Resource Economics

Contents......Page 6
Preface......Page 10
1.0 Renewable, Nonrenewable, and Environmental Resources......Page 12
1.1 Discounting......Page 15
1.2 A Discrete-Time Extension of the Method of Lagrange Multipliers......Page 20
1.3 Questions and Exercises......Page 27
2.0 Introduction and Overview......Page 30
2.1 An Optimal Depletion Problem......Page 34
2.2 An Optimal Harvest Problem......Page 38
2.3 Questions and Exercises......Page 42
3.1 Net Growth......Page 43
3.2 Fishery Production Functions......Page 46
3.3 The Yield–Effort Function......Page 47
3.4 The Static Model of Open Access......Page 48
3.5 The Dynamic Model of Open Access......Page 50
3.6 Static Rent Maximization by a Sole Owner......Page 52
3.7 Present Value Maximization......Page 55
3.8 Traditional Management Policies......Page 60
3.9 Bioeconomic Management Policies......Page 63
3.10 ITQ Programs in New Zealand, Australia, and Canada......Page 65
3.11 Questions and Exercises......Page 68
4.0 Introduction and Overview......Page 70
4.1 The Volume Function and Mean Annual Increment......Page 71
4.2 The Optimal Single Rotation......Page 73
4.3 The Faustmann Rotation......Page 74
4.4 An Example......Page 76
4.5 Timber Supply......Page 79
4.6 The Optimal Stock of Old-Growth Forest......Page 81
4.7 Questions and Exercises......Page 86
5.0 Introduction and Overview......Page 88
5.1 A Simple Model......Page 89
5.2 Hotelling’s Rule......Page 90
5.3 The Inverse Demand Curve......Page 91
5.4 Extraction and Price Paths in the Competitive Industry......Page 93
5.5 Extraction and Price Paths under Monopoly......Page 97
5.6 Reserve-Dependent Costs......Page 99
5.7 Exploration......Page 102
5.8 The Economic Measure of Scarcity......Page 107
5.9 Questions and Exercises......Page 109
6.0 Introduction and Overview......Page 112
6.1 The Commodity-Residual Transformation Frontier......Page 113
6.2 Damage Functions and Welfare......Page 115
6.3 A Degradable Stock Pollutant......Page 118
6.4 Diffusion and a Nondegradable Stock Pollutant......Page 124
6.5 Optimal Extraction with a Nondegradable Waste......Page 130
6.6 Recycling......Page 135
6.7 Emission Taxes and Marketable Pollution Permits......Page 138
6.8 Questions and Exercises......Page 145
7.0 Introduction and Overview......Page 152
7.1 Cost–Benefit Analysis......Page 153
7.2 Option Value in a Simple Two-Period Model......Page 159
7.3 Option Value: An Infinite-Horizon Model......Page 161
7.4 The Trigger Values for Irreversible Decisions......Page 165
7.5 Questions and Exercises......Page 175
8.0 Introduction and Overview......Page 177
8.1 Sustainable Development as a Steady State......Page 178
8.2 Intergenerational Altruism and the Stock of a Renewable Resource......Page 179
8.3 Coevolution......Page 184
8.4 Adaptive Development......Page 193
8.5 A Requiem for Sustainable Development?......Page 196
8.6 Questions and Exercises......Page 198
B.0 Texts......Page 200
B.1 Basic Concepts......Page 201
B.2 Solving Numerical Allocation Problems......Page 202
B.3 The Economics of Fisheries......Page 204
B.4 The Economics of Forestry......Page 206
B.5 The Economics of Nonrenewable Resources......Page 208
B.6 Stock Pollutants......Page 213
B.7 Option Value and Risky Development......Page 215
B.8 Sustainable Development......Page 217
Index......Page 220