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NETWORK ECONOMICS OF MARINE ECOSYSTEMS AND THEIR EXPLOITATION Network Economics of Marine Ecosystems and their Exploitation Christian Mullon Institut de Recherche pour le Développement UMR212 Exploited Marine Ecosystems Avenue Jean Monnet, 34200, Sète France (cid:82)(cid:14) (cid:36)(cid:3)(cid:54)(cid:38)(cid:44)(cid:40)(cid:49)(cid:38)(cid:40)(cid:3)(cid:51)(cid:56)(cid:37)(cid:47)(cid:44)(cid:54)(cid:43)(cid:40)(cid:53)(cid:54)(cid:3)(cid:37)(cid:50)(cid:50)(cid:46) CRC Press Taylor & Francis Group 6000 Broken Sound Parkway NW, Suite 300 Boca Raton, FL 33487-2742 © 2014 by Taylor & Francis Group, LLC CRC Press is an imprint of Taylor & Francis Group, an Informa business No claim to original U.S. Government works Version Date: 20131001 International Standard Book Number-13: 978-1-4665-9006-9 (eBook - PDF) This book contains information obtained from authentic and highly regarded sources. Reasonable efforts have been made to publish reliable data and information, but the author and publisher cannot assume responsibility for the validity of all materials or the consequences of their use. The authors and publishers have attempted to trace the copyright holders of all material reproduced in this publication and apologize to copyright holders if permission to publish in this form has not been obtained. If any copyright material has not been acknowledged please write and let us know so we may rectify in any future reprint. Except as permitted under U.S. Copyright Law, no part of this book may be reprinted, reproduced, transmitted, or utilized in any form by any electronic, mechanical, or other means, now known or hereafter invented, including photocopying, microfilming, and recording, or in any information stor- age or retrieval system, without written permission from the publishers. For permission to photocopy or use material electronically from this work, please access www.copy- right.com (http://www.copyright.com/) or contact the Copyright Clearance Center, Inc. (CCC), 222 Rosewood Drive, Danvers, MA 01923, 978-750-8400. CCC is a not-for-profit organization that pro- vides licenses and registration for a variety of users. For organizations that have been granted a pho- tocopy license by the CCC, a separate system of payment has been arranged. Trademark Notice: Product or corporate names may be trademarks or registered trademarks, and are used only for identification and explanation without intent to infringe. Visit the Taylor & Francis Web site at http://www.taylorandfrancis.com and the CRC Press Web site at http://www.crcpress.com Preface Studies about sustainable development imply to jointly consider, at the time horizon of a generation, systems with processes of diverse kinds, relevant to diverse scientific disciplines, at diverse scales (from the small ecosystem to the whole planet). A common way to perform a necessary integration is the coupling of models that have already been formulated and implemented in the different disciplines. In some cases, the intrinsic complexity of the models to couple, some theoretical incoherencies between them, or the number of parameters to jointly estimate make it a difficult way. Here I propose an alternative way, less ambitious. Having looked for common features in ecological and economic processes that are involved in the exploitation of marine ecosystems, I suggest a common model to represent them and I analyze its effective implementation in several case studies. The approach I propose is based on: (1) a focus on equilibration processes in ecological and economic processes, on their interplay, the identification of possible synergies, (2) the formalism of networks and therefore the emphasis on structural constraints, rather than on deterministic relationships, (3) the use of several tools from the modern mathematical theory of optimization, mainly the variational inequality and complementarity problems. The origin of the questions I address in this book lies in the many scientific projects of IRD I have been involved in. IRD is a French research institute for developing countries. Almost all of its programs involve several scientific disciplines (oceanography, fisheries biology, economics, sociology, etc...), a high diversity of approaches, of scales, of processes to represent. All of them imply to bring together a dedicated team of scientists, from developing and developed countries, to realize field studies and surveys. In these programs, the use of models is often crucial and may be problematic. For some scientists they are a tool, for others they are a goal. When they vvii NNeettwwoorrkk EEccoonnoommiiccss ooff MMaarriinnee EEccoossyysstteemmss aanndd tthheeiirr EExxppllooiittaattiioonn are seen as a tool, they can be an