Questions tagged [resource-economics]

Natural resource economics deals with the supply, demand, and allocation of natural resources.

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42 views

Have the stocks and flows of hunter-gatherer economies been formally analysed?

A lot of work in economic anthropology seems to be about allocation mechanisms. This feeds into economic discourses about the institutions governing markets and non-market alternatives, e.g. Douglas ...
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What would be the economic consequences of nature being granted personhood? [closed]

There have recently been moves to grant environmental personhood to parts of nature: The Guardian (Mar 2017): Māori tribe wins recognition for Whanganui river, meaning it must be treated as a living ...
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What is the relationship between the disciplines of Economics and Economic Geography?

Given the importance of natural resources in both Economic Geography and Ecological Economics I also wondered what the relationship was between these two in particular.
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Is weak sustainability (Hartwick's rule) possible on a global scale?

Hartwick's rule postulates that an economy is sustainable if all rents obtained from the extraction of non-renewable resources are re-invested in produced capital (Source). A typical example would be ...
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Is the income derived from owning a live animal profit or rent?

Natural resources are considered non-produced and yield rents, including land and the fruits of the land, e.g. trees. Does this extend to live animals? Or are live animals considered “produced” goods (...
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2answers
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Is the use/consumption of natural resources considered an externality per se?

On a finite planet natural resources are rival goods by definition, i.e. if one agent uses/consumes a natural resource it becomes unavailable for other agents. Mankiw defines an externality as "the ...
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What would the price of carbon emissions need to be for the EU to achieve its objective to be carbon neutral by 2050?

The EU committed to net zero green house emissions by 2050. (Source) It is regularly said that the a carbon tax of USD 40-80 / t CO2e (USD 50-100 by 2030) would be sufficient to reach the Paris ...
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Would a zero-growth economy with zero-growth population still have the same GDP?

If a country was to turn to a steady-state economy (or circular economy) where there is neither economic nor population growth with time, and there is no natural resources being added to the system ...
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What would happen to the world GDP if we run out of minerals to mine but not of sources of energy?

I was thinking about how the depletion of minerals (metals and all material we mine from the Earth) will affect the GDP of the world. I read somewhere that at the current extraction rate, we will run ...
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38 views

When does the law of diminishing returns apply?

Law of diminishing returns does not always apply: The law of diminishing returns states that in all productive processes, adding more of one factor of production, while holding all others constant, ...
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Is anyone familiar with the following basic resource sharing model?

Here is a resource sharing model, I do not remember where I came across it, I am wondering if this is well known in econometrics. Let $T > 0$ be the total quantity of resources. For example, ad ...
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What's an example of a resource, raw material that has become scarce?

I'm interested in the elasticity price demand that predicts that as a resource becomes more scarce, it gets more expensive. Regarding oil price this isn't clear. Is there an example of a resource ...
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The supply and demand of Virtual Products

We know that the fundamental economic problem is scarce resources relative to unlimited wants. **Does this apply to apps and Ebooks?**They are essentially virtual products who have in theory have ...
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What are exactly considered resources in modern economics?

I'm taking a basic course in economics and I'm trying to understand what the term "resources" really mean in this context. Reading this article, I found out that in classical economics, resources are ...
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Optimal population allocation layout over the Earth

Does exist some model of optimal people occupancy over whole our planet? Something accounting for climate, resources (with and without existing settlements) availability, progress and grows ...
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1answer
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Hotelling rule and the shadow prices in a peg

Hotelling rule states that at equilibrium $$\frac{\dot p(t)}{p(t)} = i$$ Meaning that rate of change of the price at time $t$ should be equal to $i$, the interest rate. Assume that the government ...
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Allocative efficiency — correlation between MB and p in populace with wealth inequality

I was reading a paragraph in an economics textbook that was talking about resource allocation, and felt that it missed an important point, leading to a conclusion that I disagreed with. I was hoping ...
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Can the stock market show indefinite exponential growth?

In a comments on a question on money.SE, the following dialog took place: Eventually there will not be enough matter to represent all the money, so we know for certain that the answer is "No" for a ...
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Is there anything wrong with the idea that resource depletion causes recessions? [closed]

Just wondered if anyone has considered this. And any problems with the idea. Such as another theory.
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Constant Returns in a Production Function $\frac{Y}{L}=\left(\frac{K}{L}\right)^{\alpha}\left(\frac{R}{L}\right)^{\beta}$ ($R$ = Resource)

In his 1977 article (from which has developed a considerable literature on the Hartwick Rule for maintaining long-term constant consumption given depletion of non-renewable natural resources), ...
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1answer
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Extraction and royalty time path for a non-renewable resource under a monopolist assumption

I am trying to understand the time path of extraction and royalty (price) for a non-renewable resource under a monopolist framework. The problem is that in the main books on environmental/resource ...
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3answers
644 views

Interpretation of the growth rate of consumption in a simple one-good model

In Perman et al. "The efficient and optimal use of natural resources" it is presented a simple single-good model of welfare dynamic optimisation with non-renewable natural resource where: Obj: $$ max ...
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If Y=K+C, why the value of a marginal unit of capital is the same of the value of a marginal unit of output?

In a simple model of welfare dynamic optimisation with non-renewable natural resource where: $$ \dot S_t = -R_t $$ $$ \dot K_t = Q(K_t,R_t)-C_t $$ one of the first order condition is that $P_t=\...
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How helpful is Hotelling's Rule in determining the price of oil?

After posting this question, I realized that there was quite a bit of controversy surrounding the use of Hotelling's Rule to estimate the price of oil. Participants on this site seemed to be evenly ...
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Definition: Extractive Goods (Comtrades HS-Categorization)

I'm currently writing a paper on China in Africa and I'd like to compare Africas Exports to China with its exports to Europe and the USA. More specifically I'd like to find out if the Exports to China ...
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Is Malthusian theory of population growth being realized?

You probably are familiar with Malthus' Theory of Population Growth. If you are not, Malthusian model has the following mathematically form: $$P(t) = P_0e^{rt}$$ A basic graphic representation is: ...
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Australia and Saudi Arabia - Structural Similarities

I refer specifically to this article in which Andrew Critchlow paints a pretty dire view of the Australian economy. The line which challenged my priors was: ...
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What oil price will minimise new resource extraction?

A higher oil price would increase incentives to develop new oil resource extraction, but it also increases the competitiveness of sustainable energy sources. Conversely, a low oil price might mean ...
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What is the reasoning behind the sharp fall of oil prices starting in mid 2014?

Things I have considered: Poor economic conditions around the world could have caused an unpredicted decrease in demand. The resulting surplus has begun driving prices down. This could be ...
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Oil as a function of GDP

In Mankiw, N. (2012). Principles of Macroeconomics (6th ed.)., on pg 456 Mankiw says "The amount of oil used to produce a unit of real GDP has declined about 40 percent since the OPEC shocks of the ...
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How successful will OPEC's predatory dumping strategy be?

Since the fracking industry in the US has started to grow rapidly, I have heard increasing reports that OPEC is attempting some form of predatory dumping in the hopes of making the fracking industry ...
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What is the impact of fracking on oil prices?

I read an article about the recent fall of gas prices in the US claiming that the fall in gas prices was due to the expansion of fracking within the US. The article said that, over the past few ...