© 1998 Oxford University Press and the Foundation for the European Review of Agricultural Economics
research-article |
Dynamic and static approaches to mixed good management: The case of minke whales in the Northeast Atlantic
Department of Development Economics, Wageningen Agricultural University, Hollandseweg 1 6706 KN Wageningen, The Netherlands
Wageningen Agricultural University, The Netherlands
Received July 1, 1997;
Summary
Whales have private and public good characteristics. A dynamic model, developed to capture the complexities of managing such a resource, yields optimal steady-state estimates suggesting that the current stock of minke whales in the Northeast Atlantic is below the steady-state optimum. The dynamics of the optimal approach to the steady state are consistent with drastic measures such as the current moratorium on commercial whaling. These findings are not consistent with previous research in this field. The discrepancies should be attributed to the inclusion of non-use values in the present paper. Finally, we compare the outcomes of the dynamic model with the results of a simple static model. We find that the latter consistently errs on the side of excessive exploitation because of its failure to account for the impact of current harvesting on future benefits and costs
Keywords: preservation benefits, whaling, renewable resource management, efficiency, moratorium, dynamic, static modelling