Stochastic Rangeland Use Under Capital Constraints

The stocking density on Kazakhstan's extensive rangelands is well below traditional levels. To analyze dynamic flock performance, we develop a stochastic dynamic programming model for livestock systems with stochastic forage production. The model contains continuous five state and 12 control variables, allowing improved characterization of the biophysical relationships and economic tradeoffs inherent in such systems. Most Kazakhstan herders have restricted access to capital. The model indicates that the cost of capital strongly affects flock size and productivity. We conclude that capital constraints are important to explaining the current low stocking density. Improving capital markets in rural areas warrants policy attention.

The topics discussed in the Handbook on the Economics of Natural Resources are essential for those looking to understand how best to use and conserve the resources that form the foundation for human well-being. These include nonrenewable resources, mod

This book has the purpose of providing the "state of the arts" concerning bio-economic modelling dealing with agricultural systems. In most cases, the contributions use a methodology combining the use of biophysical and economic models, in all cases, an engineering production function approach is totally or partially applied. This practice is being developed in the last years as a response to concrete policy matters: agricultural policies are increasingly combined with environmental and natural resources policies, and this reality involves the need of an integrated assessment, that current economic models are not able to provide.

Although rangelands are one of the most important ecological-economic systems on our planet, researchers thus far have paid scant attention to the study of range management from a theoretical perspective. As such, this book provides a systematic approach to the theoretical study of range management under uncertainty. In particular, the book demonstrates how the theory of stochastic processes and the techniques of stochastic modelling can be used to construct and analyse theoretical models of jointly determined rangelands and thereby shed light on the task of range management. Because specialised grazing systems involving the rotation of animals between pastures have been a major focus of range managers since the 1950s, this book pays considerable attention to questions that arise when specialised grazing systems such as short duration grazing are used to manage rangelands. Specific issues that are analysed in this book include the optimal number of paddocks in short duration grazing, the steady state distribution of animals in short duration grazing. Also, the effect of potential irreversibilities, the choice between the stocking rate and time, herding in ranch operations, and the role of time in range management, is discussed.

We analyze the temporal control choice problem faced by a manager who uses cell grazing to manage a parcel of rangeland. Specifically, we first delineate the relevant dynamic and stochastic features of a stylized parcel of rangeland. Next, we use a renewal theoretic framework to derive the manager's long run expected net cost (LRENC) of management operations per unit time. Finally, we demonstrate that the optimal temporal control is the solution to the manager's LRENC minimization problem.

A conceptual approach is commonly needed to provide guidance for empirical analyses concerning the use of renewable resources such as rangelands. The theoretical model constructed in this paper captures the essential aspects of dynamic and stochastic issues associated with the management of rangelands. We use our approach to discuss the connections between this paper's model and range policy. In particular, we point out scenarios in which there is limited or no role for policy. This is compared to scenarios when policy has a significant role to play in ensuring the sustainable use of rangelands. Finally, we suggest two ways in which our approach might be extended and used in an empirical application.