ECON 548 Spring 2011 Lecture15

ECON 548 Spring 2011 Lecture15 - ECON/ENVR 548 Spring2011...

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ECON/ENVR548 Spring 2011 Lecture 15 Jason H Murray
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Reminders Finishing Renewable Resources  Last topic: (next week) International  Environmental Agreements. Midterm 2 on April 6 th   Review in Lecture on April 4 th  
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Harvest Equilibrium Harvest = Growth ‘skimming off the top’  By definition: i.e. 
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So we can write total Costs as a function of the  fish stock (restricting to harvest equilibria) - A decreasing linear function of X
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3 main equilibria or Steady-States  of interest:
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Open-Access (Tragedy of the  Commons) Bio-Economic Equilibrium Growth = Harvest Revenues = Costs Fishing boats enter until average  profit is zero.
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Bio-economic Equilibrium (Open  Access -  Tragedy of the  Commons)
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Optimal static harvest “Single-owner” problem Maximize the distance between TR and  TC (in steady state)
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Optimal Harvest
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Note that: X*   is always to the right of  (bigger than)  X MSY X OA   can be either bigger or  smaller than  X MSY   Market Failure
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Policy Options Property rights (Catch Shares or Individual   Transferable Quota - ITQ) Market based policy instrument Government agency sets Total Allowable 
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This note was uploaded on 06/16/2011 for the course ECON 548 taught by Professor Murray during the Spring '11 term at South Carolina.

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ECON 548 Spring 2011 Lecture15 - ECON/ENVR 548 Spring2011...

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