APEC 3611w: Environmental and Natural Resource Economics
  • Course Site
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  1. 6. Natural Resources
  2. 24. Land as a resource
  • Home
  • Syllabus
  • Assignments
    • Assigment 01
    • Assigment 02
    • Weekly Questions 01
    • Weekly Questions 02
    • Weekly Questions 03
    • Weekly Questions 04
    • Weekly Questions 05
  • Midterm Exam
  • Final Exam
  • 1. Global Context
    • 1. Introduction
    • 2. The Doughnut
  • 2. Micro Foundations
    • 3. The Microfilling
    • 4. Supply and Demand
    • 5. Surplus and Welfare in Equilibrium
    • 6. Optimal Pollution
  • 3. Market Failure
    • 7. Market Failure
    • 8. Externalities
    • 9. Commons
  • 4. Macro Goals
    • 10. The Whole Economy
    • 11. Sustainable Development
    • 12. GDP and Discounting
    • 13. Inclusive Wealth
    • 14. Fisheries
  • 5. Climate Change
    • 15. Climate Change
    • 16. Social Cost of Carbon
    • 17. Climate IAMs
    • 18. Air Pollution
    • 19. Water Pollution
  • 6. Natural Resources
    • 20. Non-renewables
    • 21. Will we run out?
    • 22. Fisheries
    • 23. Forestry
    • 24. Land as a resource
    • 25. Land-use change
  • 7. Natural Capital
    • 26. Ecosystem Services
    • 27. Valuing Nature
    • 28. Biodiversity
    • 29. GIS and Carbon
    • 30. Sediment Retention
    • 31. Ecosystem Tradeoffs
  • 8. Future Scenarios
    • 32. Uncertainty
    • 33. Possible Futures
    • 34. Positive Visions
  • 9. Policy Options
    • 35. Policy Analysis
    • 36. Market Policies
    • 37. Real World Policies
  • 10. Earth Economy Modeling
    • 38. Earth Economy Models
    • 39. Gridded Models
    • 40. EE in Practice
  • 11. Conclusion
    • 41. What Next?
  • Games and Apps
  • Appendices
    • Appendix 01
    • Appendix 02
    • Appendix 03
    • Appendix 04
    • Appendix 05
    • Appendix 06
    • Appendix 07
    • Appendix 08
    • Appendix 09
    • Appendix 10
    • Appendix 11
    • Appendix 12

On this page

  • 0.1 Content
  • 1 Transcript
  • 2 Appendix
    • 2.1 Learning objectives
    • 2.2 Land as the hinge of the Earth–economy
    • 2.3 From local fields to global systems
    • 2.4 Why partial analysis fails
    • 2.5 Agriculture as a transformation engine
    • 2.6 Land in Earth–economy models
    • 2.7 A concrete example
    • 2.8 The Doughnut perspective
    • 2.9 Open resources you can remix for this chapter
    • 2.10 Exercises
  1. 6. Natural Resources
  2. 24. Land as a resource

Land Use, Agriculture, and Telecoupling

The forgotten input

0.1 Content

TBD.

1 Transcript

2 Appendix

2.1 Learning objectives

After this chapter, you should be able to:

  • Explain why land use sits at the center of the Earth–economy.
  • Describe how global demand drives local land-use change.
  • Define telecoupling and give concrete examples.
  • Explain why land-use policy cannot be analyzed in isolation.
  • Describe how Earth–economy models link trade, land, ecosystems, and livelihoods.
  • Explain how land systems mediate tradeoffs between food, climate, and biodiversity.

2.2 Land as the hinge of the Earth–economy

Land is where:

  • food is grown,
  • carbon is stored,
  • biodiversity lives,
  • water is regulated,
  • people make their livelihoods.

Almost every major sustainability challenge passes through land:

  • climate (forests and soils),
  • biodiversity (habitat),
  • food security (agriculture),
  • water (infiltration and runoff),
  • development (rural incomes).

You can electrify the economy,
but you cannot dematerialize land.

Land is finite.
Every hectare has competing claims.


2.3 From local fields to global systems

A farmer clearing a field may be responding to:

  • global soy prices,
  • a trade agreement,
  • a new road,
  • a biofuel mandate,
  • or urban demand thousands of kilometers away.

The land decision is local.
The drivers are global.

