Harvesting versus Biodiversity: An Occam's Razor Version
- 66 Downloads
The point of departure for this paper is the familiar prototype fisheriesmodel where a fictitious sole owner harvests a fish population to maximizepresent discounted profits. The paper answers analytically the followingquestion. ``What happens to a policy when the sole owner also valuesbiodiversity, as well as profits?'' It turns out that the size of the steady-state stock and the number of species preserved are both higher, whenspecies diversity is positively valued. This paper provides a sharpcharacterization of the optimal policy in terms of the usual economicparameters and an exogenously introduced willingness-to-pay function forspecies preservation.
Unable to display preview. Download preview PDF.
- Clark, C. W. (1990), Mathematical Bioeconomics: The Optimal Management of Renewable Resources (2nd edition). New York: John Wiley & Sons.Google Scholar
- Cropper, M. (1976), ‘Regulating Activities with Catastrohic Effects’, Journal of Environmental Economics and Management 3, 1–15.Google Scholar
- Holling, C. S., D. W. Schindler, B. W. Walker and J. Roughgarden (1995), ‘Biodiversity in the Functioning of Ecosystems: An Ecological Synthesis’, in C. Perrings, ed., Biodiversity Loss — Economic and Ecological Issues. Cambridge: Cambridge University Press.Google Scholar
- Li, C. Z. and K. G. Löfgren (1998), ‘A Dynamic Model of Biodiversity Preservation: Theory and Applications’, Environment and Development Economics 3, 157–172.Google Scholar
- Spence, M. and D. Starrett (1975), ‘Most Rapid Approach Paths in Accumulation Problems’, International Economic Review 16, 388–403.Google Scholar