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Optimal management of the growth potential of renewable resources

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Abstract

This paper offers an analysis of the optimal harvesting of a renewable resource when human activity other than harvesting plays a role in the growth process of the resource. The activity we have in mind is not related to pollution or exploration but refers to the ability to influence the growth process directly by means of creating favorable conditions. The analysis gives rise to results which differ substantially from the usual outcomes in the economics of renewable resources. For instance, in the examples under study an increase in the price of the harvested commodity will lead to an increase of the steady state stock of the renewable resource.

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References

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Author notes

  1. David Levhari

    Present address: Department of Economics, The Hebrew University of Jerusalem, Mount Scopus, Jerusalem, Israel

  2. Cees Withagen

    Present address: Department of Mathematics and Computing Science, Eindhoven University of Technology, P.O. Box 513, 5600 MB, Eindhoven, The Netherlands

Authors and Affiliations

    Authors
    1. David Levhari
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    2. Cees Withagen
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    Additional information

    The authors gratefully acknowledge the comments of two anonymous referees. This research was initiated when David Levhari visited CentER at Tilburg University.

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    Levhari, D., Withagen, C. Optimal management of the growth potential of renewable resources. Zeitschrift für Nationalökonomie 56, 297–309 (1992). https://doi.org/10.1007/BF01237184

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    • DOI: https://doi.org/10.1007/BF01237184

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