The economics of natural resources: Understanding and predicting the evolution of supply and demand
AbstractWe develop a dynamic model of prices and quantities of non-renewable resources, carefully justifying our assumptions. Resource stocks are inhomogeneous, and there is endogenous directed technological change both in extraction and ﬁnal-good production. The model explains stylized facts while simultaneously providing a framework for prediction; it yields analytical results in the baseline case, and may be developed to make empirical predictions about real resources. In the baseline case the economy passes through a series of phases: initially resource consumption is low; as technology improves, resource consumption rises and real resource price is constant; in the long run there is a transition to a b.g.p. on which resource consumption is constant and resource price tracks the wage.
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Bibliographic InfoPaper provided by Department Economics, Swedish University of Agricultural Sciences in its series Working Paper Series with number 2012:01.
Length: 26 pages
Date of creation: 04 May 2012
Date of revision:
Contact details of provider:
Postal: Department of Economics, Box 7013, Swedish University of Agricultural Sciences, SE-750 07 Uppsala, Sweden
Phone: 018-67 1724
Fax: 018-67 3502
Web page: http://www.slu.se/ekonomi
More information through EDIRC
Directed technological change; Natural resources; Hotelling rule.;
Find related papers by JEL classification:
- O13 - Economic Development, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
- O33 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-06-05 (All new papers)
- NEP-ENE-2012-06-05 (Energy Economics)
- NEP-ENV-2012-06-05 (Environmental Economics)
- NEP-FOR-2012-06-05 (Forecasting)
- NEP-RES-2012-06-05 (Resource Economics)
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