On the optimal management of a class of aquatic ecological-economic systems

Abstract

This paper studies aquatic ecological-economic systems such as the Chesapeake Bay. The stability of such ecological-economic systems depends on the successful functioning of a small number of generalist species in a wide range of ecological and economic conditions. We first characterize the persistence of such systems. We then analyze the dynamic and the stochastic aspects of the resource allocation problem faced by the manager of an aquatic ecological-economic system. This manager wishes to allocate his scarce financial resources optimally among economic activities and the maintenance of the generalists species of the aquatic ecological-economic system.