Abstract:
:Free access to a common pool of resource in a country may lead to over-exploitation and sacrifice future opportunities of harvesting. As such, the protection of a common fishery resource is worth investigating. In this paper we develop a two-period model and a multi-period model to analyze the optimal inter-temporal utilization of a finite resource of stock and propose to impose a tax on the harvest rate as an efficient mechanism with an aim at economic sustainability by incorporating the future opportunity of harvesting into the models as a major component of social objectives. The sensitivity analysis of the two-period model shows that (1) labor inputs for harvesting in Period 1 should be reduced, the biomass of fishery stock will increase, but the harvesting in Period 2 should be amplified and the biomass of fishery stock in Period 2 will not be affected if the current generation owns a higher valuation on the future opportunity of harvesting; (2) a higher internal regeneration rate leads to higher harvesting in each period and a higher level of fishery stock in Period 1, but an uncertain level of fishery stock in Period 2; (3) with a higher discount rate the harvesting in Period 1 should increase, but the harvesting in Period 2 should fall and the level of fishery stock in each period will be reduced; (4) a higher fish price in Period 1 leads to higher harvesting in Period 1, but reduced harvesting in Period 2. As a consequence, the level of fishery stock in each period will be reduced; (5) the effect of a change in fish prices in Period 2 on the harvesting and the level of fishery stock in Period 1 is uncertain, but the change in fish prices in Period 2 gives a positive effect on harvesting in Period 2 and a negative effect on the level of fishery stock in Period 2; (6) higher labor wages in Period 1 lead to lower harvesting, but a higher level of fishery stock in Period 1. This encourages an increase in harvesting in Period 2 and leads to a higher level of fishery stock in Period 2; and (7) a change of the labor wage in Period 2 affects the harvesting and the level of fishery stock in Period 1 indecisively, but it gives negative effects on the harvesting in Period 2 and positive effects on the level of fishery stock in Period 2.
journal_name
Math Bioscijournal_title
Mathematical biosciencesauthors
Chen CC,Hsui CYdoi
10.1016/j.mbs.2006.06.007subject
Has Abstractpub_date
2007-05-01 00:00:00pages
138-60issue
1eissn
0025-5564issn
1879-3134pii
S0025-5564(06)00168-4journal_volume
207pub_type
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