A model of resource conservation for rural subsistence households

• Mario Niklitschek ^[1]
  1. [1] Universidad de Concepción

     Universidad de Concepción

     Comuna de Concepción, Chile

     
• Localización: Revista de análisis económico, ISSN-e 0718-8870, ISSN 0716-5927, Vol. 5, Nº 2 (Editor Invitado: John Dixon), 1990, págs. 69-79
• Idioma: inglés
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• Resumen

  • This paper presents a dynamic model of a rural household that is economicaly dependent on the exploitation of a renewable natural resource. A special feature of the model is that resource utilization decisions we 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 wage, 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 affect rural household economic welfare, but also environmental resources.