A Note on the Extinction of Renewable Resources
Maureen Cropper
,
1
(
15
)
Journal of Environmental Economics and Management
64-70
March
1988
jc11.pdf408.09 KB
Abstract
This paper presents two sets of conditions under which a sole owner of a renewable resource stock who maximize s a nonlinear benefit function would find it more profitable to harvest the stock to extinction than follow a continuous harvesting strategy. When the minimum viable resource stock is positive, extinction is optimal as long as the initial resource stock is sufficiently small, regardless of the discount rate.