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The Economics of Nonrenewable Resources
The economics of nonrenewable resources addresses some of the most problematic issues concerning the sustainability of the world economy. This comprehensive one volume collection contains forty-six of the most important and influential journal articles by some of the leading scholars in the field. Subjects included are: an introduction to the economics of nonrenewable resources; theoretical foundations for the field; nonhomogeneous resources; exploration and uncertainty; market structure; taxation and global climate change. The collection concludes with a discussion of the empirical research and the extent to which nonrenewable resources constrain economic growth as well as the consistency of the theoretical predictions of Hotelling-type models with actual economic outcomes.
With an original introduction by the editor, this collection will be an important resource for students, academics and practitioners.
With an original introduction by the editor, this collection will be an important resource for students, academics and practitioners.
More Information
Contributors
Contents
More Information
The economics of nonrenewable resources addresses some of the most problematic issues concerning the sustainability of the world economy. This comprehensive one volume collection contains forty-six of the most important and influential journal articles by some of the leading scholars in the field. Subjects included are: an introduction to the economics of nonrenewable resources; theoretical foundations for the field; nonhomogeneous resources; exploration and uncertainty; market structure; taxation and global climate change. The collection concludes with a discussion of the empirical research and the extent to which nonrenewable resources constrain economic growth as well as the consistency of the theoretical predictions of Hotelling-type models with actual economic outcomes.
With an original introduction by the editor, this collection will be an important resource for students, academics and practitioners.
With an original introduction by the editor, this collection will be an important resource for students, academics and practitioners.
Contributors
46 articles, dating from 1931 to 2012
Contributors include: K.J. Arrow, P. Dasgupta, J.M. Hartwick, G.M. Heal, M. Hoel, H. Hotelling, R.S. Pindyck, R.M. Solow, J.E. Stiglitz, M.L. Weitzman
Contributors include: K.J. Arrow, P. Dasgupta, J.M. Hartwick, G.M. Heal, M. Hoel, H. Hotelling, R.S. Pindyck, R.M. Solow, J.E. Stiglitz, M.L. Weitzman
Contents
Contents:
Research Review Robert Halvorsen
Introduction Robert Halvorsen
PART I SOLOW’S RICHARD T. ELY LECTURE
1. Robert M. Solow (1974), ‘The Economics of Resources or the Resources of Economics’, American Economic Review, 64 (2), May, 1–14
PART II THEORETICAL FOUNDATIONS
2. Harold Hotelling (1931), ‘The Economics of Exhaustible Resources’, Journal of Political Economy, 39 (2), April, 137–75
3. Partha Dasgupta and Geoffrey Heal (1974), ‘The Optimal Depletion of Exhaustible Resources’, Review of Economic Studies, Symposium on the Economics of Exhaustible Resources, 41 (5), December, 3–28
4. Joseph E. Stiglitz (1974), ‘Growth with Exhaustible Natural Resources: Efficient and Optimal Growth Paths’, Review of Economic Studies, Symposium on the Economics of Exhaustible Resources, 41 (5), December, 123–37
5. R. M. Solow (1974), ‘Intergenerational Equity and Exhaustible Resources’, Review of Economic Studies, Symposium on the Economics of Exhaustible Resources, 41 (5), December, 29–45
PART III NONHOMOGENOUS RESOURCES
6. Geoffrey Heal (1976), ‘The Relationship between Price and Extraction Cost for a Resource with a Backstop Technology’, Bell Journal of Economics, 7 (2), Autumn, 371–8
