Renewable resource economics

Abstract

Renewable resources play an important role in our economy directly as outputs, such as fish and timber, and indirectly as inputs, such as water and soil. This article introduces three key issues in renewable resource economics and the techniques that economists use to address them. Using examples from fisheries, I outline the theory of sustainable resource use, the problems associated with common property and interjurisdictional sharing. I complete the article with a discussion of two current challenges facing fisheries: the estimated $25–29 billion paid globally in subsidies each year and international sharing that has an adverse effect on stock status.