Risk aversion in renewable resource harvesting
نویسندگان
چکیده
We study optimal harvesting of a renewable resource with stochastic dynamics. To focus on the effect risk aversion, we consider user who is indifferent respect to intertemporal variability. In this setting, constant escapement strategy optimal, i.e. stock after constant. find that under common specifications increasing and aversion increase current use. show due an investment effect, invests in free alternatives, rather than risky stock. A quantitative application model for Eastern Baltic cod fishery shows can have much larger found previous literature.
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ژورنال
عنوان ژورنال: Journal of Environmental Economics and Management
سال: 2023
ISSN: ['0095-0696', '1096-0449']
DOI: https://doi.org/10.1016/j.jeem.2023.102855