Land-use and species tipping points in a coupled ecological-economic model

Complex systems can have tipping points where the system behavior changes abruptly from one regime to another. We develop an ecological-economic model that simulates the spatio-temporal dynamics of the land-use induced by a tradable permit market and its consequences on the viability of a model species. The model analysis reveals that the land-use dynamics are subject to a tipping point with regard to changes in policy scheme design. One the level of species viability, this tipping point is amplified and a second tipping point emerges. The two tipping points interact and their location and sharpness depend on the characteristics of the species. We conclude that in the consideration of coupled ecological-economic systems tipping points can play an important role. The existence of tipping points considerably complicates the design of policy instruments for the sustainable management of ecological-economic systems because a small change in the policy design can have dramatic consequences on the system dynamics.