7. Robert M. Solow and Frederic Y. Wan (1976), ‘Extraction Costs in the Theory of Exhaustible Resources’, Bell Journal of Economics, 7 (2), Autumn, 359–70
8. David Levhari and Nissan Liviatan (1977), ‘Notes on Hotelling’s Economics of Exhaustible Resources’, Canadian Journal of Economics, 10 (2), May, 177–92
9. Y. H. Farzin (1992), ‘The Time Path of Scarcity Rent in the Theory of Exhaustible Resources’, Economic Journal, 102 (413), July, 813–30
PART IV EXPLORATION AND UNCERTAINTY
10. Robert S. Pindyck (1978), ‘The Optimal Exploration and Production of Nonrenewable Resources’, Journal of Political Economy, 86 (5), October, 841–61
11. John R. Livernois and Russell S. Uhler (1987), ‘Extraction Costs and the Economics of Nonrenewable Resources’, Journal of Political Economy, 95 (1), February, 195–203
12. Kenneth J. Arrow and Sheldon Chang (1982), ‘Optimal Pricing, Use, and Exploration of Uncertain Natural Resource Stocks’, Journal of Environmental Economics and Management, 9 (1), March, 1–10
13. Partha Dasgupta and Joseph Stiglitz (1981), ‘Resource Depletion under Technological Uncertainty’, Econometrica, 49 (1), January, 85–104
14. Robert S. Pindyck (1980), ‘Uncertainty and Exhaustible Resource Markets’, Journal of Political Economy, 88 (6), December, 1203–25
15. Joseph E. Swierzbinski and Robert Mendelsohn (1989), ‘Information and Exhaustible Resources: A Bayesian Analysis’, Journal of Environmental Economics and Management, 16 (3), May, 193–208
PART V ADDITIONAL DEVELOPMENT OF THEORY
16. John M. Hartwick (1977), ‘Intergenerational Equity and the Investing of Rents from Exhaustible Resources’, American Economic Review, 67 (5), December, 972–4
17. James L. Sweeney (1977), ‘Economics of Depletable Resources: Market Forces and Intertemporal Bias’, Review of Economic Studies, 44 (1), February, 125–41
18. David Levhari and Robert S. Pindyck (1981), ‘The Pricing of Durable Exhaustible Resources’, Quarterly Journal of Economics, XCVI (3), August, 365–77
19. Y. Hossein Farzin (1984), ‘The Effect of the Discount Rate on Depletion of Exhaustible Resources’, Journal of Political Economy, 92 (5), October, 841–51
20. Gérard Gaudet, Michel Moreau and Stephan Salant (2001), ‘Intertemporal Depletion of Resource Sites by Spatially Distributed Users’, American Economic Review, 91 (4), September, 1149–59
PART VI MARKET STRUCTURE
21. Joseph E. Stiglitz (1976), ‘Monopoly and the Rate of Extraction of Exhaustible Resources’, American Economic Review, 66 (4), September, 655–61
22. Stephen W. Salant (1976), ‘Exhaustible Resources and Industrial Structure: A Nash-Cournot Approach to the World Oil Market’, Journal of Political Economy, 84 (5), October, 1079–94
23. Michael Hoel (1978), ‘Resource Extraction, Substitute Production, and Monopoly’, Journal of Economic Theory, 19 (1), October, 28–37
24. Joseph E. Stiglitz and Partha Dasgupta (1982), ‘Market Structure and Resource Depletion: A Contribution to the Theory of Intertemporal Monopolistic Competition’, Journal of Economic Theory, 28 (1), October, 128–64
25. Partha Dasgupta, Richard J. Gilbert and Joseph E. Stiglitz (1982), ‘Invention and Innovation Under Alternative Market Structures: The Case of Natural Resources’, Review of Economic Studies, XLIY (4), October, 567–82
26. Hassan Benchekroun, Gérard Gaudet and Ngo Van Long (2006), ‘Temporary Natural Resource Cartels’, Journal of Environmental Economics and Management, 52 (3), November, 663–74
27. Gregory M. Ellis and Robert Halvorsen (2002), ‘Estimation of Market Power in a Nonrenewable Resource Industry’, Journal of Political Economy, 110 (4), August, 883–99
PART VII TAXATION
