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

Posted: 9 Mar 2006

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

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, 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?. Review of Development Economics, Vol. 10, No. 1, pp. 103-112, 2006, Available at SSRN: https://ssrn.com/abstract=887402

Amitrajeet A. Batabyal (Contact Author)

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

92 Lomb Memorial Drive
Rochester, NY 14623-5604
United States
585-475-2805 (Phone)
585-475-5777 (Fax)

HOME PAGE: http://people.rit.edu/aabgsh

Hamid Beladi

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

One UTSA Circle
P.O. Box 5636
San Antonio, TX 78249
United States
210-458-7038 (Phone)
210-458-7040 (Fax)

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Abstract Views
557
PlumX Metrics