When is it optimal to exhaust a resource in a finite time?

Ken Ichi Akao, Y. Hossein Farzin

Research output: Chapter in Book/Report/Conference proceedingChapter

Abstract

Exhaustion of a natural resource stock may be a rational choice for an individual and/or a community, even if a sustainable use for the resource is feasible and the resource users are farsighted and well informed on the ecosystem. We identify conditions under which it is optimal not to sustain resource use. These conditions concern the discounting of future benefits, instability of a social system or ecosystem, nonconvexity of natural growth function, socio-psychological value of employment, and strategic interaction among resource users. The identification of these conditions can help design policies to prevent unsustainable patterns of resource use.

Original languageEnglish
Title of host publicationSustainability and Diversity of Forest Ecosystems
Subtitle of host publicationAn Interdisciplinary Approach
PublisherSpringer Japan
Pages422-430
Number of pages9
ISBN (Print)9784431732372
DOIs
Publication statusPublished - 2007

Keywords

  • Finite-time exhaustion
  • Optimal path
  • Policy implications
  • Renewable resource management
  • Sustainability

ASJC Scopus subject areas

  • Agricultural and Biological Sciences(all)

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  • Cite this

    Akao, K. I., & Farzin, Y. H. (2007). When is it optimal to exhaust a resource in a finite time? In Sustainability and Diversity of Forest Ecosystems: An Interdisciplinary Approach (pp. 422-430). Springer Japan. https://doi.org/10.1007/978-4-431-73238-9_7