Optimal Exploitation of Renewable Resources under Uncertainty and the Extinction of Species
Under a minimal set of assumptions, the paper identifies conditions on the transition function of a Markov process leading to the following three scenarios: extinction, conservation, and the existence of a safe standard of conservation. These conditions are used to obtain restrictions on a framework of optimal exploitation of a renewable resource, under which the above three scenarios would occur. The biological growth function is allowed to be non-concave, and is subject to a random environmental shock, thereby making the results suitable for applications in a wide variety of models in renewable resource management.
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- Cropper, M. L., 1988. "A note on the extinction of renewable resources," Journal of Environmental Economics and Management, Elsevier, vol. 15(1), pages 64-70, March.
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- Boylan, Edward S., 1979. "On the avoidance of extinction in one-sector growth models," Journal of Economic Theory, Elsevier, vol. 20(2), pages 276-279, April.
- Olson, Lars J. & Roy, Santanu, 2000. "Dynamic Efficiency of Conservation of Renewable Resources under Uncertainty," Journal of Economic Theory, Elsevier, vol. 95(2), pages 186-214, December.
- Clark, Colin W, 1973. "Profit Maximization and the Extinction of Animal Species," Journal of Political Economy, University of Chicago Press, vol. 81(4), pages 950-961, July-Aug..
- Brock, William A. & Mirman, Leonard J., 1972. "Optimal economic growth and uncertainty: The discounted case," Journal of Economic Theory, Elsevier, vol. 4(3), pages 479-513, June.
- Mukul Majumdar & Tapan Mitra, 1983. "Dynamic Optimization with a Non-Convex Technology: The Case of a Linear Objective Function," Review of Economic Studies, Oxford University Press, vol. 50(1), pages 143-151.
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