Frischseminar: Eric Nævdal

This article analyses the effect of productivity improvements on optimal fisheries management. It is shown that when harvest costs are independent of resource stock and the stock is below its steady state level, then for any given stock it is optimal to reduce harvest levels in response to a productivity increase unless optimal harvest rate is already zero. If harvest costs are stock dependent this result is modified; for stock dependent harvest costs there exists an interval of stock sizes below the steady state where it is optimal to reduce the harvest rate for any given stock size whereas if the harvest rate is close to an economically optimal steady state it is optimal to increase the harvest rate.