Public and private management of renewable resources: Who gains, who loses?

Renewable resources provide society with resource rent and surpluses for resource users (the processing industry, consumers) and owners of production factors (capital and labor employed in resource harvesting). We show that resource users and factor owners may favor inefficiently high harvest rates...

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Bibliographic Details
Main Authors: Quaas, Martin F., Stoeven, Max T.
Format: Report
Language:English
Published: Kiel: Kiel University, Department of Economics 2013
Subjects:
ddc:330
Q28
D33
D72
Q57
resource rent
consumer surplus
worker surplus
distribution
political economy
Arctic
Arctic cod
Northeast Arctic cod
Online Access:http://hdl.handle.net/10419/88417
Description
Summary:Renewable resources provide society with resource rent and surpluses for resource users (the processing industry, consumers) and owners of production factors (capital and labor employed in resource harvesting). We show that resource users and factor owners may favor inefficiently high harvest rates up to open-access levels. This may explain why public resource management is often very inefficient. We further show that privatizing inefficiently managed resources would cause losses for resource users and factor owners, unless (a) the stock is severely depleted and (b) the discount rate is low. We quantify our results for the Northeast Arctic Cod fishery

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