Robust Policy Selection and Harvest Risk Quantification for Natural Resources Management under Model Uncertainty

Abstract

In this work the problem of optimal harvesting policy selection for natural resources management under model uncertainty is investigated. Under the framework of the neoclassical growth model dynamics, the associated optimal control problem is investigated by introducing the concept of model uncertainty on the initial conditions of the operational procedure. At this stage, the notion of convex risk measures, and in particular the class of Fr\'echet risk measures, is employed in order to quantify the total operational and marginal risk, whereas simultaneously obtaining robust to model uncertainty harvesting strategies.