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

  • Maroto, Jose M.
  • Moran, Manuel
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    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.

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    File URL: http://www.sciencedirect.com/science/article/B6VDY-4SMGCBY-1/2/0a612a43f1659b97a4401a58fd912b84
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    Article provided by Elsevier in its journal Ecological Economics.

    Volume (Year): 68 (2008)
    Issue (Month): 1-2 (December)
    Pages: 422-428

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    Handle: RePEc:eee:ecolec:v:68:y:2008:i:1-2:p:422-428
    Contact details of provider: Web page: http://www.elsevier.com/locate/ecolecon

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    1. Michael Kopel & Herbert Dawid, 1999. "On optimal cycles in dynamic programming models with convex return function," Economic Theory, Springer, vol. 13(2), pages 309-327.
    2. Ikerne del Valle & Inmaculada Astorkiza & Kepa Astorkiza, 2001. "Is the Current Regulation of the VIII Division European Anchovy Optimal?," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 19(1), pages 53-72, May.
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    6. Sumaila, Ussif R. & Walters, Carl, 2005. "Intergenerational discounting: a new intuitive approach," Ecological Economics, Elsevier, vol. 52(2), pages 135-142, January.
    7. Mackinson, S. & Sumaila, U.R. & Pitcher, T.M., 1997. "Bioeconomics and Cacthability: Fish and Fishers Behaviour During Stock Collapse," Norway; Department of Economics, University of Bergen 168, Department of Economics, University of Bergen.
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    16. Trond Bjørndal & Jon M. Conrad & Kjell G. Salvanes, 1993. "Stock Size, Harvesting Costs, and the Potential for Extinction: The Case of Sealing," Land Economics, University of Wisconsin Press, vol. 69(2), pages 156-167.
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