This means that you cant fish down a stock to a

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Unformatted text preview: you can't fish down a stock to a certain level of "no return". Mart Brisson, 2014-02-28 Value ($) Natural capital Human-produced capital The economics of overexploitation Natural capital Human-produced capital Value ($) BIO 3115 Conservation Biology Time Natural capital Natural capital can be converted to human-produced capital. If the rate of return on humanproduced capital is greater than the rate of return on natural capital, it makes (short-term) economic sense to convert the latter to the former. Human-produced capital M7.19 BIO 3115 Université d’Ottawa / University of Ottawa 2012 Total profit maximized at E1, but individuals can still make a profit up to E2 Therefore, individual decisions will tend to increase effort towards E2, beyond that which results in maximum profits for the group as a whole... …and as effort increases, so does the harvest. Hence, overexploitation risk increases. Revenues and costs Overexploitation risk in common property harvesting: the commons revisited Total revenues Total costs E2 E1 Effort M7.20 BIO 3115 Université d’O...
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