28. Ross Garnaut and Anthony Clunies Ross (1975), ‘Uncertainty, Risk Aversion and the Taxing of Natural Resource Projects’, Economic Journal, 85 (338), June, 272–87
29. Terry Heaps (1985), ‘The Taxation of Nonreplenishable Natural Resources Revisited’, Journal of Environmental Economics and Management, 12 (1), March, 14–27
30. Margaret E. Slade (1986), ‘Taxation of Non-Renewable Resources at Various Stages of Production, Canadian Journal of Economics, 19 (2), May, 281–97
31. Larry Karp and John Livernois (1992), ‘On Efficiency-Inducing Taxation for a Non-Renewable Resource Monopolist’ Journal of Public Economics, 49 (2), November, 219–39
PART VIII GLOBAL CLIMATE CHANGE
32. Alistair Ulph and David Ulph (1994), ‘The Optimal Time Path of a Carbon Tax’, Oxford Economic Papers, Special Issue on Environmental Economics, 46 Supplement 1, 857–68
33. Michael Hoel and Snorre Kverndokk (1996), ‘Depletion of Fossil Fuels and the Impacts of Global Warming’, Resource and Energy Economics, 18 (2), June, 115–36
34. Hans-Werner Sinn (2008), ‘Public Policies against Global Warming: A Supply Side Approach’, International Tax and Public Finance, 15 (4), August, 360–94
35. Reyer Gerlagh (2011), ‘Too Much Oil’, CESifo Economic Studies, 57 (1), 79–102
36. Frederick van der Ploeg and Cees Withagen (2012), ‘Is There Really a Green Paradox?’, Journal of Environmental Economics and Management, 64 (3), November, 342–63
PART IX RESOURCE CURSE
37. Jeffrey D. Sachs and Andrew M. Warner (2001), ‘Natural Resources and Economic Development: The Curse of Natural Resources’, European Economic Review, 45 (4-6), May, 827–38
38. Rabah Arezki and Frederick van der Ploeg (2011), ‘Do Natural Resources Depress Income Per Capita?’, Review of Development Economics, 15 (3), August, 504–21
PART X EMPIRICAL EVIDENCE
39. Manuel H. Johnson, Frederick W. Bell and James T. Bennett (1980), ‘Natural Resource Scarcity: Empirical Evidence and Public Policy’, Journal of Environmental Economics and Management, 7 (3), September, 256–71
40. Gardner M. Brown Jr. and Barry C. Field (1978), ‘Implications of Alternative Measures of Natural Resource Scarcity’, Journal of Political Economy, 86 (2), Part 1, April, 229–43
41. Margaret E. Slade (1982), ‘Trends in Natural-Resource Commodity Prices: An Analysis of the Time Domain’, Journal of Environmental Economics and Management, 9 (2), June, 122–37
42. Junsoo Lee, John A. List and Mark C. Strazicich (2006), ‘Non-Renewable Resource Prices: Deterministic or Stochastic Trends?’, Journal of Environmental Economics and Management, 51 (3), May, 354–70
43. Geoffrey M. Heal and Michael Barrow (1980), ‘The Relationship Between Interest Rates and Metal Price Movements’, Review of Economic Studies, Econometrics Issue, 47 (1), January, 161–81
44. Robert Halvorsen and Tim R. Smith (1991), ‘A Test of the Theory of Exhaustible Resources’, Quarterly Journal of Economics, 106 (1), February, 123–40
45. Merton H. Miller and Charles W. Upton (1985), ‘A Test of the Hotelling Valuation Principle’, Journal of Political Economy, 93 (1), February, 1–25
46. Martin L. Weitzman (1999), ‘Pricing the Limits to Growth from Minerals Depletion’, Quarterly Journal of Economics, 114 (2), May, 691–706
Index
Research Review Robert Halvorsen
Introduction Robert Halvorsen
PART I SOLOW’S RICHARD T. ELY LECTURE
1. Robert M. Solow (1974), ‘The Economics of Resources or the Resources of Economics’, American Economic Review, 64 (2), May, 1–14
PART II THEORETICAL FOUNDATIONS
2. Harold Hotelling (1931), ‘The Economics of Exhaustible Resources’, Journal of Political Economy, 39 (2), April, 137–75
3. Partha Dasgupta and Geoffrey Heal (1974), ‘The Optimal Depletion of Exhaustible Resources’, Review of Economic Studies, Symposium on the Economics of Exhaustible Resources, 41 (5), December, 3–28
