Managing water resources independently may result in substantial economic losses when those resources are interdependent with each other and with other environmental resources. We first develop general principles for using resources with spillovers, including corrective taxes (subsidies) for...

Demand for water will continue to increase as per capita income rises and the population grows, and climate change can exacerbate the problem through changes in precipitation patterns and quantities, evapotranspiration, and land cover—all of which directly or indirectly affect the amount of...

Local and global changes continue to influence interactions between groundwater and terrestrial ecosystems. Changes in precipitation, surface water, and land cover can affect the water balance of a given watershed, and thus affect both the quantity and quality of freshwater entering the ground....

Since its first documented introduction to HawaiÔi in 2005, the rust fungus P. psidii has already severely damaged Syzygium jambos (Indian rose apple) trees and the federally endangered Eugenia koolauensis (nioi). Fortunately, the particular strain has yet to cause serious damage to ÔohiÔa,...

Pollution management based on marginal abatement costs is optimal only if those abatement costs are specified correctly. Using the example of nitrogen pollution in groundwater, we show that the marginal abatement cost function for any given pollution source can be directly derived from a...

Efficient management of groundwater resource systems requires careful consideration of relationships — both positive and negative — with the surrounding environment. The removal of and protection against “bad” and "ugly" natural capital such as invasive plants and feral animals and the...

Economic impacts from invasive species, conveyed as expected damages to assets from invasion and expected costs of successful prevention and/or removal, may vary significantly across spatially differentiated landscapes. We develop a spatial-dynamic model for optimal early detection and rapid...

Biocontrol, the introduction of organisms to control an unwanted species, has been cited as a powerful method to manage the invasive species Miconia calvescens in Hawaii. In addition to ecological advantages, biocontrol is often regarded as less costly than traditional methods despite the large...

We review the economics perspective on sustainable resource use and sustainable development. Under standard conditions, dynamic efficiency leads to sustainability of renewable resources but not the other way around. For the economic‐ecological system as a whole, dynamic efficiency and...

Hawaii is one of 27 states that do not require testing of public high school students regarding their understanding of economics. We report results for the first economics test administered to a large sample of students in Hawaii public high schools during the Spring 2004 semester. Our analysis...