The Hotelling rule in non‐renewable resource economics: A reassessment

The tropical rain forest: a nonrenewable resource.

On the other hand, it has often been stated that the tropical rain forests (tall evergreen forests in tropical warm and humid regions) around the world must be protected and conserved for the future generations (1). It has also been stated that it is most important that knowledge about the structure, diversity, and function of these ecosystems has priority in future biological research (2). Unf...

Economic Growth with a Nonrenewable Resource

This paper adds a nonrenewable resource to capital and labor in the neoclassical growth model. The nonrenewable resource introduces its depletion dynamics and expands the influence of input substitution on the growth path. Optimal depletion implies a rising resource price but investment or labor growth may raise extraction along the growth curve. Substitution between inputs plays a critical rol...

Optimal Exploitation of a Nonrenewable Resource

In this paper we study the long-term operation of an underground copper mining project. We model the project as a collection of blocks (minimal extraction units) each with its own mineral composition and extraction costs. The decision maker’s problem is to maximize the economic value of the project by controlling the sequence and rate of extraction as well as investing on costly capacity expans...

Natural Nonrenewable Resource Development Information and Knowledge

Nonrenewable Resource Allocation under Intertemporally Dependent Demand

This paper investigates the implications of an intertemporally dependent demand structure in the market for an exhaustible resource. The demand structure is derived endogenously in a partial equilibrium model where price-taking users combine the resource with capital to produce final output. It is shown that, when demand for the resource is modelled explicitly as a derived demand, the common as...