Fiche du document
16 juin 2022
- handle: 10670/1.8qrbss
- hal: hal-03696726
info:eu-repo/semantics/OpenAccess
Mots-clés
Resource Economics Investment under Uncertainty Risk Aversion Prudence Precautionary Savings Q - Agricultural and Natural Resource Economics • Environmental and Ecological Economics/Q.Q2 - Renewable Resources and Conservation D - Microeconomics/D.D8 - Information, Knowledge, and Uncertainty/D.D8.D81 - Criteria for Decision-Making under Risk and UncertaintySujets proches
Loathing Disrelish Disgust Distaste Repugnance Antipathy Abhorrence DislikeCiter ce document
Claudia Kelsall et al., « Risk aversion in renewable resource harvesting », HAL-SHS : économie et finance, ID : 10670/1.8qrbss
Métriques
Partage / Export
Résumé
We study optimal harvesting of a renewable resource with stochastic dynamics. To focus on the effect of risk aversion, we consider a resource user who is indifferent with respect to intertemporal variability. We find that a constant escapement strategy is optimal, i.e. the stock after harvesting is constant. Under common specifications of risk aversion, increasing risk and risk aversion increase current resource use, the reason being a substitution effect, i.e. the resource user substitutes assets away from the risky resource stock. We apply the model to the case of the Eastern Baltic cod fishery and, in contrast to the previous literature, find a strong effect of risk and risk aversion on optimal harvesting.