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Optimal Harvesting of a Spatial Renewable Resource

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  • Stefan Behringer
  • Thorsten Upmann

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Abstract

In this paper we investigate optimal harvesting of a renewable natural resource. While in the standard approach the resource is located at a single point in space we allow for the resource to be distributed over the plane. Consequently, an agent who exploits the resource has to travel from one location to another. For a fixed planning horizon we investigate the speed and the time path of harvesting chosen by the agent. We show that the agent adjusts the speed of movement so that he visits each location only once, even in the absence of travelling cost. Since he does not come back to any location for a second harvest, it is optimal for him to fully deplete the resource upon arrival. A society interested in conserving some of the resource thus has to take measures to limit the exploitative behaviour of the agent.

Suggested Citation

  • Stefan Behringer & Thorsten Upmann, 2013. "Optimal Harvesting of a Spatial Renewable Resource," CEEES Paper Series CE3S-01/13, European University at St. Petersburg, Department of Economics.
  • Handle: RePEc:eus:ce3swp:0113
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    References listed on IDEAS

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    1. James E. Wilen, 2007. "Economics of Spatial-Dynamic Processes," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 89(5), pages 1134-1144.
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    4. Sanchirico, James N. & Wilen, James E., 2005. "Optimal spatial management of renewable resources: matching policy scope to ecosystem scale," Journal of Environmental Economics and Management, Elsevier, vol. 50(1), pages 23-46, July.
    5. Natali Hritonenko & Yuri Yatsenko, 2006. "Optimization of Harvesting Return from Age-Structured Population," Journal of Bioeconomics, Springer, vol. 8(2), pages 167-179, August.
    6. William Brock & Anastasios Xepapadeas & Athanasios Yannacopoulos, "undated". "Robust Control of a Spatially Distributed Commercial Fishery," DEOS Working Papers 1303, Athens University of Economics and Business.
    7. Brock, William & Xepapadeas, Anastasios, 2010. "Pattern formation, spatial externalities and regulation in coupled economic-ecological systems," Journal of Environmental Economics and Management, Elsevier, vol. 59(2), pages 149-164, March.
    8. Smith, Martin D. & Sanchirico, James N. & Wilen, James E., 2009. "The economics of spatial-dynamic processes: Applications to renewable resources," Journal of Environmental Economics and Management, Elsevier, vol. 57(1), pages 104-121, January.
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    14. Costello, Christopher & Polasky, Stephen, 2008. "Optimal harvesting of stochastic spatial resources," Journal of Environmental Economics and Management, Elsevier, vol. 56(1), pages 1-18, July.
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    16. Anthony Scott, 1955. "The Fishery: The Objectives of Sole Ownership," Journal of Political Economy, University of Chicago Press, vol. 63, pages 116-116.
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    Cited by:

    1. Anastasios Xepapadeas & Athanasios Yannacopoulos, 2015. "Spatial Resource Management under Pollution Externalities," CEEES Paper Series CE3S-05/15, European University at St. Petersburg, Department of Economics.
    2. Behringer, Stefan & Upmann, Thorsten, 2017. "Harvesting a Remote Renewable Resource," Annual Conference 2017 (Vienna): Alternative Structures for Money and Banking 168250, Verein für Socialpolitik / German Economic Association.
    3. Khan, M. Ali, 2016. "On a forest as a commodity and on commodification in the discipline of forestry," Forest Policy and Economics, Elsevier, vol. 72(C), pages 7-17.
    4. repec:eee:rensus:v:78:y:2017:i:c:p:1424-1434 is not listed on IDEAS

    More about this item

    Keywords

    Optimal harvesting; spatial renewable resource; continuous time; market failure;

    JEL classification:

    • Q20 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - General
    • Q28 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Government Policy
    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis

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