Invasive species and the intersection of Biology and Economics: A presentation based upon the book "Bioeconomics" by Keller Lodge et al 2009 OUPv

1. Integrating Ecology, Economics, Policy & Management
BIO-ECONOMICS OF
INVASIVE SPECIES
Presentation based upon book: edited by
Reuben P. Keller, David M. Lodge, Mark A.
Lewis and Jason F. Shogren UOP 2009
John Peter Thompson 2009

2. WHY BIO-ECONOMICS?
Balancing flow of damage, until next
control, delaying control, and controlling
costs and damages between controls

3. Multidisciplinaryapproach

5. Bringing biology (ecology) & economics
together
 Framework for endogenous risk
http://en.wikipedia.org/wiki/File:Complex-adaptive-system.jpg

6.  manager’s investment in control
 investment in prevention (non-
exclusive & non-rival consumption)
 random uncertainty variable
 research in/for the public good
 endowed wealth
x
Q
θ
Β
M
Assumptions

7.  probability of a good state of nature,
no damage from invasive species
 probability of a bad state, damage
from invasive species
 money equivalent of realized
damages
 distribution of support bounded by
(a,b) research to reduce
 control
P(Q; θ)
1 - P(Q; θ)
D(x; θ)
F(θ; β)
c(Q, x)
Functions

8.  social value of good state of
nature
 Net wealth
 social value bad state of nature
 change in damages affect
social welfare

V0[m-c(Q, x )]
w = m-c(Q, x)
V1[m - D(x, θ)
-- c(Q, x)
V2[m-c(Q, x);
D(x; θ)]
Functions

9. Bioeconomics of
Invasive Species
Integrating Ecology,
Economics, Policy,
and Management
Edited by Reuben P.
Keller, David M.
Lodge, Mark A.
Lewis and Jason F.
Shogren
Endogenous
Risk Model
Challenges
•Irreversibility of outcomes
•Uncertainty over time
•Timing of investments or
action

10. THE ROLE OF UNCERTAINTY

11. “…function generally requires the
consideration of opinions of experts or
expert groups, of experience gained from
comparable problems, and of additional
information where necessary…”
Linguistic & eco-biological uncertainty
“…any study of biological complexity is
rooted in the knowledge of biological
reality, an expression for possible limit of
human knowledge about ontological
biological reality…”
© Institute of Statics and Dynamics of Structures (TU Dresden)
© Copyright by Luis Mateus Rocha 1997
The Smithsonian/NASA Astrophysics Data System

12. Opportunitycosts
SUPPLY
DEMAND
QUANTITY
PRICE
Consumer surplus
Production surplus

13. Underestimating infinity
SUPPLY
DEMAND
QUANTITY
PRICE
Consumer surplus
Production surplus

14. MODELS & DECISIONS
Uncertainty and the potential of models
http://www.gapingvoidgallery.com/images/quality005jGIF.gif

16. Entropy
Measuring
Uncertainty
Our
uncertainty is
expressed
quantitatively
by the
information
which we do
not have
about the
state
occupied.
Entropy, because it is expressed in
terms of probabilities, depends on
the observer. One person may have
different knowledge of the system
from another, and therefore would
calculate a different numerical value
for entropy.
http://www.mtl.mit.edu/Courses/6.050/2003/notes/chapter10.pdf

17. BN = economic benefit
of introducing new
species
Θ = new species
VT = annual value of
trade in new species
α = number of
invaders/number of
introduced species
A = proportional risk
assessment
D = annual cost of
administrating risk
assessment
Trait based
assessment
Economic model
trait based risk assessmaent
Integrating Ecology, Economics, Policy, and Management
Edited by Reuben P. Keller, David M. Lodge, Mark A. Lewis and Jason F.
Shogren

18. Models
“How much
population
biology is
needed to
manage
invasive
species?”
(Simberloff 2003)
•Niche
•Gravity
•Random utility
•Reaction-diffusion
•Spatial-phenemological
•

19. Behaviorchoices
inadynamic
system
x(t) =
u(t)=
du/dt=
•time dependent state variable
(invader abundance)
•control strategies in aggregation
•change in abundance to the change in
control strategies
Integrating Ecology, Economics, Policy, and Management
Edited by Reuben P. Keller, David M. Lodge, Mark A. Lewis and Jason F. Shogren

20. INTEGRATING ASSESSMENTS
~Environecobiopragmophilosophic ~

22. SUSTAINABILITY
thesuperwicked problem
INVASIVE SPECIES
ENERGY
CLIMATE CHANGE
POPULATION

23. • Freedom to innovate
• Objectivity
• Comprehensiveness
• Openness/Transpare
ncy
• Simplicity
 Shift the burden of
proof
 Scientific
uncertainty
 Recognize diverse
positions
 Least-harmful
solution
 Duty to take action

24. Science alone
does not set
management or
policy goals, but
informs them
Translate
research into
user-friendly
language
Create personal
networks
Change is not
instantaneous
Focus on the
immediately
relevant