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Increasing marginal returns and the danger of collapse of commercially valuable fish stocks

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  • Maroto, Jose M.
  • Moran, Manuel

Abstract

On the basis of data from the North Sea herring fishery, we discuss the consequences of increasing marginal returns on the exploitation of renewable resources. We show that high, but still reasonable, discount rates can cause extinction to be optimal even in the ideal case of a sole owner and a resource with a high growth rate. In the case of lower discount rates, optimal cyclical policies can periodically drive the resource to levels approaching Safe Minimum Standards. We discuss the sustainability, intergenerational equity, social risk aversion, and theoretical issues raised by increasing marginal returns.

Suggested Citation

  • Maroto, Jose M. & Moran, Manuel, 2008. "Increasing marginal returns and the danger of collapse of commercially valuable fish stocks," Ecological Economics, Elsevier, vol. 68(1-2), pages 422-428, December.
  • Handle: RePEc:eee:ecolec:v:68:y:2008:i:1-2:p:422-428
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    References listed on IDEAS

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    Cited by:

    1. José-María Da Rocha & María-Jose Gutiérrez & Luis Antelo, 2013. "Selectivity, Pulse Fishing and Endogenous Lifespan in Beverton-Holt Models," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 54(1), pages 139-154, January.
    2. repec:eee:ecomod:v:250:y:2013:i:c:p:72-80 is not listed on IDEAS
    3. José-María Da-Rocha & Linda Nøstbakken & Marcos Pérez, 2014. "Pulse Fishing and Stock Uncertainty," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 59(2), pages 257-274, October.
    4. Reinoud Joosten, 2016. "Strong and Weak Rarity Value: Resource Games with Complex Price–Scarcity Relationships," Dynamic Games and Applications, Springer, vol. 6(1), pages 97-111, March.

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