116-04
 
Universität Siegen 
Fachbereich Wirtschaftswissenschaften, Wirtschaftsinformatik und Wirtschaftsrecht
Volkswirtschaftliche Diskussionsbeiträge
Thomas Eichner und Rüdiger Pethig
Economic 
      
      land use, ecosystem services and microfounded species dynamics
        
      In an integrated 
        
        economy-ecosystem model humans choose their land use and leave the residual 
        
        land as habitat for three species forming a food chain. The size of habitat 
        
        determines the diversity and abundance of species. That biodiversity generates, 
        
        in turn, a flow of ecosystem services with public-good characteristics 
        
        for human consumption. The ecosystem submodel yields (rather than assumes!) 
        
        population growth functions with each species' growth depending on the 
        
        size of habitat. First the relationship between habitat and species growth 
        
        (sustenance, decline and extinction) is explored. The laissez-faire economy 
        
        is shown to result in an underprovision of habitat making the case for 
        
        land use restrictions for nature protection. The optimal land use policy 
        
        is characterized with full regard of ecosystem dynamics. Finally, labor-augmenting 
        
        technical change is introduced to generate ever increasing pressure towards 
        
        further habitat reductions. In the laissez-faire economy the habitat is 
        
        consequently squeezed to zero in the long-run so that all species are 
        
        doomed. Social optimality demands, however, to refrain from using all 
        
        land for economic purposes despite ever growing labor productivity.
 
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