How Nature And Men Could Better Interact:
On Ecosystem Service Evaluation And Nutrient
Recycling In A Principal-agent-framework
Author(s)
E. A. Nuppenau
Abstract
This paper deals with the economic and ecological aspects of recycling organic
matter to agriculture. It perceives nature as a service provider for such things as
decomposing waste and enrichment of soil nutrients. As a novelty, nature’s
services are supported by human labour, external nutrient influx, and land
assignment. Nature is perceived as seeking fitness and a quasi-objective function
of nature is introduced, whereas humans are seeking services at minimal
payments. 1. The paper starts with nature composed of an accumulating and a
decomposing compartment. 2. Nature’s fitness and human profits are
simultaneously derived in a sequential process of optimal behaviour, i.e. we
model the interaction by applying a principal agent framework whereas nature is
an agent and humans are the principal. 3. As a result, an optimal exchange of
services (recycling) and payments (labour) is endogenously determined. As a
reference, we can consider alternative dumping costs of waste and have to refer
to nutrient prices in agriculture. With respect to testing the economic viability of
recycling, the competitiveness of organic matter recycling is assured against the
dumping of waste. By this we receive the first suggestion of a frontier function
that delineates fitness and welfare.
Keywords: recycling, evaluation of econ system services, principal-agent-model.
1 Introduction
Recycling organic matter, closing nutrient cycles, and improving energy
efficiency is en vogue in agriculture. Generally speaking, to contemplate on
ecological-economic efficiency of food and nutrient systems is popular [1]. In
principle nature offers a double-dividend or cheap service to humans:
Keywords
recycling, evaluation of econ system services, principal-agent-model.
Related Book
Other papers in this volume
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