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Non-renewable resources in the long run

Hart, Robert (2016). Non-renewable resources in the long run. Journal of economic dynamics & control. 71 , 1-20
[Research article]

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Available under License Creative Commons Attribution Non-commercial No Derivatives.



We model a competitive economy in which production is dependent on labor and a non-renewable resource, the stock of which is inhomogeneous. We solve the model analytically and show how in infinite time the economy moves away from an initial balanced growth path (b.g.p.) and towards a mature b.g.p. The characteristics of the initial b.g.p. match historical observations of slowly declining resource price and consumption growth tracking global product. The mature b.g.p. depends on the nature of the stock; the more steeply cross-sectional area declines with depth, the faster the rate of price increase. We show how the theoretical model may be adapted and parameterized to explain and predict the evolution of markets for specific resources, applying the model in two cases, copper and petroleum. (C) 2016 Elsevier B.V. All rights reserved.

Authors/Creators:Hart, Robert
Title:Non-renewable resources in the long run
Series Name/Journal:Journal of economic dynamics & control
Year of publishing :2016
Page range:1-20
Number of Pages:20
Publication Type:Research article
Article category:Scientific peer reviewed
Version:Accepted version
Copyright:Creative Commons: Attribution-Noncommercial-No Derivative Works 4.0
Full Text Status:Public
Subjects:(A) Swedish standard research categories 2011 > 5 Social Sciences > 502 Economics and Business > Economics
Agrovoc terms:resource management, economic systems
Keywords:Non-renewable natural resources, Exhaustible resources, Hotelling rule
Permanent URL:
Additional ID:
Type of IDID
Web of Science (WoS)000384861700001
ID Code:14163
Faculty:NJ - Fakulteten för naturresurser och jordbruksvetenskap
Department:(NL, NJ) > Dept. of Economics
Deposited By: SLUpub Connector
Deposited On:06 Apr 2017 06:58
Metadata Last Modified:26 Oct 2020 01:53

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