IDEAS home Printed from https://ideas.repec.org/a/uwp/landec/v73y1997i4p516-527.html
   My bibliography  Save this article

Hicksian Income from Resource Extraction in an Open Economy

Author

Listed:
  • Kjell Arne Brekke

Abstract

We derive a measure of national income, defined in terms of maximum sustainable per capita consumption. If population and interest rates are constant, the income generated by natural resource extraction is the return on resource wealth, defined as the present value of future resource rents. With a growing population or declining interest rate, sustainability requires net increases in wealth over time. The income from extraction of nonrenewable resources can exceed resource rents, contrary to the conclusions of El Serafy (1989) and Repetto et al. (1989). Finally, we present an example illustrating the hazard of consuming the full increment of Hicksian income.

Suggested Citation

  • Kjell Arne Brekke, 1997. "Hicksian Income from Resource Extraction in an Open Economy," Land Economics, University of Wisconsin Press, vol. 73(4), pages 516-527.
    • Handle: RePEc:uwp:landec:v:73:y:1997:i:4:p:516-527
    as

    Download full text from publisher

    File URL: http://www.jstor.org/stable/pdfplus/3147243
    Download Restriction: A subscripton is required to access pdf files. Pay per article is available.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Michael Harris, 2001. "Revaluations and Capital Gains in the Context of Natural Resource Accounting," Working Papers 2001.08, School of Economics, La Trobe University.
    2. Geir Asheim & Taoyuan Wei, 2009. "Sectoral Income," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 42(1), pages 65-87, January.
    3. Harris, M., 2000. "Some Unpleasant Natural Resource Accounting Arithmetic: The Welfare Inconsitency of," Department of Economics - Working Papers Series 765, The University of Melbourne.
    4. Haener, Michel K. & Adamowicz, Victor L., 2000. "Incorporation of risk in regional forest resource accounts," Ecological Economics, Elsevier, vol. 33(3), pages 439-455, June.
    5. Gren, Ing-Marie & Isacs, Lina, 2009. "Ecosystem services and regional development: An application to Sweden," Ecological Economics, Elsevier, vol. 68(10), pages 2549-2559, August.
    6. Harris, Michael & Fraser, Iain, 2002. "Natural resource accounting in theory and practice: A critical assessment," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 46(2), pages 1-54.
    7. Gowdy, John, 2005. "Toward a new welfare economics for sustainability," Ecological Economics, Elsevier, vol. 53(2), pages 211-222, April.
    8. Salvati, Luca & Carlucci, Margherita, 2010. "Estimating land degradation risk for agriculture in Italy using an indirect approach," Ecological Economics, Elsevier, vol. 69(3), pages 511-518, January.
    9. Omri, Emna & Chtourou, Nouri & Bazin, Damien, 2015. "Solar thermal energy for sustainable development in Tunisia: The case of the PROSOL project," Renewable and Sustainable Energy Reviews, Elsevier, vol. 41(C), pages 1312-1323.
    10. Eric Neumayer, 2000. "Resource Accounting in Measures of Unsustainability: Challenging the World Bank's Conclusions," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 15(3), pages 257-278, March.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:uwp:landec:v:73:y:1997:i:4:p:516-527. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: the person in charge (email available below). General contact details of provider: http://le.uwpress.org/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.