Abstract
Preference heterogeneity among landowners managing transboundary resources can determine the production of externalities across their lands. We test this hypothesis in the context of an invasive species affecting two forest landowners where one values their property for recreation and the other produces timber. Using a spatially explicit first-mover repeated game, we find that the social cost of the externality is greatest when a bioinvasion starts on the recreation property. Except for species with fast long-distance dispersal, the optimal subsidy is nonuniform, targeting the landowner who acts as the weaker link, regardless of where a bioinvasion starts. Key words: bioeconomics; ecosystem services; externalities; forest health; invasive plants; spatial-dynamic modeling.
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