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Endangered Species and Natural Resource Exploitation: Extinction vs. Coexistence

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  • Tsur, Yacov
  • Zemel, Amos

Abstract

The threat on the survival of animal species due to intensive use of natural resources is incorporated within resource management models, paying special attention to uncertainty regarding the conditions that lead to extinction. The manner in which the potential benefits forgone due to the species extinction (denoted extinction penalty) induce more conservative exploitation policies is studied in detail. When the extinction penalty is ignored, the optimal policy is to drive the resource stock to a particular equilibrium level from any initial state. When the extinction penalty is considered and the conditions that lead to extinction are not fully understood (i.e., involve uncertainty), an interval of equilibrium states is identified, which depends on the penalty and the immediate extinction risk.

Suggested Citation

  • Tsur, Yacov & Zemel, Amos, 1994. "Endangered Species and Natural Resource Exploitation: Extinction vs. Coexistence," Bulletins 7498, University of Minnesota, Economic Development Center.
    • Handle: RePEc:ags:umedbu:7498
    DOI: 10.22004/ag.econ.7498
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    References listed on IDEAS

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    1. Hanemann, W., 1994. "Contingent Valuation and Economics," CUDARE Working Papers 198636, University of California, Berkeley, Department of Agricultural and Resource Economics.
    2. J. Hartwick, 1992. "Deforestation and national accounting," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 2(5), pages 513-521, September.
    3. Tsur Yacov & Zemel Amos, 1995. "Uncertainty and Irreversibility in Groundwater Resource Management," Journal of Environmental Economics and Management, Elsevier, vol. 29(2), pages 149-161, September.
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    5. Fisher, Anthony C. & Michael Hanemann, W. & Keeler, Andrew G., 1991. "Integrating Fishery and water resource management: A biological model of a California salmon fishery," Journal of Environmental Economics and Management, Elsevier, vol. 20(3), pages 234-261, May.
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    Citations

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    Cited by:

    1. Leizarowitz, Arie & Tsur, Yacov, 2012. "Renewable resource management with stochastic recharge and environmental threats," Journal of Economic Dynamics and Control, Elsevier, vol. 36(5), pages 736-753.
    2. Yacov Tsur & Cees Withagen, 2013. "Preparing for catastrophic climate change," Journal of Economics, Springer, vol. 110(3), pages 225-239, November.
    3. Tsur, Yacov & Zemel, Amos, 2006. "Welfare measurement under threats of environmental catastrophes," Journal of Environmental Economics and Management, Elsevier, vol. 52(1), pages 421-429, July.
    4. Matti Liski & Francois Salanie, 2020. "Catastrophes, delays, and learning," Working Papers 2020.20, FAERE - French Association of Environmental and Resource Economists.
    5. Tsur, Yacov & Zemel, Amos, 1996. "Accounting for global warming risks: Resource management under event uncertainty," Journal of Economic Dynamics and Control, Elsevier, vol. 20(6-7), pages 1289-1305.
    6. Tsur, Yacov & Zemel, Amos, 1995. "ON EVENT UNCERTAINTY AND RENEWABLE RESOURCE MANAGEMENT; Proceedings of the 4th Minnesota Padova Conference on Food, Agriculture, and the Environment, September 4-10, 1994, Wayzata, MN," Working Papers 14434, University of Minnesota, Center for International Food and Agricultural Policy.
    7. Michielsen, T.O., 2013. "Environmental Catastrophes Under Time-inconsistent Preferences," Discussion Paper 2013-013, Tilburg University, Center for Economic Research.
    8. Thomas Michielsen, 2013. "Environmental Catastrophes under Time-Inconsistent Preferences," Working Papers 2013.55, Fondazione Eni Enrico Mattei.
    9. Tsur, Yacov & Zemel, Amos, 2002. "Endangered Aquifers: Groundwater Management Under Threats Of Catastrophic Events," Discussion Papers 14993, Hebrew University of Jerusalem, Department of Agricultural Economics and Management.
    10. Michielsen, T.O., 2013. "Environmental Catastrophes Under Time-inconsistent Preferences," Other publications TiSEM 921f1ff7-67c9-45bc-968d-7, Tilburg University, School of Economics and Management.
    11. Tsur, Yacov & Zemel, Amos, 1998. "Pollution control in an uncertain environment," Journal of Economic Dynamics and Control, Elsevier, vol. 22(6), pages 967-975, June.
    12. Yacov Tsur & Amos Zemel, 2017. "Coping with Multiple Catastrophic Threats," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 68(1), pages 175-196, September.
    13. Diekert, Florian K., 2017. "Threatening thresholds? The effect of disastrous regime shifts on the non-cooperative use of environmental goods and services," Journal of Public Economics, Elsevier, vol. 147(C), pages 30-49.
    14. Tsur, Yacov & Zemel, Amos, 2001. "The infinite horizon dynamic optimization problem revisited: A simple method to determine equilibrium states," European Journal of Operational Research, Elsevier, vol. 131(3), pages 482-490, June.
    15. Ranjan Ram, 2011. "Self Insurance and Insurance Demand under Self-Deception," Asia-Pacific Journal of Risk and Insurance, De Gruyter, vol. 5(2), pages 1-27, July.

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