Optimal control of renewable resources with alternative use

Authors:
Adriana Piazza;Alain Rapaport
Affiliations:
Centro de Modelamiento Matemático, Universidad de Chile, Blanco Encalada 2120, 7 Piso, Santiago, Chile;UMR Analyse des Systèmes et Biométrie. 2, place Pierre Viala. 34060, Montpellier Cedex 2, France
Venue:
Mathematical and Computer Modelling: An International Journal
Year:
2009

Citing 2
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Abstract

We study the optimal harvesting of a renewable resource that cannot be continuously exploited, i.e. after the harvest the released space cannot be immediately reallocated to the resource. In the meantime, this space can be given an alternative use of positive utility. We consider a discrete time model over an infinite horizon with discounting, and characterize the optimality of two myopic policies, the greedy and the sustainable ones. We then show that the optimal strategy consists in applying one of these policies after a finite number of time steps. Value function and optimal feedback are explicitly determined.