Abstract
This paper presents empirical evidence which indicates that the introduction of petroleum based products on the American markets was a significant factor in reducing the demand for whale oil. As a result, the whaling industry, America’s 5th largest industry at the time, soon collapsed. A counterfactual study is then presented which suggests that if the introduction of petroleum based products had been delayed, then the increase in demand as a result of rising GDP per capita, as well as rapid industrialization, would have given whalers incentive to continue chasing after a diminishing whale population. This could have resulted in the baleen whale population being subject to unsustainable harvest levels.
Highlights
This paper presents an interesting case study of the American whaling industry during the 1800s
It is interesting to consider that the discovery of petroleum products, a major contributor to green house gas emissions, was instrumental in relieving much of the stress placed on the whale populations during the golden age of whaling
There are other methods of population management that compete with maximum sustainable yield (MSY), such as; Optimum Sustainable Yield, Yield Per Recruitment, Age Structured Models, Catch Limit Algorithm, Strike Limit Algorithms
Summary
This paper presents an interesting case study of the American whaling industry during the 1800s. From a classical point of view, regulation should be held to a minimum The reason for this is that in the case of a natural renewable resource, as the population declines it becomes more and more difficult to harvest the remaining population. It is interesting to consider that the discovery of petroleum products, a major contributor to green house gas emissions, was instrumental in relieving much of the stress placed on the whale populations during the golden age of whaling This historical analysis is interesting in reminding us of the power that market forces have at holding down prices and reducing demand for a valuable commodity (such as petroleum oil in today’s markets) when a competitively priced alternative product is introduced. A conclusion and discussion is presented at the end of the paper
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