Article ID Journal Published Year Pages File Type
5062542 Economics Letters 2006 5 Pages PDF
Abstract

In the presence of distributional conflict, one can observe overexploitation for some goods, and underexploitation for others. The present article builds a simple two-period model for the analysis of this issue. It is shown that if the natural resource is renewable, underexploitation is likely, whereas negative future externalities can lead to overuse.

Related Topics
Social Sciences and Humanities Economics, Econometrics and Finance Economics and Econometrics
Authors
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