Thursday, November 19, 2020

Lecture D7/E1 (2020-11-19): Economics of Renewable Natural Resources, Part 5 - Fisheries

In this lecture, we continue to discuss the economics of fisheries -- private and open-access. The lecture reminds us of the logistic growth characteristics of fish populations and then presents a bio-economic model relating effort to harvest yield assuming that a fishery has reached steady-state. This bioeconomic fishery model allows us to predict that, for a private fishery, the fishery will never be biologically overfished. However, an open-access fishery may be both economically and biologically overfished. We then discuss how a common property fishery might be economically overfished but will at least be sustainable (i.e., not biologically overfished) in many cases. We end the lecture with a preview of the last lecture of new content for the semester -- a comment on the Pigouvian and Coasean approaches for thinking about environmental economics (and internalizing negative externalities due to environmental damages from production).

Whiteboard notes for this lecture can be found at: https://www.dropbox.com/s/qzabkwhedxk1xvd/LectureD8E1-2020-11-19-Economics_of_Renewable_Natural_Resources-Part_5-Fisheries.pdf?dl=0



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