Bush encroachment control and risk management in semi-arid rangelands
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Bush encroachment control and risk management in semi-arid rangelands. / Lukomska, Natalia; Baumgärtner, Stefan; Quaas, Martin F.
Lüneburg : Institut für Volkswirtschaftslehre der Universität Lüneburg, 2010. (University of Lüneburg Working Papers Series in Economics; No. 191).Research output: Working paper › Working papers
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TY - UNPB
T1 - Bush encroachment control and risk management in semi-arid rangelands
AU - Lukomska, Natalia
AU - Baumgärtner, Stefan
AU - Quaas, Martin F.
PY - 2010/12
Y1 - 2010/12
N2 - 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. © 2014 Elsevier Ltd.
AB - 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. © 2014 Elsevier Ltd.
KW - Sustainability sciences, Management & Economics
KW - bush encroachment
KW - expected utility
KW - farm income
KW - intertemporal optimization
KW - risk aversion
KW - risk management
KW - semi-arid rangeland
KW - Economics
KW - bush encroachment
KW - expected utility
KW - farm income
KW - intertemporal optimization
KW - risk aversion
KW - risk management
KW - semi-arid rangeland
UR - https://www.leuphana.de/fileadmin/user_upload/Forschungseinrichtungen/ifvwl/WorkingPapers/wp_191_Upload.pdf
M3 - Working papers
T3 - University of Lüneburg Working Papers Series in Economics
BT - Bush encroachment control and risk management in semi-arid rangelands
PB - Institut für Volkswirtschaftslehre der Universität Lüneburg
CY - Lüneburg
ER -