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Valuing Ecosystem Functions: The Effects of Acidification

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The purpose of the paper is to develop a link between the ecosystem and economy that will allow an economic evaluation of the benefits of ecosystem structure. Researchers of this paper are concerned that the effects of pollution on ecosystems are improperly valued because environmental economics research focuses on the valuation of species directly consumed by humans such as trout, and does not explicitly value species in the food chain such as cadflies, which the trout need to survive. The researchers broaden the traditional approach to ecosystem valuation by including bioenergetics. An ecosystem model is described using the notions of production functions, optimization and equilibria. Then a general equilibrium model is specified by introducing human utility maximizing behavior which interferes with the ecosystem and causes changes in the sources and uses of energy.


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Date Linked: 05/28/2009

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