Renewable Resource Management in Developing Countries: How Long Until Crisis?

20 Pages Posted: 9 May 2003

See all articles by Amitrajeet A. Batabyal

Amitrajeet A. Batabyal

Rochester Institute of Technology (RIT) - Department of Economics

Hamid Beladi

University of Texas at San Antonio - College of Business - Department of Economics

Multiple version iconThere are 3 versions of this paper

Date Written: 2003

Abstract

A key goal of renewable resource managers in developing countries is to take actions to ensure that the resource being managed stays away from irreversible or crisis states in which it provides neither consumptive nor non-consumptive services to humans. However, despite a manager's best efforts, the resource may still hit a crisis state. Therefore, given a particular management regime, it is useful to know how long it takes until the resource hits a crisis state. In this paper, we provide a theoretical analysis of this hitherto unstudied question. We first probabilistically delineate two management regimes. Next, we compute the expected time until crisis for both these regimes. Finally, we provide a numerical example to illustrate the working of our model and then we discuss the implications of our findings for renewable resource management in developing countries.

Keywords: Crisis, Developing Country, Management, Renewable Resource, Uncertainty

JEL Classification: Q20, O13, D81

Suggested Citation

Batabyal, Amitrajeet A. and Beladi, Hamid, Renewable Resource Management in Developing Countries: How Long Until Crisis? (2003). Available at SSRN: https://ssrn.com/abstract=405881 or http://dx.doi.org/10.2139/ssrn.405881

Amitrajeet A. Batabyal (Contact Author)

Rochester Institute of Technology (RIT) - Department of Economics ( email )

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Hamid Beladi

University of Texas at San Antonio - College of Business - Department of Economics ( email )

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San Antonio, TX 78249
United States
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210-458-7040 (Fax)

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