4. Joseph E. Stiglitz (1974), ‘Growth with Exhaustible Natural Resources: Efficient and Optimal Growth Paths’, Review of Economic Studies, Symposium on the Economics of Exhaustible Resources, 41 (5), December, 123–37
5. R. M. Solow (1974), ‘Intergenerational Equity and Exhaustible Resources’, Review of Economic Studies, Symposium on the Economics of Exhaustible Resources, 41 (5), December, 29–45
PART III NONHOMOGENOUS RESOURCES
6. Geoffrey Heal (1976), ‘The Relationship between Price and Extraction Cost for a Resource with a Backstop Technology’, Bell Journal of Economics, 7 (2), Autumn, 371–8
7. Robert M. Solow and Frederic Y. Wan (1976), ‘Extraction Costs in the Theory of Exhaustible Resources’, Bell Journal of Economics, 7 (2), Autumn, 359–70
8. David Levhari and Nissan Liviatan (1977), ‘Notes on Hotelling’s Economics of Exhaustible Resources’, Canadian Journal of Economics, 10 (2), May, 177–92
9. Y. H. Farzin (1992), ‘The Time Path of Scarcity Rent in the Theory of Exhaustible Resources’, Economic Journal, 102 (413), July, 813–30
PART IV EXPLORATION AND UNCERTAINTY
10. Robert S. Pindyck (1978), ‘The Optimal Exploration and Production of Nonrenewable Resources’, Journal of Political Economy, 86 (5), October, 841–61
11. John R. Livernois and Russell S. Uhler (1987), ‘Extraction Costs and the Economics of Nonrenewable Resources’, Journal of Political Economy, 95 (1), February, 195–203
12. Kenneth J. Arrow and Sheldon Chang (1982), ‘Optimal Pricing, Use, and Exploration of Uncertain Natural Resource Stocks’, Journal of Environmental Economics and Management, 9 (1), March, 1–10
13. Partha Dasgupta and Joseph Stiglitz (1981), ‘Resource Depletion under Technological Uncertainty’, Econometrica, 49 (1), January, 85–104
14. Robert S. Pindyck (1980), ‘Uncertainty and Exhaustible Resource Markets’, Journal of Political Economy, 88 (6), December, 1203–25
15. Joseph E. Swierzbinski and Robert Mendelsohn (1989), ‘Information and Exhaustible Resources: A Bayesian Analysis’, Journal of Environmental Economics and Management, 16 (3), May, 193–208
PART V ADDITIONAL DEVELOPMENT OF THEORY
16. John M. Hartwick (1977), ‘Intergenerational Equity and the Investing of Rents from Exhaustible Resources’, American Economic Review, 67 (5), December, 972–4
17. James L. Sweeney (1977), ‘Economics of Depletable Resources: Market Forces and Intertemporal Bias’, Review of Economic Studies, 44 (1), February, 125–41
18. David Levhari and Robert S. Pindyck (1981), ‘The Pricing of Durable Exhaustible Resources’, Quarterly Journal of Economics, XCVI (3), August, 365–77
19. Y. Hossein Farzin (1984), ‘The Effect of the Discount Rate on Depletion of Exhaustible Resources’, Journal of Political Economy, 92 (5), October, 841–51
20. Gérard Gaudet, Michel Moreau and Stephan Salant (2001), ‘Intertemporal Depletion of Resource Sites by Spatially Distributed Users’, American Economic Review, 91 (4), September, 1149–59
PART VI MARKET STRUCTURE
21. Joseph E. Stiglitz (1976), ‘Monopoly and the Rate of Extraction of Exhaustible Resources’, American Economic Review, 66 (4), September, 655–61
22. Stephen W. Salant (1976), ‘Exhaustible Resources and Industrial Structure: A Nash-Cournot Approach to the World Oil Market’, Journal of Political Economy, 84 (5), October, 1079–94
23. Michael Hoel (1978), ‘Resource Extraction, Substitute Production, and Monopoly’, Journal of Economic Theory, 19 (1), October, 28–37
24. Joseph E. Stiglitz and Partha Dasgupta (1982), ‘Market Structure and Resource Depletion: A Contribution to the Theory of Intertemporal Monopolistic Competition’, Journal of Economic Theory, 28 (1), October, 128–64
