The Economics of a 'Mixed Blessing' Effect: A Case Study of the Black Sea

46 Pages Posted: 7 Feb 2002

See all articles by Duncan Knowler

Duncan Knowler

Simon Fraser University (SFU) - School of Resource and Environmental Management

Edward B. Barbier

Colorado State University, Fort Collins - Department of Economics

Date Written: January 2002

Abstract

Nutrient enrichment of marine ecosystems is regarded as a pressing global environmental problem. For certain marine species it may be a mixed blessing, resulting in damaging ecosystem events, but contributing to primary productivity. Consequently, the impact of enrichment on fishery profits may be positive or negative. This paper develops a method for analyzing such problems, using the example of the Black Sea anchovy fishery. Employing a bioeconomic model that incorporates nutrients directly into fish population dynamics, the problem is formulated in deterministic and stochastic terms. The deterministic model assumes a given ecological state in which nutrients contribute positively to pelagic fish production. The stochastic model recognizes that the planner may take into account the probability of potentially damaging shifts in ecological states due to nutrient enrichment. In this latter model, nutrient abatement has an indeterminate welfare effect, but under certain conditions a marginal change in nutrients generates positive aggregate benefits.

Keywords: Nutrients, Black Sea, Mnemiopsis, anchovy, eutrophication, stochastic, economics, valuation, bioeconomic, Turkey

JEL Classification: Q2, Q20, Q22

Suggested Citation

Knowler, Duncan and Barbier, Edward B., The Economics of a 'Mixed Blessing' Effect: A Case Study of the Black Sea (January 2002). FEEM Working Paper No. 3.2002. Available at SSRN: https://ssrn.com/abstract=299622 or http://dx.doi.org/10.2139/ssrn.299622

Duncan Knowler (Contact Author)

Simon Fraser University (SFU) - School of Resource and Environmental Management ( email )

888 University Drive
Burnaby, British Colombia V5A 1S6
Canada
604-291-3421 (Phone)

Edward B. Barbier

Colorado State University, Fort Collins - Department of Economics ( email )

Fort Collins, CO 80523-1771
United States

Register to save articles to
your library

Register

Paper statistics

Downloads
98
Abstract Views
1,378
rank
270,772
PlumX Metrics