Lecture_13 - NR Econ Lecture 13 Module V. Nonrenewable...

Info iconThis preview shows pages 1–5. Sign up to view the full content.

View Full Document Right Arrow Icon
NR Econ Lecture 13 Module V. Nonrenewable Natural Resources and Alternative Energy Futures Today’s outline: Introduction to topic: economics of nonrenewable resources Hotelling Model: intertemporal depletion of a nonrenewable resource
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Introduction: Economics of Nonrenewable Resources Hotelling Model: intertemporal depletion of a nonrenewable resource “Time” as central to the analysis Intertemporal tradeoffs Use today or use in the future Choices today constrain choices in the future
Background image of page 2
Nonrenewable Resource Definition: A natural resource whose stock does not increase over time. Use of the resource reduces its stock. Also known as “exhaustible resource” Examples Fossil fuels (petroleum, natural gas, coal, tar sands) Non-energy minerals (copper, bauxite, tin, etc.) Groundwater (deep aquifers)
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Nonrenewable Resource (cont.) Economic issues Dynamic efficiency : how should the economy deplete a nonrenewable resource through time? Market equilibrium : will a competitive market in a nonrenewable resource be dynamically efficient? What happens to an economy when the stock of
Background image of page 4
Image of page 5
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 04/03/2008 for the course ECON 472 taught by Professor Moore during the Winter '08 term at University of Michigan.

Page1 / 20

Lecture_13 - NR Econ Lecture 13 Module V. Nonrenewable...

This preview shows document pages 1 - 5. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online