Spatial patterns of biodiversity conservation in a multiregional general equilibrium model |
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Authors: | Florian V. Eppink Cees A. Withagen |
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Affiliation: | 1. UFZ - Helmholtz Centre for Environmental Research, Department of Economics, Permoserstraße 15, 04318 Leipzig, Germany;2. Institute for Environmental Studies, VU University Amsterdam, Amsterdam, The Netherlands;3. Department of Spatial Economics, VU University Amsterdam, Amsterdam, The Netherlands;4. Department of Economics, Tilburg University, Tilburg, The Netherlands |
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Abstract: | Migration dynamics and local biodiversity are interrelated in a way that is likely to affect patterns of regional specialisation. We assess this relationship with a New Economic Geography model that has been extended with biodiversity. Biodiversity is heterogeneous, and responds to habitat availability. The results indicate that a symmetric pattern of regional specialisation is more likely, and that additional equilibria may emerge as the marginal utility of biodiversity increases. In the policy analysis we focus on the case where the overall social optimum is symmetric and show that it can be supported as a non-cooperative Nash equilibrium. However, multiple Nash equilibria may exist. |
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