How to improve the management of renewable resources: The case of Canada's northern cod fishery

R. Quentin Grafton, Leif K. Sandal, Stein Ivar Steinshamn

Research output: Contribution to journalArticlepeer-review

38 Citations (Scopus)

Abstract

The paper examines how an easy-to-apply optimal feedback rule can be used to solve for optimal levels of exploitation of a renewable resource. Using data from Canada's northern cod fishery, the optimal feedback rule is used to derive optimal levels of exploitation for the years 1962-91 under different discount rates, alternative model specifications, and parameter assumptions. The optimal feedback rule indicates that over much of the period the fishery was economically overexploited and, given the stock development that actually took place, a harvesting moratorium should have been instituted three years earlier than when it was introduced. The results show how the use of a simple and flexible optimal rule by managers of renewable resources can generate substantial gains.

Original languageEnglish
Pages (from-to)570-580
Number of pages11
JournalAmerican Journal of Agricultural Economics
Volume82
Issue number3
DOIs
Publication statusPublished - Aug 2000
Externally publishedYes

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