Complementarity, impatience, and the resilience of natural-resource-dependent economies
We study how human preferences a ect the resilience of economies that depend on more than one type of natural resources. In particular, we analyze whether the degree of substitutability of natural resources in consumer needs may give rise to multiple steady states and path dependence even when resources are managed optimally. This is a major shift in the interpretation and analysis of resilience, from viewing (limited) resilience as an objective property of the economy-environment system to acknowledging its partially subjective, preference-based character. We nd that society tends to be less willing to bu er exogenous shocks if resource goods are complements in consumption than if they are substitutes. Hence, the stronger the complementarity between the various types of resource goods, the less resilient the economy is.
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Costanza, Robert, 1995. "Economic growth, carrying capacity, and the environment," Ecological Economics, Elsevier, vol. 15(2), pages 89-90, November.
- Wirl, Franz & Feichtinger, Gustav, 2005. "History dependence in concave economies," Journal of Economic Behavior & Organization, Elsevier, vol. 57(4), pages 390-407, August.
- De Zeeuw, A. & Polasky, S. & Wagener, F.O.O., 2010.
"Optimal Management with Potential Regime Shifts,"
CeNDEF Working Papers
10-10, Universiteit van Amsterdam, Center for Nonlinear Dynamics in Economics and Finance.
- Tahvonen, Olli & Salo, Seppo, 1996. "Nonconvexities in Optimal Pollution Accumulation," Journal of Environmental Economics and Management, Elsevier, vol. 31(2), pages 160-177, September.
- Derissen, Sandra & Quaas, Martin F. & Baumgärtner, Stefan, 2011. "The relationship between resilience and sustainability of ecological-economic systems," Ecological Economics, Elsevier, vol. 70(6), pages 1121-1128, April.
- Clark, Colin W, 1973. "Profit Maximization and the Extinction of Animal Species," Journal of Political Economy, University of Chicago Press, vol. 81(4), pages 950-61, July-Aug..
- M. Scott Taylor, 2009. "Innis Lecture: Environmental crises: past, present, and future," Canadian Journal of Economics, Canadian Economics Association, vol. 42(4), pages 1240-1275, November.
- H. Scott Gordon, 1954. "The Economic Theory of a Common-Property Resource: The Fishery," Journal of Political Economy, University of Chicago Press, vol. 62, pages 124.
- Mäler, K-G. & Xepapadeas, A. & de Zeeuw, A.J., 2003.
"The economics of shallow lakes,"
Other publications TiSEM
368f83ad-bc2f-4ad4-b603-8, Tilburg University, School of Economics and Management.
- Halsema, Alex & Withagen, Cees, 2008. "Managing multiple fishery pools: property rights regimes and market structures," Environment and Development Economics, Cambridge University Press, vol. 13(06), pages 775-794, December.
- Reed, William J., 1979. "Optimal escapement levels in stochastic and deterministic harvesting models," Journal of Environmental Economics and Management, Elsevier, vol. 6(4), pages 350-363, December.
- Gould, J R, 1972. "Extinction of a Fishery by Commercial Exploitation: A Note," Journal of Political Economy, University of Chicago Press, vol. 80(5), pages 1031-38, Sept.-Oct.
- repec:ner:tilbur:urn:nbn:nl:ui:12-123314 is not listed on IDEAS
- Curtis, Fred, 2003. "Eco-localism and sustainability," Ecological Economics, Elsevier, vol. 46(1), pages 83-102, August.
- Berck, Peter, 1979. "Open Access and Extinction," Econometrica, Econometric Society, vol. 47(4), pages 877-82, July.
- Seierstad, Atle & Sydsaeter, Knut, 1977. "Sufficient Conditions in Optimal Control Theory," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 18(2), pages 367-91, June.
- Richard Horan & James Shortle, 1999. "Optimal Management of Multiple Renewable Resource Stocks: An Application to Minke Whales," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 13(4), pages 435-458, June.
- Arrow, Kenneth & Bolin, Bert & Costanza, Robert & Dasgupta, Partha & Folke, Carl & Holling, C. S. & Jansson, Bengt-Owe & Levin, Simon & Maler, Karl-Goran & Perrings, Charles & Pimentel, David, 1995.
"Economic growth, carrying capacity, and the environment,"
Elsevier, vol. 15(2), pages 91-95, November.
- Arrow, Kenneth & Bolin, Bert & Costanza, Robert & Dasgupta, Partha & Folke, Carl & Holling, C.S. & Jansson, Bengt-Owe & Levin, Simon & Mäler, Karl-Göran & Perrings, Charles & Pimentel, David, 1996. "Economic growth, carrying capacity, and the environment," Environment and Development Economics, Cambridge University Press, vol. 1(01), pages 104-110, February.
- Hersoug, Bjørn & Holm, Petter & Rånes, Stein Arne, 2000. "The missing T. Path dependency within an individual vessel quota system -- the case of Norwegian cod fisheries," Marine Policy, Elsevier, vol. 24(4), pages 319-330, July.
- 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.
When requesting a correction, please mention this item's handle: RePEc:lue:wpaper:220. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Joachim Wagner)
If references are entirely missing, you can add them using this form.