The economic payoffs from marine reserves: resource rents in a stochastic environment

Date

2005

Authors

Kompas, Tom
Pham, Van Ha
Grafton, Quentin

Journal Title

Journal ISSN

Volume Title

Publisher

Crawford School of Economics and Government, The Australian National University

Abstract

The paper analyses the economic payoffs from marine reserves using a stochastic optimal control model. The results show that even if the reserve and harvested populations face the same negative shocks, harvesting is optimal, the population is persistent and with no uncertainty over current stock size, a reserve can increase resource rents. Using actual fishery data we demonstrate that the payoffs from a reserve, and also optimum reserve size, increase the larger is the magnitude of the negative shock, the greater its frequency, and the larger its relative impact on the harvested population.

Description

Keywords

Citation

Grafton, R.Q., Kompas, T. & Pham, V.H. (2005). The economic payoffs from marine reserves: Resource rents in a stochastic environment. International and Development Economics Paper 05-3. Canberra, ACT: Crawford School of Economics and Government, The Australian National University.

Source

The Economic Record

Type

Working/Technical Paper

Book Title

Entity type

Access Statement

Open Access

License Rights

Restricted until

Downloads