Sustainability in Resource Economies: Revisited
AbstractSustainability of the average level of consumption in resource economies is examined under price uncertainty. The resource type is either purely exhaustible or renewable. Planners in the resource economies have precise knowledge of the present market price of the extracted resource. But its future course is by no means certain for them. It is well known that the planners can expect the national consumption level kept constant if the competitive resource rent at each moment of time is invested to non-resource capital, provided that the resource price is constant throughout the planning period. Here we need to modify the rule to incorporate capital gains or losses arising from the price changes. The paper shows that the uncertainty affects the average level of consumption only when the cost of extraction is nonlinear in the extraction level.
Download InfoTo our knowledge, this item is not available for download. To find whether it is available, there are three options:
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
Bibliographic InfoPaper provided by Research Institute for Economics & Business Administration, Kobe University in its series Discussion Paper Series with number 100.
Length: 17 pages
Date of creation: Nov 1999
Date of revision:
Contact details of provider:
Postal: 2-1 Rokkodai, Nada, Kobe 657-8501 JAPAN
Phone: +81-(0)78 803 7036
Fax: +81-(0)78 803 7059
Web page: http://www.rieb.kobe-u.ac.jp/index-e.html
More information through EDIRC
Natural resources; Uncertanty; Prices;
Find related papers by JEL classification:
- F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
- Q38 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Government Policy (includes OPEC Policy)
You can help add them by filling out this form.
reading list or among the top items on IDEAS.Access and download statisticsgeneral information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Office of Promoting Research Collaboration, Research Institute for Economics & Business Administration, Kobe University).
If references are entirely missing, you can add them using this form.