Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/45213 
Year of Publication: 
2007
Series/Report no.: 
UFZ Discussion Paper No. 1/2007
Publisher: 
Helmholtz-Zentrum für Umweltforschung (UFZ), Leipzig
Abstract: 
This paper is concerned with the cost-effective allocation of habitat for endangered species under spatio-temporally heterogeneous economic development. To address the dynamic dimension of the problem we consider tradable development rights (TDR) as the instrument of choice. A particular challenge in applying TDR is that the ecological benefit of an individual habitat patch depends on its spatial relationship with other habitats and thus is an emergent rather than a fixed property. We analyse the spatial and temporal dynamics of habitats in a region under a TDR market that takes spatial interaction of habitats explicitly into account. We show that depending on the levels of spatial interaction and cost heterogeneity, two different outcomes may emerge: an "ordered" structure where habitats are clustered in space and stable over time, and a "disordered" structure where habitats are scattered in space and subject to high turnover of destruction and recreation.
Subjects: 
ecological-economic model
cost heterogeneity
phase transition
spatial interaction
tradable development rights
JEL: 
Q24
Q28
Q57
Document Type: 
Working Paper

Files in This Item:
File
Size
378.37 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.