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Approximating optimal numerical solutions to bio-economic systems: How useful is simulation-optimization? AgEcon
Börner, Jan; Higgins, Steven Ian; Scheiter, Simon; Kantelhardt, Jochen.
For applications in agricultural economics, complex ecological systems are often oversimplified to the extent that ecologists rarely consider model results valid. Recursive optimization of complex systems represents an alternative, but requires strong assumptions regarding time preference and uncertainty. In this paper we explore the implications of merely approximating “true” optima of complex dynamic optimization problems using a technique called simulation-optimization. We develop a standard discrete renewable resource use problem and solve it numerically using both simulation-optimization and non-linear mathematical programming. We subsequently introduce non-linearity and uncertainty and graphically compare the performance of simulation-optimization...
Tipo: Conference Paper or Presentation Palavras-chave: Optimal control; Simulation; Ecological economic systems; Interdisciplinary modeling; Environmental Economics and Policy; Research Methods/ Statistical Methods.
Ano: 2009 URL: http://purl.umn.edu/51407
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Rainfall or Price Variability: What Determines Rangeland Management Decisions? A Simulation-Optimization Approach to South African Savannas AgEcon
Börner, Jan; Higgins, Steven Ian; Kantelhardt, Jochen; Scheiter, Simon.
Savannas cover the greater part of Africa and Australia and almost half of South America and contribute to the livelihoods of more than 350 million people. With the intensification of land use during the second half of the 20th century, savannas have become increasingly degraded through bush encroachment as a consequence of increased grazing pressure. Research on rangeland dynamics, however, provides contradicting answers with regard to the causes and possible remedies of bush encroachment. In this paper we present results from an application of a simulation-optimization model to the case of extensive rangeland management in South Africa. Our model differs from previous approaches in that it explicitly accounts for the influence of stochastic prices and...
Tipo: Conference Paper or Presentation Palavras-chave: Equilibrium; Bio-economic modeling; Grassland management; Sustainable strategies; Stochastic conditions; Livestock Production/Industries; Q57.
Ano: 2006 URL: http://purl.umn.edu/25435
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