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Increasing marginal returns and the danger of collapse of commercially valuable fish stocks

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  • Maroto, Jose M.
  • Moran, Manuel

Abstract

On the basis of data from the North Sea herring fishery, we discuss the consequences of increasing marginal returns on the exploitation of renewable resources. We show that high, but still reasonable, discount rates can cause extinction to be optimal even in the ideal case of a sole owner and a resource with a high growth rate. In the case of lower discount rates, optimal cyclical policies can periodically drive the resource to levels approaching Safe Minimum Standards. We discuss the sustainability, intergenerational equity, social risk aversion, and theoretical issues raised by increasing marginal returns.

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  • Maroto, Jose M. & Moran, Manuel, 2008. "Increasing marginal returns and the danger of collapse of commercially valuable fish stocks," Ecological Economics, Elsevier, vol. 68(1-2), pages 422-428, December.
    • Handle: RePEc:eee:ecolec:v:68:y:2008:i:1-2:p:422-428
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    2. Reinoud Joosten, 2011. "Social Dilemmas, Time Preferences and Technology Adoption in a Commons Problem," Papers on Economics and Evolution 2011-09, Philipps University Marburg, Department of Geography.
    3. José-María Da-Rocha & Linda Nøstbakken & Marcos Pérez, 2014. "Pulse Fishing and Stock Uncertainty," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 59(2), pages 257-274, October.
    4. Jules Selles, 2018. "Fisheries management: what uncertainties matter?," Working Papers hal-01824238, HAL.
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    7. Spangenberg, Joachim H. & Settele, Josef, 2016. "Value pluralism and economic valuation – defendable if well done," Ecosystem Services, Elsevier, vol. 18(C), pages 100-109.

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