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Comment: The Economics of Interdependent Renewable and Non-renewable Resources revisited

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  • Viktoria Kahui

    ()
    (Department of Economics, University of Otago)

  • Claire W. Armstrong

    ()
    (Norwegian College of Fisheries Science, University of Tromso, Norway)

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    Abstract

    This work expands upon Swallow's theoretical analysis of interactions between renewable and non-renewable resources. In this comment the interaction is such that the renewable resource prefers the non-renewable environment, as opposed to SwallowÕs (op cit) case of the non-renewable environment being essential to the renewable resource. We find that this difference strongly affects the results, and makes the resources change from being complements to being substitutes, i.e. in the essential case profits from active development of the non-renewable resource come at the cost of reducing the optimal stock level for the renewable resource, while a preferred habitat implies the impacts of development can be offset by allowing for a larger renewable stock level.

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    File URL: http://www.business.otago.ac.nz/econ/research/discussionpapers/DP_0904.pdf
    File Function: First version, 2009
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    Bibliographic Info

    Paper provided by University of Otago, Department of Economics in its series Working Papers with number 0904.

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    Length: 16 pages
    Date of creation: May 2009
    Date of revision: May 2009
    Handle: RePEc:otg:wpaper:0904

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    Related research

    Keywords: bioeconomic analysis; interaction renewable non-renewable resource;

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