Abstract
Using data from what was once one of the world's largest capture fisheries, the northern cod fishery, the economic value of a marine reserve is calculated using a stochastic optimal control model with a jump-diffusion process. Counterfactual analysis shows that with a stochastic environment an optimal-sized marine reserve in this fishery would have prevented the fishery's collapse and generated a triple payoff: raising resource rents even if harvesting was "optimal"; decreasing recovery time for the biomass to return to its former state, smoothing fishers' harvests and resource rents; and lowering the chance of a catastrophic collapse following a negative shock. _2009 by the Board of Regents of the University of Wisconsin System.
| Original language | English |
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| Pages (from-to) | 454-469 |
| Journal | Land Economics |
| Volume | 85 |
| Issue number | 3 |
| Publication status | Published - 2009 |