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A sustainable management of renewable resource with a quota market

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Author Info
L. Doyen () (CERESP CNRS)
J.C. Pereau

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Abstract

This paper deals with the sustainable management of a renewable resource based on individual and transferable quotas (ITQs). The aim of that paper is to determine the conditions under which a regulating agency can achieve both ecological and economic objectives when agents are heterogenous and non-compliant. To achieve this, a controlled dynamic bio-economic model is built with catches derived from a myopic optimization process of every agents. The coordination of agents occurs through the quota market. The performance of the quota policy is evaluated with respect to the satisfaction at each time and for every agents of a constraint of guaranteed harvesting. We show how this constraint induces intergenerational and intragenerational equity along with conservation of the stock. The viability kernel provides the analytical tool to handle such a sustainability problem. Thus indicators of maximal guaranteed catches together with mininal biomass are displayed. Specific total allowable catch (TAC) policies are analyzed, including conservative, greedy, sustainable yield and maximin strategies. Simulations illustrate the general results

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Publisher Info
Paper provided by Society for Computational Economics in its series Computing in Economics and Finance 2006 with number 10.

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Date of creation: 04 Jul 2006
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Handle: RePEc:sce:scecfa:10

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Web page: http://comp-econ.org/
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Related research
Keywords: Viability; bio-economics; renewable resource; quota market;

Find related papers by JEL classification:
Q20 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - General
Q22 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Fishery
Q28 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Government Policy

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This page was last updated on 2009-12-9.


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