A Discrete Model of Replenishable Resource Management Under Uncertainty

Abstract

This paper examines issues in the management of replenishable resources under uncertainty. The stochastic resource dynamics are given by the discrete-time counterpart of the classic logistic growth model. The use of discrete-time stochastic dynamics allows for a more general characterization of growth uncertainty than is possible with continuous-time models. Given a general specification of the resource management problem, necessary and sufficient conditions for the optimal management policy are derived. Many important properties of the management policy are derived and comparisons are made with the deterministic counterpart policy. An example serves to illustrate many of the results of the analysis.Environmental Economics and Policy, International Development, Resource /Energy Economics and Policy, Risk and Uncertainty,