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Fixed Costs, Efficient Resource Management, and Conservation

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  • Jinhua Zhao
  • David Zilberman

Abstract

This article develops a framework to analyze the impacts on resource development of efficient management practices that account for possible resource conserving technological changes. Compared with the traditional management practice ignoring these changes, efficient management may not delay or reduce resource development, depending on the level of the changes. Under efficient management, a higher probability of resource conserving technologies may not delay or reduce resource development. These ambiguities are due to the existence of fixed and increasing marginal costs in resource development. Copyright 2001, Oxford University Press.

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  • Jinhua Zhao & David Zilberman, 2001. "Fixed Costs, Efficient Resource Management, and Conservation," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 83(4), pages 942-957.
    • Handle: RePEc:oup:ajagec:v:83:y:2001:i:4:p:942-957
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    File URL: http://hdl.handle.net/10.1111/0002-9092.00221
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    Cited by:

    1. David Zilberman & Leslie Lipper & Nancy McCarthy, 2009. "Putting Payments for Environmental Services in the Context of Economic Development," Natural Resource Management and Policy, in: Leslie Lipper & Takumi Sakuyama & Randy Stringer & David Zilberman (ed.), Payment for Environmental Services in Agricultural Landscapes, chapter 2, pages 9-33, Springer.
    2. Xie, Yang & Zilberman, David, 2014. "The Economics of Water Project Capacities and Conservation Technologies," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 169820, Agricultural and Applied Economics Association.

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