Economics of renewable resources, Public Economics

Economics of Renewable Resources

Renewable resources are different from exhaustible resources in that the former is regenerated naturally and hence stock need not always decrease whenever harvesting takes place. However, if the harvesting rate far exceeds the natural regeneration rate then it may lead to a situation of stock going below the threshold level so that further regeneration is not possible.

In such instances, further harvesting would lead to extinction of the resources. Examples of renewable resources are

  1. Forest
  2. Marine resource
  3. Water

 

Posted Date: 12/19/2012 12:14:37 AM | Location : United States







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