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Optimal Exploitation of Renewable Resources under Uncertainty and the Extinction of Species

Author

Listed:
  • Mitra, Tapan

    (Cornell U)

  • Roy, Santanu

    (Southern Methodist U)

Abstract

Under a minimal set of assumptions, the paper identifies conditions on the transition function of a Markov process leading to the following three scenarios: extinction, conservation, and the existence of a safe standard of conservation. These conditions are used to obtain restrictions on a framework of optimal exploitation of a renewable resource, under which the above three scenarios would occur. The biological growth function is allowed to be non-concave, and is subject to a random environmental shock, thereby making the results suitable for applications in a wide variety of models in renewable resource management.

Suggested Citation

  • Mitra, Tapan & Roy, Santanu, 2003. "Optimal Exploitation of Renewable Resources under Uncertainty and the Extinction of Species," Working Papers 03-10, Cornell University, Center for Analytic Economics.
  • Handle: RePEc:ecl:corcae:03-10
    as

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    File URL: https://cae.economics.cornell.edu/MRExtinctionAug2003.pdf
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    References listed on IDEAS

    as
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    More about this item

    JEL classification:

    • D90 - Microeconomics - - Micro-Based Behavioral Economics - - - General
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O41 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models
    • Q32 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Exhaustible Resources and Economic Development

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