Bush Encroachment Control and Risk Management in Semi-Arid Rangelands

34 Pages Posted: 13 Dec 2010 Last revised: 10 Jun 2014

See all articles by Natalia Lukomska

Natalia Lukomska

University of Zurich - Faculty of Science - Institute of Evolutionary Biology and Environmental Studies

Martin F. Quaas

German Centre for Integrative Biodiversity Research (iDiv) Halle-Jena-Leipzig

Stefan Baumgärtner

University of Freiburg - Department of Environment and Natural Resources

Date Written: June 10, 2014

Abstract

We study the role of bush encroachment control for a farmer's income and income risk in a stochastic ecological-economic model of grazing management in semi-arid rangelands. In particular, we study debushing as an instrument of risk management that complements the choice of an adaptive grazing management strategy for that sake. We show that debushing, while being a good practice for increasing the mean pasture productivity and thus expected income, also increases the farmer's income risk. The optimal extent of debushing for a risk-averse farmer is thus determined from balancing the positive and negative consequences of debushing on intertemporal and stochastic farm income.

Keywords: Bush Encroachment, Expected Utility, Farm Income, Intertemporal Optimization, Risk Aversion, Risk Management, Semi-Arid Rangeland

JEL Classification: Q57, Q15

Suggested Citation

Lukomska, Natalia and Quaas, Martin F. and Baumgärtner, Stefan, Bush Encroachment Control and Risk Management in Semi-Arid Rangelands (June 10, 2014). Journal of Environmental Management, Forthcoming, Available at SSRN: https://ssrn.com/abstract=1724728 or http://dx.doi.org/10.2139/ssrn.1724728

Natalia Lukomska

University of Zurich - Faculty of Science - Institute of Evolutionary Biology and Environmental Studies ( email )

Winterthurerstrasse 190
Zurich, 8057
Switzerland

Martin F. Quaas

German Centre for Integrative Biodiversity Research (iDiv) Halle-Jena-Leipzig ( email )

Deutscher Platz 5e
Leipzig, 04103
Germany

HOME PAGE: http://www.idiv.de/bioecon

Stefan Baumgärtner (Contact Author)

University of Freiburg - Department of Environment and Natural Resources ( email )

Tennebacher Str. 4
Freiburg, 79106
Germany

HOME PAGE: http://www.ere.uni-freiburg.de

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