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Fishery Management in a Regime Switching Environment: Utility Based Approach

Author

Listed:
  • Gaston Clément Nyassoke Titi

    (Université de Douala)

  • Jules Sadefo-Kamdem

    (MRE - Montpellier Recherche en Economie - UM - Université de Montpellier, UG - Université de Guyane)

  • Louis Aimé Fono

    (Université de Douala)

Abstract

In this paper we study the problem of optimal fishing for regime switching, which may be regarded as sequential optimal problem with changes of regimes. The growth dynamics of a given fish species is described by the differential stochastic logistic model in which we take into account two states: prior or during floods and after. The resulting dynamic programming principle leads to a system of variational inequalities, by means of viscosity solutions approach, we prove the existence and uniqueness of the value functions. Then numerical approximation is used to answer the question: what is the optimal fishing effort for a sustainable fishery?

Suggested Citation

  • Gaston Clément Nyassoke Titi & Jules Sadefo-Kamdem & Louis Aimé Fono, 2020. "Fishery Management in a Regime Switching Environment: Utility Based Approach," Working Papers hal-02433395, HAL.
    • Handle: RePEc:hal:wpaper:hal-02433395
    Note: View the original document on HAL open archive server: https://hal.umontpellier.fr/hal-02433395
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    References listed on IDEAS

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    1. Arantza Murillas & José Manuel Chamorro, 2006. "Valuation and Management of Fishing Resources Under Price Uncertainty," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 33(1), pages 39-71, January.
    2. Nostbakken, Linda, 2006. "Regime switching in a fishery with stochastic stock and price," Journal of Environmental Economics and Management, Elsevier, vol. 51(2), pages 231-241, March.
    3. Johan A. Mistiaen & Ivar E. Strand, 2000. "Location Choice of Commercial Fishermen with Heterogeneous Risk Preferences," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 82(5), pages 1184-1190.
    4. Insley, Margaret, 2002. "A Real Options Approach to the Valuation of a Forestry Investment," Journal of Environmental Economics and Management, Elsevier, vol. 44(3), pages 471-492, November.
    5. Bockstael, Nancy E. & Opaluch, James J., 1983. "Discrete modelling of supply response under uncertainty: The case of the fishery," Journal of Environmental Economics and Management, Elsevier, vol. 10(2), pages 125-137, June.
    6. Dupont, D.P., 1993. "Price Uncertainty,Expectations Formation and Fishers' Allocation Choice," Working Papers 1993-1, Brock University, Department of Economics.
    7. Sturla Kvamsdal & Diwakar Poudel & Leif Sandal, 2016. "Harvesting in a Fishery with Stochastic Growth and a Mean-Reverting Price," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 63(3), pages 643-663, March.
    8. Sarkar, Sudipto, 2009. "Optimal fishery harvesting rules under uncertainty," Resource and Energy Economics, Elsevier, vol. 31(4), pages 272-286, November.
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    Cited by:

    1. Gaston Clément Nyassoke Titi & Jules Sadefo Kamdem & Louis Aimé Fono, 2022. "Optimal renewable resource harvesting model using price and biomass stochastic variations: a utility based approach," Mathematical Methods of Operations Research, Springer;Gesellschaft für Operations Research (GOR);Nederlands Genootschap voor Besliskunde (NGB), vol. 95(2), pages 297-326, April.
    2. Gaston Clément Nyassoke Titi & Jules Sadefo-Kamdem & Louis Aimé Fono, 2021. "Optimal Renewable Resource Harvesting model using price and biomass stochastic variations: A Utility Based Approach," Working Papers hal-03169348, HAL.

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    More about this item

    Keywords

    regime switching; floods; crra utility; logistic growth; mean-reverting prices; viscosity solution; Howard's algorithm;
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