The Sustainable Management of a Productive Natural Capital

Julien Daubanes ()

No 2017/08, IFRO Working Paper from University of Copenhagen, Department of Food and Resource Economics

Abstract: This paper examines an industry whose economic activity uses a natural capital on which its profit also relies. When such a productive natural capital has a limited capacity to recover from its exploitation, a free market tends to over-exploit it, calling for public intervention. The analysis is relevant, among other examples, to the case of naturebased tourism. I study the sustainable management of a productive natural capital: the conditions under which its exploitation generates maximum long-run social benefits; the various ways in which a regulator can implement such an exploitation; the rent that it generates for the industry; the effect of social discounting and operators’ short-termism, etc. Particular attention is given to situations in which the regulator gives more importance to the industry than it does to consumers, as when consumers are foreigners or when the industry generates needed tax revenues. In those contexts, I find that the industry should make more efforts of conservation, rather than less.

Keywords: Renewable natural resources; Over-exploitation; Optimal regulation; Proindustry regulation; Public revenue needs; Optimum taxation; Nature-based tourism (search for similar items in EconPapers)
JEL-codes: H5 L1 Q2 (search for similar items in EconPapers)
Pages: 35 pages
Date: 2017-07
New Economics Papers: this item is included in nep-env and nep-res
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://okonomi.foi.dk/workingpapers/WPpdf/WP2017/IFRO_WP_2017_08.pdf (application/pdf)

Related works:
Working Paper: The Sustainable Management of a Productive Natural Capital (2018)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:foi:wpaper:2017_08

Access Statistics for this paper

More papers in IFRO Working Paper from University of Copenhagen, Department of Food and Resource Economics Contact information at EDIRC.
Bibliographic data for series maintained by Geir Tveit ().