Kelsall, Claudia; Quaas, Martin F.; QUEROU, Nicolas - 2022
We study optimal harvesting of a renewable resource with stochastic dynamics. To focus on the effect of risk aversion … escapement strategy is optimal, i.e. the stock after harvesting is constant. Under common specifications of risk aversion …, increas ing risk and risk aversion increase current resource use, the reason being a substitution effect, i.e. the resource …