integration tool (between searchers) or a communication tool (from searchers to other stakeholders). There are specific models in all disciplines; a common feature is often the use of mathematics and it happens that the construction of an integrated model is attributed to a mathematician. This is the end of a story of this kind I try to tell here. This book is organized into four parts. Part I introduces the issues. Chapter 1 briefly discusses the question of marine ecosystems subject to double exposure. Chapter 2 provides a short introduction to network theories. It pays particular attention to: (a) the diversity of formalisms, terms, and applications, (b) the relationship between structure and function, and (c) the arbitrariness of graphical representations. The network concept is useful because it can be applied equally to mathematics, physics, material sciences, biology, social science, and traffic studies. We briefly discuss this point and give some illustrative examples of network uses in various research fields, with an emphasis on those that are most relevant to network economics. Chapter 3 discusses the equilibrium versus dynamics issue with network economics principles. It aims to place some of the principles of network economics in the context of theoretical debates in economics and ecology. Part II presents the mathematical tools that form the background to the network economics approach. Although the approach is elementary and illustrative the presentation is mathematical, i.e., with definitions, propositions, and demonstrations. Chapter 4 introduces principles and notations. Chapter 5 is an introduction to convex optimization, ending with the Karush-Kuhn-Tucker theorem. Chapter 6 is dedicated to the main ideas of network economics, namely variational inequality and complementarity. The final section of this chapter describes a practical tool that links modeling and simulations based on real data. In an ending digression, we discuss the issue of equilibrium in ecology and economics in more detail. Part III presents the way to apply network economics to ecological and economic systems. Chapter 7 is dedicated to the equilibrium of trophic systems. Chapter 8 is dedicated to economic networks: spatial economics, supply chains; an annex relates it to the general equilibrium theory. Chapter 9 introduces to the formulation of migrations problems. Part IV consists of several studies that illustrate the application of network economics principles and tools to ecological and economic problems. They show the kind of results that can be obtained, highlight changes in perspective, and the scenarios that can be modeled and analyzed. Some studies are purely speculative and involve abstract models; others are based on the simulation of complex real-world systems. Chapter 10 insists on the necessity of a specific way to present complex modelling experiments. In Chapter 11 network economics are used to throw a new light on Gause’s exclusion principle and underline the importance of intra-specific competition as a factor in biological diversity. PCroenfatecnet s vviiii Chapter 12 applies the network economics approach to Humboldt’s productivity paradox and suggests that a focus on the accessibility of primary production is a main factor in fish abundance. Chapter 13 shows how the equilibrium found in a network model of the Chilean coastal ecosystem is related to ecological controls and the identification of key species in an upwelling ecosystem. The research described in chapters 11, 12 and 13 was carried out in collaboration with Yunne Shine and Philippe Cury. Chapter 14 presents a model of the global tuna supply chain. Unlike the models described in previous chapters this is a dynamic model, based on the coupling of economic equilibrium and deterministic functions for fish stock production and fisheries investment. This work was carried out in collaboration with Jeanne Fortilus. Chapter 15 presents a model of the worldwide fish supply chain, including data collection, model calibration, and scenario analysis. It demonstrates the combined effects of climate change and economic globalization on the network equilibrium of this system. This chapter summarizes ongoing work with Gorka Merino and Fabien Steinmetz. Chapter 16 discusses how complementarity may help to reassess how fisheries are financed. Chapter 17 presents a simple model, using a variational inequality approach to migration, of the movements of small and big fish in a water column (an example of a pursuit evasion game). This work was carried out with Anna Nagurney. Chapter 18 analyzes the spatial behavior of Atlantic Bluefin tuna. It seeks to explain changes in migration patterns as a trade-off between the availability of food in feeding areas and the energetic