A simplified feedback approach to optimal resource management

Abstract

Optimal exploitation of a renewable capital stock is derived as a feedback rule for a general dynamic optimisation problem with a single resource. By a feedback rule is meant that optimal exploitation is given as an explicit function of the capital stock. The value of the simplified approach will be appreciated by everybody who have tried to determine the separatrix solution numerically and experienced problems. The method described here can be applied to fisheries management, animal stock conservation and conservation of the environment in general. The operationality of the method outlined here is illustrated by two simple examples, one related to fisheries management and one related to pollution control.