How to Improve the Management of Renewable Resources: The Case of Canada's Northern Cod Fishery

Posted: 11 Sep 2000

See all articles by Quentin Grafton

Quentin Grafton

The Australian National University

Leif Kristoffer Sandal

Norwegian School of Economics (NHH) - Department of Business and Management Science

Stein Ivar Steinshamn

Norwegian School of Economics (NHH) - Department of Business and Management Science

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Abstract

The paper examines how an easy-to-apply optimal feedback rule can be used to solve for optimal levels of exploitation of a renewable resource. Using data from Canada's northern cod fishery, the optimal feedback rule is used to derive optimal levels of exploitation for the years 1962-91 under different discount rates, alternative model specifications, and parameter assumptions. The optimal feedback rule indicates that over much of the period the fishery was economically overexploited and, given the stock development that actually took place, a harvesting moratorium should have been instituted three years earlier than when it was introduced. The results show how the use of a simple and flexible optimal rule by managers of renewable resources can generate substantial gains.

JEL Classification: Q22

Suggested Citation

Grafton, Quentin and Sandal, Leif Kristoffer and Steinshamn, Stein Ivar, How to Improve the Management of Renewable Resources: The Case of Canada's Northern Cod Fishery. American Journal of Agricultural Economics, Vol. 82, Issue 3, August 2000. Available at SSRN: https://ssrn.com/abstract=235953

Quentin Grafton (Contact Author)

The Australian National University ( email )

Crawford School (Bldg 132)
The ANU
Acton, Canberra, Australian Capital Territory 2601
Australia

HOME PAGE: http://https://crawford.anu.edu.au/people/academic/quentin-grafton

Leif Kristoffer Sandal

Norwegian School of Economics (NHH) - Department of Business and Management Science ( email )

Helleveien 30
Bergen, NO-5045
Norway
+47 55 95 93 41 (Phone)

Stein Ivar Steinshamn

Norwegian School of Economics (NHH) - Department of Business and Management Science ( email )

Helleveien 30
Bergen, NO-5045
Norway

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