25. Partha Dasgupta, Richard J. Gilbert and Joseph E. Stiglitz (1982), ‘Invention and Innovation Under Alternative Market Structures: The Case of Natural Resources’, Review of Economic Studies, XLIY (4), October, 567–82
26. Hassan Benchekroun, Gérard Gaudet and Ngo Van Long (2006), ‘Temporary Natural Resource Cartels’, Journal of Environmental Economics and Management, 52 (3), November, 663–74
27. Gregory M. Ellis and Robert Halvorsen (2002), ‘Estimation of Market Power in a Nonrenewable Resource Industry’, Journal of Political Economy, 110 (4), August, 883–99
PART VII TAXATION
28. Ross Garnaut and Anthony Clunies Ross (1975), ‘Uncertainty, Risk Aversion and the Taxing of Natural Resource Projects’, Economic Journal, 85 (338), June, 272–87
29. Terry Heaps (1985), ‘The Taxation of Nonreplenishable Natural Resources Revisited’, Journal of Environmental Economics and Management, 12 (1), March, 14–27
30. Margaret E. Slade (1986), ‘Taxation of Non-Renewable Resources at Various Stages of Production, Canadian Journal of Economics, 19 (2), May, 281–97
31. Larry Karp and John Livernois (1992), ‘On Efficiency-Inducing Taxation for a Non-Renewable Resource Monopolist’ Journal of Public Economics, 49 (2), November, 219–39
PART VIII GLOBAL CLIMATE CHANGE
32. Alistair Ulph and David Ulph (1994), ‘The Optimal Time Path of a Carbon Tax’, Oxford Economic Papers, Special Issue on Environmental Economics, 46 Supplement 1, 857–68
33. Michael Hoel and Snorre Kverndokk (1996), ‘Depletion of Fossil Fuels and the Impacts of Global Warming’, Resource and Energy Economics, 18 (2), June, 115–36
34. Hans-Werner Sinn (2008), ‘Public Policies against Global Warming: A Supply Side Approach’, International Tax and Public Finance, 15 (4), August, 360–94
35. Reyer Gerlagh (2011), ‘Too Much Oil’, CESifo Economic Studies, 57 (1), 79–102
36. Frederick van der Ploeg and Cees Withagen (2012), ‘Is There Really a Green Paradox?’, Journal of Environmental Economics and Management, 64 (3), November, 342–63
PART IX RESOURCE CURSE
37. Jeffrey D. Sachs and Andrew M. Warner (2001), ‘Natural Resources and Economic Development: The Curse of Natural Resources’, European Economic Review, 45 (4-6), May, 827–38
38. Rabah Arezki and Frederick van der Ploeg (2011), ‘Do Natural Resources Depress Income Per Capita?’, Review of Development Economics, 15 (3), August, 504–21
PART X EMPIRICAL EVIDENCE
39. Manuel H. Johnson, Frederick W. Bell and James T. Bennett (1980), ‘Natural Resource Scarcity: Empirical Evidence and Public Policy’, Journal of Environmental Economics and Management, 7 (3), September, 256–71
40. Gardner M. Brown Jr. and Barry C. Field (1978), ‘Implications of Alternative Measures of Natural Resource Scarcity’, Journal of Political Economy, 86 (2), Part 1, April, 229–43
41. Margaret E. Slade (1982), ‘Trends in Natural-Resource Commodity Prices: An Analysis of the Time Domain’, Journal of Environmental Economics and Management, 9 (2), June, 122–37
42. Junsoo Lee, John A. List and Mark C. Strazicich (2006), ‘Non-Renewable Resource Prices: Deterministic or Stochastic Trends?’, Journal of Environmental Economics and Management, 51 (3), May, 354–70
43. Geoffrey M. Heal and Michael Barrow (1980), ‘The Relationship Between Interest Rates and Metal Price Movements’, Review of Economic Studies, Econometrics Issue, 47 (1), January, 161–81
44. Robert Halvorsen and Tim R. Smith (1991), ‘A Test of the Theory of Exhaustible Resources’, Quarterly Journal of Economics, 106 (1), February, 123–40
45. Merton H. Miller and Charles W. Upton (1985), ‘A Test of the Hotelling Valuation Principle’, Journal of Political Economy, 93 (1), February, 1–25
46. Martin L. Weitzman (1999), ‘Pricing the Limits to Growth from Minerals Depletion’, Quarterly Journal of Economics, 114 (2), May, 691–706
Index
