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BIODIVERSITY IN AGRICOLTURE
In this paper we develop a dynamic model on the optimal preservation of biodiversity. We focus on the trade off between harvesting and the preservation of biodiversity. To bring out the structure of the problem we aim for simplicity as well as a high levef of abstraction. We assume extreme symmetry between species. The simpli~ing assumptions mean that we can draw on the properties of the solution of the classical linear harvesting problem. A sole resource owner is assumed to maximize the discounted profits from both harvest and diversity services. We characterize the steady state and the dynamic path of the harvest and standing stock of renewable resources as well as the bio diversity measure. We show that the structure of the problem is rather robust to relaxations of simplifying assumptions. |