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Some Further Economics of Easter Island: Adding Subsistence and Resource Conservation

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Author Info
John C. V. Pezzey () (Centre for Resource and Environmental Studies, Australian National University)
John M. Anderies () (Sustainable Ecosystems Division, CSIRO)
Abstract

We extend Brander-Taylor's model of development on Easter Island by adding a resource subsistence requirement to people's preferences, and a conservation incentive in the form of a revenue-neutral, ad valorem tax on resource consumption. Adding subsistence improves plausibility; makes overshoot and collapse of population more extreme, and the steady state less stable; and allows for the possibility that statue building and erection will suddenly stop, in line with the archaeological evidence. We find a tax rate path which almost completely prevents overshoot, and conjecture that the overall strength of this path must rise when the subsistence level rises.

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Paper provided by Australian National University, Centre for Resource and Environmental Studies, Ecological Economics Program in its series Working Papers in Ecological Economics with number 0002.

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Date of creation: Nov 2000
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Handle: RePEc:anu:wpieep:0002

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Web page: http://incres.anu.edu.au/EEP/wp.html

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  1. Steger, Thomas M., 2000. "Economic growth with subsistence consumption," Journal of Development Economics, Elsevier, vol. 62(2), pages 343-361, August. [Downloadable!] (restricted)
  2. John Pezzey, 1992. "Sustainability: an interdisciplinary guide," Environmental Values, White Horse Press, vol. 1(4), pages 321-362, November. [Downloadable!] (restricted)
  3. Koopmans, Tjalling C, 1977. "Concepts of Optimality and Their Uses," American Economic Review, American Economic Association, vol. 67(3), pages 261-74, June. [Downloadable!] (restricted)
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