IDEAS home Printed from https://ideas.repec.org/p/hhs/nhhfms/2009_006.html
   My bibliography  Save this paper

Continuous harvesting costs in sole-owner fisheries with increasing marginal returns

Author

Listed:
  • Maroto, Jose M.

    (Department of Estadística e Investigación Operativa II, Universidad Complutense)

  • Moran, Manuel

    (Department of Fundamentos del Análisis Económico I, Universidad Complutense)

  • Sandal, Leif K.

    (Dept. of Finance and Management Science, Norwegian School of Economics and Business Administration)

  • Steinshamn, Stein I.

    (Institute for Reasearch in Economics and Business Administration)

Abstract

We develop a bioeconomic model to analyze a sole-owner fishery with fixed costs as well as a continuous cost function for the generalized Cobb-Douglas production function with increasing marginal returns to effort level. On the basis of data from the North Sea herring fishery, we analyze the consequences of the combined effects of increasing marginal returns and fixed costs. We find that regardless of the magnitude of the fixed costs, cyclical policies can be optimal instead of the optimal steady state equilibrium advocated in much of the existing literature. We also show that the risk of stock collapse increases significantly with increasing fixed costs as this implies higher period cycles which is a quite counterintuitive result as higher costs usually are considered to have a conservative effect on resources.

Suggested Citation

  • Maroto, Jose M. & Moran, Manuel & Sandal, Leif K. & Steinshamn, Stein I., 2009. "Continuous harvesting costs in sole-owner fisheries with increasing marginal returns," Discussion Papers 2009/6, Norwegian School of Economics, Department of Business and Management Science.
    • Handle: RePEc:hhs:nhhfms:2009_006
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/11250/163978
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Erik O. Sterner & Elizabeth J. Z. Robinson & H. J. Albers, 2018. "Location choice for renewable resource extraction with multiple non-cooperative extractors: a spatial Nash equilibrium model and numerical implementation," Letters in Spatial and Resource Sciences, Springer, vol. 11(3), pages 315-331, October.

    More about this item

    Keywords

    Bioeconomic modelling; Stock collapse; Fixed costs; Pulse fishing; Cyclical dynamics; Increasing marginal returns;
    All these keywords.

    JEL classification:

    • Q57 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Ecological Economics

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hhs:nhhfms:2009_006. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Stein Fossen (email available below). General contact details of provider: https://edirc.repec.org/data/dfnhhno.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.