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Unformatted text preview: for the resource. This prevents the open (1) Establishing This access problem and moves from point A to point B in Figure 1. access (2) Externality control. Including tax on the resource (leading to a transition (2) Externality Including tax from B to C). Gasoline tax in U.S. can from affect Climate change dynamics reduce air pollution reduce Resource taxes also lead to Resource adoption of resource efficient technologies adoption emergence of backstop technologies (recycling when appropriate) emergence backstop (3) Support to Backstop research (3) Support (4) Subsidy for adoption of resource efficient technologies( fuel efficient (4) Subsidy Renewable resources Renewable Growth provides a base for harvest without ultimate Growth depletion. depletion. Change of stock = Growth minus harvest Change minus At a Steady state (sustainable solution) At Growth = Harvest Growth There are many sustainable solutions, the one that There maximizes discounted net benefits is optimal maximizes We have steady state (harvest =growth) at B,M,C,X
B= low stock sustainable outcome C = High stock sustainable outcome M=Maximum Sustainable yield X=maximum Sustainable Stock M G g r o w t h O Resource Stock B Growth as function of stock Growth C X Alternative Sustainable Outcomes Alternative Extinction- no stock on growth X=maximum Sustainable Stock (All food goes for consumption not X=maximum growth) growth) M=Maximum Sustainable yield (Between O and X) B= low stock sustainable outcome (Between O & M) C = High stock sustainable outcome (Between M &X) Maximum Sustainable yie...
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This note was uploaded on 03/18/2010 for the course ECON C125 taught by Professor Zelberman during the Spring '09 term at University of California, Berkeley.
- Spring '09
- Environmental Economics