cost of migration. This chapter is a summary of ongoing work with Patrizio Mariani and Vlastimil Krivan. This work is part of the program of the Exploited Marine Ecosystems research unit led by Philippe Cury. I sincerely thank him for giving me availability and guidance all along the writing and the publishing of this work. I have benefited from discussions with my colleagues in this research unit: Frédéric Ménard, Jean-Marc Fromentin, Nicolas Bez, Patrice Guillotreau, Christian Chaboud, and even Olivier Maury. I especially thank my accomplice Pierre Fréon who has heavily contributed to this research for several years: commenting, inspiring, encouraging. This work has been supported by the EUROCEANS consortium through the organization of two summer schools in 2006 (Dragerup-Denmark) and 2009 (Sète, France). I thank Pierre-François Baisnée and the courageous attendants of the presentations I gave at these occasions The works dedicated to a model of the worldwide fish supply chain and to the migrations of the Bluefin tuna, have been supported by the European program BASIN led by Mike Saint-John and Manuel Barange. The part of this work dedicated to a model of the global tuna supply chain has been supported by the program MACROES led by Olivier vviiiiii NNeettwwoorrkk EEccoonnoommiiccss ooff MMaarriinnee EEccoossyysstteemmss aanndd tthheeiirr EExxppllooiittaattiioonn Aumont and funded by the ANR. Jeanne Fortilus was supported by the program AMPED led by David Kaplan and funded by ANR. The origin of the idea of applying network economics to ecological problems has been the reading of Anna Nagurney’s book: Network Economics, a Variational Inequality approach. I have found there the level of abstraction, the level of complexity, the mathematical tools I was seeking for several years to model real marine systems. I acknowledge this influence and I thank her for the collaboration we have initiated since. As a modeler of complicated systems, I have known a period before Volker Grimm and Steve Railsback and a period after them. And I know how much the methodological principles they suggest have positively changed the modeling practice in ecology. Volker has always been reactive to my questions and his outspoken comments about a preliminary version have been very useful. I thank Ferenc Jordan and Charles Mullon for reading a previous version, comments and suggestions. Jeanne Fortilus, Micharl Mansoor, Fabien Steinmetz, Gorka Merino, Jose Fernandez, Patrizio Mariani have been involved in the different case studies that are presented in this book. I thank them for their important contribution. I have benefitted, in the interdisciplinary works I have been associated to inside IRD, from the enthusiasm and the wisdom of Philippe Couty, Joël Bonnemaison, Gaston Pichon, Jacques Weber, Francois Bousquet, Larry Hutchings, Marcel Kuper, Yveline Poncet, Pierre Morand, John Field, Carolina Parada, Sergio Neira, Lynne Shannon, Claude Roy, Christophe Lett, Olivier Thébaud, Benjamin Planque. I am grateful to Jean-Pierre Treuil and Pascal Renaud for our collaboration in a previous life. I thank my colleagues of the international research unit Resiliences, Jean Luc Dubois, Mama Ouattara, Allioune Kane, Awa Niang, Marie-Hélène Durand, Catherine Pasquier, Pierre Morand, Isabelle Droy, Marie Piron, Jacques Quensière for hospitality and stimulating debates. I thank Elaine Seery for reviewing the English of the manuscript. This book is dedicated to my wife Dominique, to my children Charles, Rachel, Justine and to my parents, Jane and André. Christian Mullon Avenue Jean Monnet, 34200, Sète France Contents Part I INTRODUCTION 1. Double Exposure and Network Economics .............................................3 1.1 Double Exposure, 3 1.2 Network Economics, 4 1.3 Marine Systems, 8 1.4 Global Governance and Modelling, 10 1.5 Interdisciplinarity, 11 2. An Illustrated Introduction to Networks ...............................................13 2.1 Network Economics and Other Network Theories, 13 2.2 Common Definitions Concerning Networks, 14 2.3 Systems Relevant of Network Economics, 18 2.4 Systems Not Relevant of Network Economics, 27 2.5 About the Diagrammatic Representation of Networks, 34 3. Network Economics, Statics and Dynamics ..........................................37 3.1 Statics and Dynamics of Networks, 37 3.2 Statics and Dynamics of Marine Systems Under the Double Exposure, 39 3.3 Digression: Statics and Dynamics in Ecology and Economics , 40 Part II A GENTLE INTRODUCTION TO THE MATHEMATICS OF EQUILIBRIUM AND OPTIMIZATION 4. Introduction ................................................................................................51 4.1 Warning, 51 4.2 Complementarity, 52 4.3 Notations, 53

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