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