Article ID: | iaor20023254 |
Country: | United States |
Volume: | 14 |
Issue: | 3 |
Start Page Number: | 419 |
End Page Number: | 432 |
Publication Date: | Sep 2001 |
Journal: | Natural Resource Modeling |
Authors: | Steinshamn Stein I., Sandal Leif K. |
Keywords: | control, economics, geography & environment |
Optimal exploitation of a renewable capital stock is derived as a feedback rule for a general dynamic optimization problem with a single resource. By a feedback rule is meant that optimal exploitation is given as an explicit function of the capital stock. The value of the simplified approach will be appreciated by all who have tried to determine the separatrix solution numerically and experienced problems. The method described here can be applied to fisheries management, animal stock conservation and conservation of the environment in general. The operationality of the method outlined here is illustrated by two simple examples, one related to fisheries management and one related to pollution control.