The economic payoffs from marine reserves: resource rents in a stochastic environment: WORKING PAPER

This record describes, and links to a working paper produced through the Crawford School of Economics and Government at The Australian National University in Canberra.\r\n*****\r\nThe paper analyses the economic payoffs from marine reserves using a stochastic optimal control model. The results show that even if the reserve and harvested populations face the same negative shocks, harvesting is optimal, the population is persistent and with no uncertainty over current stock size, a reserve can increase resource rents. Using actual fishery data we demonstrate that the payoffs from a reserve, and also optimum reserve size, increase the larger is the magnitude of the negative shock, the greater its frequency, and the larger its relative impact on the harvested population.