This is telecoupling:

Distant places become economically and ecologically linked through trade, investment, and policy.

Examples:

  • European meat demand → Brazilian soy expansion → Amazon deforestation
  • Biofuel mandates → corn expansion → wetland loss
  • Urban growth → peri-urban farming displacement → frontier expansion

Cause and effect are separated in space and time.


2.4 Why partial analysis fails

A partial view asks:

  • “What happens if we protect this forest?”

A system view asks:

  • “Where does production move?”
  • “Who loses income?”
  • “What prices change?”
  • “What new land is converted?”

Protection in one place can cause:

  • expansion elsewhere,
  • higher prices,
  • political backlash,
  • or shifts to less regulated regions.

This is leakage.

It does not mean protection is futile.
It means:

Land policy must be evaluated in a connected world.


2.5 Agriculture as a transformation engine

Agriculture converts:

  • ecosystems → food and fiber,
  • water → calories,
  • soil → yield.

It is both:

  • essential for human well-being, and
  • the dominant driver of land conversion.

Policy tensions include:

  • food prices vs habitat,
  • farmer income vs conservation,
  • export revenue vs local ecosystems.

A hectare preserved for nature is:

  • a hectare not producing crops,
  • which can raise prices,
  • which can drive expansion elsewhere.

These are not arguments against protection.
They are arguments for system design.


2.6 Land in Earth–economy models

Earth–economy models represent land as:

  • a spatial resource,
  • allocated among competing uses:
    • crops,
    • pasture,
    • forest,
    • urban,
    • conservation.

They link:

  • global demand,
  • trade flows,
  • prices,
  • land rents,
  • and land conversion.

They also link land cover to:

  • carbon stocks,
  • habitat,
  • water regulation,
  • and ecosystem services.

A policy shock—say, a carbon price—can then:

  1. Change energy costs.
  2. Shift production patterns.
  3. Alter commodity prices.
  4. Reallocate land across regions.
  5. Change deforestation and restoration.
  6. Alter carbon and biodiversity outcomes.
  7. Feed back into economic performance.

This chain cannot be seen in isolation.


2.7 A concrete example

Consider a global carbon policy that:

  • raises fossil fuel prices,
  • encourages biofuels,
  • and rewards forest conservation.

An Earth–economy model may reveal:

  • higher crop prices,
  • expansion of energy crops,
  • pressure on grasslands,
  • increased land rents,
  • migration of farmers,
  • new deforestation fronts,
  • or restoration in some regions.

The policy reduces emissions—but may:

  • increase food insecurity,
  • displace smallholders,
  • or shift biodiversity loss.

The question becomes:

How do we design the package so that land, climate, and livelihoods move together?


2.8 The Doughnut perspective

Land mediates both sides of the Doughnut:

  • Social foundation:
    • food,
    • income,
    • rural livelihoods.
  • Ecological ceiling:
    • habitat,
    • carbon,
    • water systems.

A land pathway that maximizes yields:

  • may reduce hunger,
  • but destroy ecosystems.

A pathway that maximizes protection:

  • may preserve nature,
  • but raise food prices.

The Doughnut asks for:

Land systems that feed people and respect planetary boundaries.

Earth–economy modeling is how we search for them.


2.9 Open resources you can remix for this chapter

All are compatible with a CC BY-NC-SA Quarto book.

  • Natural Resources Sustainability: An Introductory Synthesis (CC BY-NC-SA)
    Use for: land, agriculture, and sustainability framing.
    https://uen.pressbooks.pub/naturalresourcessustainability/

  • Principles of Economics (UMN Libraries Publishing, CC BY-NC-SA)
    Use for: trade, prices, and resource allocation.
    https://open.umn.edu/opentextbooks/textbooks/principles-of-economics

  • InTeGrate teaching materials (many CC BY-NC-SA)
    Use for: land-use change, food systems, and telecoupling activities.
    https://serc.carleton.edu/integrate/teaching_materials/index.html


2.10 Exercises

  1. Telecoupling chain.
    Pick a product you use daily.
    Sketch a chain from consumption to land-use change.

  2. Leakage intuition.
    Explain how protecting one forest could lead to deforestation elsewhere.

  3. System design.
    Propose one policy package that could:

    • reduce deforestation,
    • maintain food affordability,
    • and protect rural livelihoods.