Some Further Economics of Easter Island: Adding Subsistence and Resource Conservation
John Pezzey () and
John M. Anderies ()
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John M. Anderies: Sustainable Ecosystems Division, CSIRO
Working Papers in Ecological Economics from Australian National University, Centre for Resource and Environmental Studies, Ecological Economics Program
We extend Brander-Taylor's model of development on Easter Island by adding a resource subsistence requirement to people's preferences, and a conservation incentive in the form of a revenue-neutral, ad valorem tax on resource consumption. Adding subsistence improves plausibility; makes overshoot and collapse of population more extreme, and the steady state less stable; and allows for the possibility that statue building and erection will suddenly stop, in line with the archaeological evidence. We find a tax rate path which almost completely prevents overshoot, and conjecture that the overall strength of this path must rise when the subsistence level rises.
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Working Paper: SOME FURTHER ECONOMICS OF EASTER ISLAND: ADDING SUBSISTENCE AND RESOURCE CONSERVATION (2001)
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