Essays in resource economics
This thesis consists of three essays in resource economics. Chapter 2 analyzes the effects of resource storage on welfare and on the resource stock, in the context of rice-fish culture. I develop a simple general equilibrium model, that has three central components: one open access renewable resource with logistic natural growth, two production sectors and storage of the good produced with the resource. Consumers store the resource when they speculate that the price of the resource will be higher in the future. Storage has an ambiguous effect on welfare, has a negative impact on resource stock at the period the storage takes place and has a positive impact for all following periods. Chapter 3 examines the effects of migration of skilled workers in a model of interregional trade in the presence of pollution. I develop a two-sector model of trade that incorporates both pollution and migration issues to show that interregional trade can affect the pollution level of a country composed of regions with different industrial structures. The mobility of workers amplifies the effects of interregional trade on the environmental capital. The region with the less (more) polluting technology is affected positively (negatively) by trade. Migration doesn’t affect the trade pattern. The region with the less polluting manufacturing industry always gains from trade. If the preferences over manufactures is relatively low, the region with the more pollutant technology can experience a loss from trade in the long run. Finally, Chapter 4 is co-authored with Yves Richelle. In this chapter, we consider the problem of efficiently allocating water of a lake among different potential users. We consider two types of irreversibility: the irreversibility of an investment that creates a fixed damage to the ecosystem and the irreversibility of the right to use the resource that comes from the legislation (legislative irreversibility). First of all, we determine the value of water for users. Then, we characterize the optimal allocation of water among users. With legislative irreversibility, we show that it is sometimes optimal to reduce the amount of water allocated to the firm, even though there is no rivalry in use. Moreover, we show that it is not always optimal to prevent the damage created by the irreversible vi investment. We define the context, in which it is optimal to intervene to prevent the damage. Furthermore, with irreversibility, we prove that the marginal value of water at the efficient allocation for users is not equalized. Overall, we show that in the case of no rivalry in use, unused water should not be seen as a limitless resource to be used in any way whatever.
Migration Open access renewable resource Storage Rice-fish culture Two-sector dynamic model Migration Pollution externality Water allocation Irreversibility Value of water