemiopsisleidyi”


Using a bioeconomic modeling approach to value environmental change in the black sea

Key modeling relationships

(-)

(+)

  • 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. Mnemiopsis) as a “Regime Shift”


Using a bioeconomic modeling approach to value environmental 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


Using a bioeconomic modeling approach to value environmental change in the black sea

Economic Component of the Model, cont’d


Using a bioeconomic modeling approach to value environmental change in the black sea

Maximization Problem under Optimal Management

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 (R1) and After (R2) the Introduction of Mnemiopsis


Using a bioeconomic modeling approach to value environmental change in the black sea

Solution Expression for the Maximization Problem

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*:


Using a bioeconomic modeling approach to value environmental change in the black sea

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


Using a bioeconomic modeling approach to value environmental change in the black sea

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


Final functional form specifications

Final Functional Form Specifications


Using a bioeconomic modeling approach to value environmental change in the black sea

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


Using a bioeconomic modeling approach to value environmental change in the black sea

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

Source: Knowler and Barbier 2000


Using a bioeconomic modeling approach to value environmental change in the black sea

Epilogue


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


Using a bioeconomic modeling approach to value environmental change in the black sea

South Thompson River Catchment, BC

Fraser

River

S. Thompson River

Canada

Strait of Georgia

USA


Why a bioeconomic modeling approach

Why a Bioeconomic Modeling Approach?

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


Bioeconomic model of the coho salmon fishery

Bioeconomic model of the Coho Salmon Fishery


Bioeconomic model cont d

Bioeconomic model, cont’d


Bioeconomic model cont d1

Bioeconomic model, cont’d


Specification of relationships in the bioeconomic model

Specification of relationships in the bioeconomic model


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. Xt+1 = Xt= X

Golden

Rule

Adjoint

Equation


Habitat valuation using the bioeconomic model

Habitat valuation using the bioeconomic model


Table of parameter values c 1994

Table of Parameter Values (C$ 1994)


Using a bioeconomic modeling approach to value environmental change in the black sea

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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