|dc.description.abstract||Renewable resource management is necessary to avoid the dissipation of
inter-temporal rents due to open access exploitation. In reality management is
costly, which implies that the first best solution is not appropriate. Management
costs must be considered explicitly in optimization problems, to find the
appropriate second best solutions. This is the focus of this dissertation, which
contains applied theoretical analyses of dynamic bio-economic models, where
moving away from open access exploitation of a renewable resource is costly.
Partial equilibrium problems of harvesting a scarce renewable resource
are analyzed, where economic incentives of poachers, who are punished if
caught, are included. Harvest, enforcement and resource price are endogenously
determined. The punishment increases poachers' expected marginal costs and the
resource market price, which forces at least some poachers out of the market.
Different relative harvest cost structures are considered between social planner
and poachers, which drives the manner in which the market supply is optimally
shared between them. Corrective policies are given for a pseudo-monopolist
seeking to maximize his discounted profit instead of total economic surplus.
Further policy adjustments are characterized, in case the resource entails nonmarket
A two-good, two-variable-factor bio-economic trade model is also
developed for a small country. Open access, first and second best resource
management models are analyzed, assuming that instantaneous gains are
independent of the resource stock and that resource management incurs a flow of
instantaneous fixed cost. The most empirically realistic model allows for
resource management regime switches, which is influenced by the trade regime
and the world price of the resource good.
Different cases are characterized in relation to changes in welfare and
conservation, following a move from autarky to free trade. Free trade is
unambiguously beneficial in some cases, but not always. Specifically, if open
access is the second best management regime in autarky, then a small
comparative advantage in the resource good could be detrimental to the home
country. There exists a greater comparative advantage in the resource good,
above which free trade would be beneficial. Understanding what drives the
empirically relevant detrimental consequences of free trade can be helpful for