EconPapers    
Economics at your fingertips  
 

Optimal exploitation of a renewable resource with capital limitations: Nordic sheep farming with and without grazing externalities

Asle Gauteplass and Anders Skonhoft ()

European Review of Agricultural Economics, 2015, vol. 42, issue 1, 25-50

Abstract: A model of interaction between a renewable natural resource with capital limitations, as exemplified by the optimal investment problem of sheep farming in a Nordic context, is analysed. Both private and social optimality are considered; with the difference that a stock value related to the number of grazing animals is attached to the social management problem due to landscape preservation. The efficiency of alternative policy tools in terms of obtaining the socially optimal management scheme is discussed. The model builds on existing studies from the fisheries literature, but the important difference is that while capital is related to harvesting effort in the fisheries, capital contributes to production capacity to keep the animal stock during the winter in our farm model. The paper provides several results where both optimal steady states and the optimal approach paths are characterised analytically. The results are further supported by a numerical example.

Date: 2015
References: Add references at CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://hdl.handle.net/10.1093/erae/jbu004 (application/pdf)
Access to full text is restricted to subscribers.

Related works:
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:oup:erevae:v:42:y:2015:i:1:p:25-50.

Ordering information: This journal article can be ordered from
http://www.oup.co.uk/journals

Access Statistics for this article

European Review of Agricultural Economics is currently edited by Christoph Weiss, Thomas Heckelei and Paolo Sckokai

More articles in European Review of Agricultural Economics from Foundation for the European Review of Agricultural Economics Oxford University Press, Great Clarendon Street, Oxford OX2 6DP, UK. Contact information at EDIRC.
Bibliographic data for series maintained by Oxford University Press ().

 
Page updated 2020-09-21
Handle: RePEc:oup:erevae:v:42:y:2015:i:1:p:25-50.