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This paper analyzes conservation and extinction of renewable resources when the production function is nonconcave and the return function depends on consumption and the resource stock. The paper focuses on the efficiency of global conservation, a safe standard of conservation, and extinction. Which outcome obtains depends on the marginal rate of substitution between investment and the stock in addition to the discount factor and the marginal productivity of the resource. Conservation may be efficient even if the discounted intrinsic growth rate of the resource is less than 1.Journal of Economic LiteratureClassification Numbers: D90, Q20.
Olson et al. (Mon,) studied this question.