Economic analysis of optimal ecosystem management in the presence of a threshold has typically ignored the potential for induced behavioral responses. This paper contributes to the literature on non-convex ecosystem management by considering the implications of a particular behavioral response...

We study here optimal management of dynamic ecological systemsthat exhibit a destabilizing positive feedback. The prototypeexample is that of a shallow lake in which phosphorous loadingplaced by anthropogenic activities (fertilizers for farmingand gardening) is stored in sediments until a...