In this paper, optimal management of the lake model and commonproperty outcomes are reconsidered when the lake model is extended with the slowly changing variable. New optimal trajectories are found that were hidden in the simplified analysis. Furthermore, it is shown that two Nash equilibria may exist with the one leading to the steady state with a high level of ecological services dominating the other…
Publication Keyword: pollution trap
Optimal Management of Ecosystem Services with Pollution Traps: The Lake Model Revisited
In this paper, optimal management of the lake model and common- property outcomes are reconsidered when the lake model is extended with a slowly changing variable (describing sedimentation and recycling of phosphorus), which is considered xed in the simplied version that has been used in the literature up to now. Some intuitive results are reconrmed but new optimal trajectories are found that were hidden in…
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