Submitted by: Submitted by ekaterina1
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Category: Literature
Date Submitted: 11/04/2015 07:26 AM
Introduction
• This chapter examines renewable
resources with biological growth.
• This chapter focuses on common pool
resources (fisheries).
• An economic model is integrated with a
biological model.
• Efficient levels of harvest are defined and
economic incentives for sustainable
harvests are discussed.
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Objectives
• Present the Schaefer model.
• Define static-efficient sustainable yield.
• Discuss the difference between the open-access
and static-efficient outcome.
• Present and discuss dynamic efficiency and the
effect of the discount rate.
• Discuss the two types of externalities created
with free-access.
• Present public policy options for fisheries
management and the pros and cons of each
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option.
Efficient Allocations
Biological Dimension—The Schaefer model
• The Schaefer model posits an average
relationship between the growth of the fish
population and the size of the fish
population.
• The shape of the graph (Figure 14.1)
shows the range of population sizes where
population growth leads to population
increases and a range where population
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growth will lead to stock decreases.
FIGURE 14.1 Relationship between
the Fish Population and Growth
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Static Efficient Sustainable Yield
• The static-efficient sustainable yield is the catch
level that, if maintained perpetually, would
produce the largest annual net benefit.
• Assumptions of the economic model are:
– The price of fish is constant and does not depend on
the amount sold.
– The marginal cost of a unit of fishing effort is constant.
– The amount of fish caught per unit of effort expended
is proportional to the size of the fish population.
• The static-efficient sustainable yield allocation
maximizes the constant net benefit.
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FIGURE 14.2
Efficient Sustainable Yield for a Fishery
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Dynamic Efficient Sustainable Yield
• The dynamic-efficient sustainable yield
incorporates discounting.
– The dynamic...