nep-res New Economics Papers
on Resource Economics
Issue of 2008‒06‒07
two papers chosen by
Maximo Rossi
Universidad de la Republica

  1. Rules for the Global Environment By Horst Siebert
  2. A dynamic model of renewable resource harvesting with Bertrand competition By Beard, Rodney

  1. By: Horst Siebert
    Abstract: The paper looks at the global environment as a public good and as a sink for CO2-emissions. It discusses problems to be solved in institutional arrangements to protect global environmental media and looks at criteria for allocating the costs of emission reduction and emission rights. It analyzes institutional mechanisms that stabilize CO2-agreements and reviews the Kyoto Protocol, the perspectives for its successor and EU emission trading. The paper also reviews arrangements for biodiversity and existing multilateral arrangements.
    Keywords: Public good, Global warming, Emission reduction, Emission rights, Institutional Mechanisms, Kyoto Protocol, Post-Bali negotiations, EU emission trading, fauna and flora, existing multilateral arrangements
    JEL: D62 F02 H41 Q20 Q54
    Date: 2008–05
  2. By: Beard, Rodney
    Abstract: In this paper a dierential game model of renewable resource ex- ploitation is considered in which rms compete in exploiting a com- mon resource in a Bertrand price-setting game. The model character- izes a situation in which rms extract a common renewable resource which after harvesting may be considered a dierentiated product. Firms then choose prices rather than harvest quantities. Quantities extracted are determined by consumer demand. Optimal price and harvest policies are determined in a linear state dierential game for whichr open-loop and feedback strategies are known to be equuiva- lent. Furthermore, the case of search costs and capacity constraints is analysed and the role they play in determining the dynamics of the resource stock is considered. The results are compared to those of Cournot competition which has been analysed extensively in the literature. Previous studies of dierential games applied to renewable resource harvesting have concentrated on quantity competition (see for example [12]) and the case of price competition has been largely ignored. the exceptions to this have been in the more empirical litera- ture where evidence for price competition versus quantity competition for renewable resources such as sheries is mounting [1]. Consequently the results presented here are not only new, but possibly of greater empirical relevance than existing results on quantity competition.
    Keywords: linear-state differential game; Bertrand competition; renewable resources; fisheries
    JEL: L13 C02 C61 Q22 D43 Q20 C72
    Date: 2008–05–29

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