The Infinite Supply of Natural Resources Julian Simon 1. Introduction a. the finite earth will not satisfactorily accommodate more human being b. The world model is based on the fundamental assumption that there is all upper limit to the total amount of food that can be produced annually by the world's agricultural system 2. The Theory of Decreasing Natural Resources Scarcity a. The cause of the new discovering such as recycling, new materials, etc., or the cause of applying ideas that were discovered earlier is the shortage of the goods. Mans the increased cost of getting the good b. So a shortage causes the creation of its own remedy c. This has been the key process in the supply and use of natural resources throughout history d. The discovery of a substitute process or product can benefit innumerable future generations e. This benefit is an example of an externality, a result of a discovery that does not affect the producer directly f. Discoveries of improved methods and of substitute products are not just luck
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This note was uploaded on 11/29/2010 for the course IR 109 taught by Professor Heinz during the Spring '10 term at Rochester.