A Model of Resource Conservation for Rural Subsistence Households

Authors

  • Mario Niklitschek Departamento de Economía, Universidad de Concepción image/svg+xml

Keywords:

resource conservation, rural households, renewable resources, subsistence, income effect, taxation

Abstract

This paper presents a dynamic model of a rural household that is economically dependent on the exploitation of a renewable natural resource. A special feature of the model is that resource utilization decisions are interrelated with consumption and work. It is shown that the existence of an income effect in resource stock and price changes is important to understand household behavior. Resource usage, for example, can decline as a result of a larger resource stock. It is also shown that under binding subsistence constraints taxation of the rural sector not only negatively affects rural household economic welfare, but also environmental resources.

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References

Baumol, W. J., & Oates, W. E. (1988). The theory of environmental policy. Cambridge University Press. https://doi.org/10.1017/cbo9781139173513

Boserup, E. (1965). The conditions of agricultural growth. Aldine.

Boserup, E. (1981). Population and technological change: A study of long term trends. University of Chicago Press.

Chambers, R. G., & López, R. E. (1987). Equity formation and the on-farm, off-farm labor choice. American Journal of Agricultural Economics.

Clark, C. W. (1985). Bioeconomic modelling and fisheries management. John Wiley & Sons.

Dasgupta, P. S., & Heal, G. M. (1979). Economic theory and exhaustible resources. Cambridge University Press. https://doi.org/10.1017/cbo9780511628375

Diewert, W. E. (1974). Applications of duality theory. In M. D. Intriligator & D. A. Kendrick (Eds.), Frontiers of quantitative economics (Vol. 2). North-Holland.

Sen, A. K. (1966). Peasants and dualism with or without surplus labour. Journal of Political Economy, 74(5), 425–450.

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Published

1990-10-31

How to Cite

Niklitschek, M. (1990). A Model of Resource Conservation for Rural Subsistence Households. Economic Analysis Review, 5(2), 69–79. Retrieved from https://www.rae-ear.org/index.php/rae/article/view/261

Issue

Vol. 5 No. 2 (1990)

Section

Articles

License

Copyright (c) 1990 Mario Niklitschek

Creative Commons License

This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.

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