Premium
Solving Empirical Bioeconomic Models: A Rangeland Management Application
Author(s) -
Standiford Richard B.,
Howitt Richard E.
Publication year - 1992
Publication title -
american journal of agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.949
H-Index - 111
eISSN - 1467-8276
pISSN - 0002-9092
DOI - 10.2307/1242496
Subject(s) - firewood , rangeland , stocking , production (economics) , agroforestry , bioeconomics , agricultural economics , natural resource economics , economics , geography , environmental science , forestry , microeconomics , biology , archaeology , fishery
An empirical bioeconomic model was developed for private ranches conducting firewood, cattle, and hunting enterprises on California's hardwood rangelands. Hunting, forage, cattle, and oak firewood production functions were derived. Nonlinear optimal control was used to solve for two state and four control variables to give optimal time pathways for oak density and cattle stocking. Risk was considered through use of chance constraints, rainfall variability, and price expectations. Commercial hunting is shown to be the dominant economic value on these rangelands. Inclusion of stochastics shifts production away from cattle to less risky firewood and hunting enterprises.