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On Cost-Benefit Rules in an Economy with Natural Resources

Author

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  • P-O Johansson

    (Department of Economics, University of Umeå, S-901 87 Umeå, Sweden)

Abstract

Traditionally the rules to be used when evaluating the efficiency gains from (public sector) projects are derived from models in which there are no natural resources. If the use of a certain natural resource is discussed the implicit assumption seems to be that the traditional project evaluation rules are applicable. In this paper it is shown that the traditional cost-benefit rules are misleading if the economy is making use of exhaustible or renewable resources.

Suggested Citation

  • P-O Johansson, 1983. "On Cost-Benefit Rules in an Economy with Natural Resources," Environment and Planning C, , vol. 1(1), pages 107-116, March.
    • Handle: RePEc:sae:envirc:v:1:y:1983:i:1:p:107-116
    DOI: 10.1068/c010107
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