Environmental Restoration of Invaded Ecosystems: How Much Versus How Often?

This paper derives the optimal level of restorative efforts required to restore environments degraded by invasive species invasion. Specific attention is focused upon a case when the restoration efforts face the risk of failure through relapse of the restored environment. The level of restored environment may also play a role in its future improvement or susceptibility to failure. The tradeoff between the optimal level of environmental quality and number of restorative efforts required to attain that given environmental quality is analyzed.environmental restoration, resiliency, restoration failure, invasive species, Environmental Economics and Policy,

Resilience in Ecology and Belief

Replaced with revised version of paper 06/18/08. Former title: Non-Linearity in Belief and Environmental Risk DynamicsBelief dynamics, ecological hysteresis, water scarcity, groundwater dependent ecosystems, threshold effects, Environmental Economics and Policy, Resource /Energy Economics and Policy, Risk and Uncertainty,

Invasive Species Management through Tariffs: Are Prevention and Protection Synonymous?

Replaced with revised version of paper 12/15/05.Invasive Species, Political Economy, Tariffs, Bargaining, Interest Groups, International Relations/Trade, H23, Q17, Q58,

Economic Impacts of Pink Hibiscus Mealybug in Florida and the United States

Replaced with revised version of paper 12/15/05.Invasive Species, Political Economy, Tariffs, Bargaining, Interest Groups, International Relations/Trade, H23, Q17, Q58,

Economic Impacts of Pink Hibiscus Mealybug in Florida and the United States

This paper estimates the direct and indirect impacts of the Pink Hibiscus Mealybug infestation on the economies of Florida and the rest of the United States. The approach involves a Markov chain analysis wherein both short run and long run expected damages from infestation are calculated. Use is made of the CLIMEX model that predicts the potential pest-establishment regions in the US. While predictions based upon the CLIMEX model extend the scope of damages beyond Florida, the damages are dependent upon the rate of arrival and detection of species in those regions. Damages are significantly higher when a longer time horizon is considered. When nursery owners bear the full cost of quarantines in the form of loss of sales and treatment costs of infected plants, the cost-effectiveness of quarantines as a regulatory tool is diminished.Crop Production/Industries,

Decision Support System for Soybean Rust (Phakopsora pachyrhizi) Management using QnD

The objective of this project is to design a decision support system for soybean rust management using gaming software that incorporates farmer's decision making in the face of risks from soybean rust. Learning from past actions and neighbor's actions are also incorporated. Farmers observe rust outbreak in the current and past periods and decide over how much of land to allocate between soybean, corn and other crops. This decision is influenced by maximization of expected profits criterion which entails crop rotation choices that are based upon perceived risks, yield drags and input costs from altering optimum rotation patterns. Adoption of new technology in terms of selecting better rust management practices is also analyzed in an adaptive management framework. The software meets the need of guiding policy formulation besides training stakeholders in making economically sound choices in the absence of empirical data over pest infestation.Research Methods/ Statistical Methods,

Exit Timing Decisions under Land Speculation and Resource Scarcity in Agriculture

This paper explores the concept of agricultural resilience in the context of climate change related water scarcity. Specifically, the impact of water scarcity on agricultural production is analyzed to derive the timing of exit decisions for farmers faced with the prospect of declining profitability in agriculture but increasing benefits from land rezoning in future. The prospects of land rezoning are modeled as a poison process which may or may not be influenced by farmer’s water abstraction decisions. Selling out of agriculture before land rezoning has an impatience cost as the farmer does not gain the maximum speculative rewards. The analysis highlights the role of such speculative rewards in making farmers resilient to declining profitability in agriculture and also identifies the circumstances under which the water prices may be an ineffective policy tool for allocating water. An empirical application is performed using the above model for the case of a drought prone region in Western Australia.agricultural resilience, exit timing, water scarcity, climate change, Environmental Economics and Policy, Farm Management, Land Economics/Use, Resource /Energy Economics and Policy,

Private Responses to Public Incentives for Invasive Species Management

In this paper the impact of public policies such as subsidies and taxation on invasive species management is explored in a Markov chain framework. Private agents react to public incentives based upon their long term expected profits and have the option of taking measures such as abatement, monitoring and reporting. Conditions for perverse incentives are derived. The impact of sequencing of taxation and subsides on spread of risks if explored. One key finding of this paper is that excessive regulation may exacerbate the invasive species problem.invasive species, Markov process, perverse incentives, taxation and subsidies, Agricultural and Food Policy, Resource /Energy Economics and Policy,

Private Responses to Public Incentives for Invasive Species Management

In this paper the impact of public policies such as subsidies and taxation on invasive species management is explored in a Markov chain process framework. Private agents react to public incentives based upon their long term expected profits and have the option of taking measures such as abatement, monitoring and reporting. Conditions for perverse incentives are derived. The impact of sequencing of taxation and subsides on spread of risks is explored. One key finding of this paper is that excessive regulation may sometimes exacerbate the invasive species problemInvasive Species, Markov process, Perverse Incentives, Taxation and Subsidies, Agricultural and Food Policy, Agricultural Finance, Environmental Economics and Policy, Research Methods/ Statistical Methods,

Loss Aversion in Water Markets

Resource /Energy Economics and Policy,