Spatial Dynamics of Optimal Management in Bioeconomic Systems

We develop a computationally efficient methodology to evaluate optimal management in a spatially and temporally dynamic bioeconomic system. The method involves standard techniques from the macroeconomics literature to calculate approximately optimal linear decision rules. Iterations between the decision rules and the nonlinear biological system produce optimal transition paths over space and time. We then apply the methodology to forest management over a $$6\times 6$$6×6 spatial grid where a pest insect (mountain pine beetles) preys on trees that provide a wide array of ecosystem services. The method is sufficiently general to be applicable to a wide range of spatially and temporally dynamic economic systems.

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