Optimal Pricing

of

Biodiverse Renewable Natural Resources

 Abstract
(JEL codes: Q2, D00)

Sustainability of biodiverse renewable natural resources requires a pricing regime that can takes into account intrinsic rates of growth, heterogeneous harvesting rates, and the interdependence of species. Drawing on the theory of renewable natural resource pricing, we develop a discrete model of dynamic optimization of multiple species of renewable natural resources, along with an index of relative biodiversity. Using a sustainable yield framework, we then illustrate how interdependence can be factored within a dynamic optimization model to derive the corresponding shadow prices, and how the corresponding index of relative biodiversity will change over time. In turn, the corresponding shadow prices can be used to determine the value of harvesting permits consistent with species interdependence and sustainable growth.

 Economics and the Environment

1. The bioeconomic context

2. Extinction versus sustainability

3. Measures of sustainability

4. Measures of biodiversity

5. The pricing problem

6. Applications and implications

 

 

 

 Environmental Policies for Sustainable Growth in Africa

 Measuring Sustainable Economic Development

 Extinction and Evolution

 Index of Relative Biodiversity

Technical Change in Logistic Functions

Logit Function Growth Rates

The Framework of Biodiverse Renewable Natural Resource Pricing

Biodiverse Renewable Natural Resource Pricing Scenarios

Optimal Pricing of Biodiverse Natural Resources for Sustainable Economic Growth


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