Optimal Harvesting of a Spatial Renewable Resource

Stefan Behringer and Thorsten Upmann ()

No CE3S-01/13, CEEES Paper Series from European University at St. Petersburg, Department of Economics

Abstract: In this paper we investigate optimal harvesting of a renewable natural resource. While in the standard approach the resource is located at a single point in space we allow for the resource to be distributed over the plane. Consequently, an agent who exploits the resource has to travel from one location to another. For a fixed planning horizon we investigate the speed and the time path of harvesting chosen by the agent. We show that the agent adjusts the speed of movement so that he visits each location only once, even in the absence of travelling cost. Since he does not come back to any location for a second harvest, it is optimal for him to fully deplete the resource upon arrival. A society interested in conserving some of the resource thus has to take measures to limit the exploitative behaviour of the agent.

Keywords: Optimal harvesting; spatial renewable resource; continuous time; market failure (search for similar items in EconPapers)
JEL-codes: C61 D21 Q20 Q28 (search for similar items in EconPapers)
Pages: 29 pages
Date: 2013-10-21
New Economics Papers: this item is included in nep-env and nep-geo
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https://eusp.org/sites/default/files/econpapers/ce3s-01_13.pdf (application/pdf)

Related works:
Journal Article: Optimal harvesting of a spatial renewable resource (2014)
Working Paper: Optimal Harvesting of a Spatial Renewable Resource (2012)
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Persistent link: https://EconPapers.repec.org/RePEc:eus:ce3swp:0113

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