Resource exploitation under environmental uncertainty

Yacov Tsur, Amos Zemel

    Research output: Contribution to journalArticlepeer-review

    Abstract

    Optimal resource management is considered, with a special emphasis on the possible occurrence of a catastrophic environmental event, whose occurrence conditions are subject to uncertainty. The events are classified according to the extent to which the damage they inflict is reversible, and th7acterized as exogenous or endogenous. The implications of this classification on the ensuing optimal policies are analysed. The framework presented unifies the analysis of the plethora of events considered, relating their optimal state processes to the particular class to which the corresponding event belongs. We find that endogenous events give rise to equilibrium intervals and always entail more conservation. In contrast, exogenous events entail isolated equilibrium levels, and conservation is ensured only if the event is reversible.

    Original languageEnglish
    Pages (from-to)326-338
    Number of pages13
    JournalInternational Journal of Environment and Pollution
    Volume10
    Issue number2
    DOIs
    StatePublished - 1 Jan 1998

    Keywords

    • Conservation
    • Endogenous/exogenous events
    • Event uncertainty
    • Irreversibility
    • Optimal resource management

    ASJC Scopus subject areas

    • Waste Management and Disposal
    • Pollution
    • Management, Monitoring, Policy and Law

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