Optimal Harvesting of a Spatial Renewable Resource

26 Pages Posted: 14 Dec 2012

See all articles by Stefan Behringer

Stefan Behringer

University of Duisburg-Essen - Mercator School of Management

Thorsten Upmann

Helmholtz Institute for Functional Marine Biodiversity at the University of Oldenburg; Bielefeld University - Department of Business Administration and Economics; CESifo (Center for Economic Studies and Ifo Institute)

Date Written: November 22, 2012

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 accomplishes to visit 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 suitable to limit the exploitative behaviour of the agent.

Keywords: optimal harvesting, spatial renewable resource, continuous time, market failure

JEL Classification: Q20, Q28, D21, C61

Suggested Citation

Behringer, Stefan and Upmann, Thorsten, Optimal Harvesting of a Spatial Renewable Resource (November 22, 2012). CESifo Working Paper Series No. 4019, Available at SSRN: https://ssrn.com/abstract=2188824 or http://dx.doi.org/10.2139/ssrn.2188824

Stefan Behringer

University of Duisburg-Essen - Mercator School of Management ( email )

Lotharstraße 65
Duisburg, Nordrhein-Westfalen 47057
Germany

HOME PAGE: http://www.stefanbehringer.com

Thorsten Upmann (Contact Author)

Helmholtz Institute for Functional Marine Biodiversity at the University of Oldenburg ( email )

Ammerländer Heerstraße 231
Oldenburg, 26129
Germany

Bielefeld University - Department of Business Administration and Economics ( email )

P.O. Box 100131
D-33501 Bielefeld, NRW 33501
Germany

CESifo (Center for Economic Studies and Ifo Institute)

Poschinger Str. 5
Munich, DE-81679
Germany

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