Renewable and Non-Renewable Resources

Characteristics

Management of open access natural resource

Renewable Resources: Fisheries

Nonstorable

Storable

Normally indivisible and inexhaustible

May be divisible

Renewable Resources

Non-renewable resources

Could become non-rebewable in a biological ___

Water is now non-renewable (due to the difficulty to access potable)

Non-Renewable and depletion path

Carrying capacity

how much stock there can be (without human beings)

Bioeconomic equilibrium

External shock affects the sustainable point

Marginal revenue

harvesting untill Marginal Revenue, marginal costs provide a 'Rent' (=extra profit)

Tragedy of commons

Renewable sources: sustainable managment

Fisheries

Entry Restrictions

Time restrictions

technological restrictions

Market instruments

taxes

tradable quota

Deplition

How to manage the resource from day to day

Efficiency

Although demand has increased, the use of the resource has increased

Mainly due to technology

Usage paradox

Resources are more efficiency therefore cheaper. But this encourages to use the resource even more

Costs

Mainly goes into extracting it

Hotelling rules