Unformatted text preview: h are inferior to fresh ones. with fine mesh nets) have future and externality costs with Technology controls. Some techniques (use of explosive, fishing Aquaculture and marine culture. Provide alternative sources of
fish, but have externality costs fish, P0 Non renewable resource prices Non Prices are indicators of scarcity Prices of non renewable resources decline when known Prices resources grow faster than use resources Prices of most non renewable resources has decline Higher interest rates lead to lower prices at present and Higher higher future prices (they increase present mining) Higher mining cost increases prices but reduces price Higher changes over time changes Optimal price of resource over time with zero extraction cost
Higher interest rate reduces initial price BUT Increased rate of price changes when stock is constant More mining under higher interest rates in earlier periods and less mining beyond t=t* less t=t Price Dynamics of Renewable Resources Price The rate of the price change is affected by: The discount rate tends to increase price over time. Rate of resource population growth tends to reduce price over time Rate (as supply increases) (as Extraction cost factor dampens the other two Extraction Demand growth increases prices New resource sources tend to reduce prices Prices of most renewable resources have decline over time...
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