Publication Type
Working Paper
Version
publishedVersion
Publication Date
12-2006
Abstract
Myopia is important in environmental and resource management problems because they often involve intertemporal decisions over a long time horizon. We present a parsimonious extension of standard dynamic programming equation in a continuous time and continuous state setting, which enables rich description of myopic behavior. In our model, the process of planning future controls and choosing current control are clearly distinguished. We Illustrate the behavior of various types of myopic agents with a simple example of non-renewable resource extraction, and discuss the policy relevance of the expiry of extraction permits to resource management under Myopia.
Keywords
non-constant discounting, resource management, myopia, time-consistency, observational equivalence
Discipline
Agricultural and Resource Economics
Research Areas
Applied Microeconomics
First Page
1
Last Page
35
Publisher
SMU Economics and Statistics Working Paper Series, No. 26-2006
City or Country
Singapore
Citation
FUJII, Tomoki.
Environmental and Resource Management under Myopia. (2006). 1-35.
Available at: https://ink.library.smu.edu.sg/soe_research/943
Copyright Owner and License
Authors
Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-No Derivative Works 4.0 International License.