Practice + renewable stocks · Week 07

Allocation practice and fisheries dynamics

Week 6 covered Lecture 5 through page 51. Resume at page 52, Intertemporal Fairness, and finish the lecture before completing Classwork 5. Then move from a fixed resource stock to fisheries, where natural growth changes the allocation problem.

Oct 5–9Lecture 5 → Classwork 5 → FisheriesHomework 2 · Due Oct 9, 9:30 AM

Focus

  • Finish Lecture 5: fairness, saving resource rents, and sustainability
  • Apply allocation through time in Classwork 5
  • Introduce fish stocks, natural growth, harvest, and fishing effort

Prepare

  • Review Lecture 5 through page 51; continue from page 52
  • Bring Classwork 5 and complete Homework 2 for Friday
  • Begin TL Chapter 8 for the fisheries topic

Practice

  • Allocate gravel between two generations
  • Use graphs to predict whether a fish stock rises or falls
  • Distinguish maximum sustainable yield from maximum net benefit

Guiding question

How does natural growth change the allocation problem, and why is the largest sustainable catch not necessarily the best economic outcome?

Learning targets

  • Apply marginal net benefit, present value, and user cost to a fixed stock.
  • Distinguish dynamic efficiency from intertemporal fairness and explain how saving resource rents can support later generations.
  • Distinguish the fish stock from annual growth and harvest flows.
  • Use growth and harvest curves to identify steady states and the direction of stock change.
  • Explain why more fishing effort can eventually reduce sustainable harvest.
  • Compare maximum sustainable yield with the static efficient sustainable yield.

Planned class sequence

  • October 5: resume Lecture 5 at page 52, Intertemporal Fairness, finish the lecture, and begin Classwork 5.
  • October 7: finish Classwork 5 and introduce fish-stock growth and harvest graphs.
  • October 9: submit Homework 2 at 9:30 AM; continue the fisheries graphs and distinguish biological from economic targets.

Lecture slides

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Lecture 5 · Resource Allocation Over TimeBegin at page 52
Lecture 6 · Fishery Dynamics and ManagementView slides

This week’s materials

TL refers to Tietenberg and Lewis, Natural Resource Economics: The Essentials, 2nd edition. Chapter numbers on this page follow that edition, not the larger Environmental and Natural Resource Economics textbook.

For the allocation wrap-up, review TL Chapter 6, Dynamic Efficiency and Sustainable Development, and Chapter 7, Depletable Resource Allocation Over Time: The Role of Longer Time Horizons, Substitutes and Extraction Cost. For Lecture 6, begin TL Chapter 8, Common-Pool Resources: Commercially Valuable Fisheries, focusing on fish stocks, natural growth, harvest, and fishing effort.

Lecture 5Resource Allocation Over Time · Continue from page 52Classwork 5Allocating Gravel Across Two GenerationsLecture 6Fishery Dynamics and ManagementHomework 2Petroleum Wealth Across Generations · Due Oct 9, 9:30 AMReadingResource Allocation Over Time

Coming next

Week 8 continues fisheries policy and graph practice on October 14, followed by the quiz and midterm review on October 16. There is no class on October 12 during Fall Break. The midterm is October 19; environmental valuation begins afterward in Week 9.

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