TY - JOUR
T1 - An ecological golden rule
AU - Fishman, Ram
AU - B Krishnamurthy, Chandra Kiran
N1 - Publisher Copyright:
© 2021 Elsevier B.V.
PY - 2021/5
Y1 - 2021/5
N2 - Most renewable biotic resources are subject to random variability in natural growth. We investigate the implications of such variability for long-term management by a risk averse social planner, who maximizes expected long-run utility. In the canonical model of a stochastic fishery, we show that the optimal level of harvesting effort need not necessarily be reduced by variability in stock growth. However, optimal effort is reduced if variability of growth increases for smaller base populations, as suggested in the ecology literature.
AB - Most renewable biotic resources are subject to random variability in natural growth. We investigate the implications of such variability for long-term management by a risk averse social planner, who maximizes expected long-run utility. In the canonical model of a stochastic fishery, we show that the optimal level of harvesting effort need not necessarily be reduced by variability in stock growth. However, optimal effort is reduced if variability of growth increases for smaller base populations, as suggested in the ecology literature.
KW - Golden rule
KW - Natural resource
KW - Q20
KW - Q22
KW - Stochastic growth
UR - http://www.scopus.com/inward/record.url?scp=85100414813&partnerID=8YFLogxK
U2 - 10.1016/j.reseneeco.2021.101219
DO - 10.1016/j.reseneeco.2021.101219
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AN - SCOPUS:85100414813
VL - 64
JO - Resources and Energy Economics
JF - Resources and Energy Economics
SN - 0928-7655
M1 - 101219
ER -
