OPTIMAL MANAGEMENT OF THE GROWTH-POTENTIAL OF RENEWABLE RESOURCES

This paper offers an analysis of the optimal harvesting of a renewable resource when human activity other than harvesting plays a role in the growth process of the resource. The activity we have in mind is not related to pollution or exploration but refers to the ability to influence the growth process directly by means of creating favorable conditions. The analysis gives rise to results which differ substantially from the usual outcomes in the economics of renewable resources. For instance, in the examples under study an increase in the price of the harvested commodity will lead to an increase of the steady state stock of the renewable resource.