Showing papers on "Non-renewable resource published in 2009"

Rent Taxation for Nonrenewable Resources

Abstract: The literature on taxation of rents from nonrenewable resources uses different theoretical assumptions and methods and a variety of empirical observations to arrive at widely diverging conclusions. Many studies use models and methods which disregard uncertainty, investigating distortionary effects of different taxes on whether, when, and how to explore for, develop and operate resource deposits. Introducing uncertainty into the analysis opens a range of challenges, and leads to results which cast doubt upon the relevance of studies which neglect uncertainty. There are, however, several ways to analyze uncertainty, regarding companies' behavior, resource price processes, and diversification opportunities, all with different implications for taxation. Methods developed in financial economics since the 1980's are promising, but still not in widespread use. Some more specific topics covered in this review are optimal risk sharing between companies and gov- ernments, time consistency and scal stability, the relationship between taxes and discount rates, and transfer pricing.

Assessing the Relationship between Oil Prices, Energy Consumption and Macroeconomic Performance in Malaysia: Co-integration and Vector Error Correction Model (VECM) Approach

Abstract: This paper investigates the long run relationship between oil price, energy consumption and macroeconomic performance in Malaysia. The sample period is from (1980-2005) and the time series are subjected to various shortcomings such as autocorrelation, multicollinearity problems and host of other problems; data were first tested for their residuals. The results reveal that there is an evidence for a stable long-run relationship between the oil price, employment, economic growth and growth rate of energy consumption and also substantial short run interactions among them. Also, this paper indicates that the changes of world oil prices also affect the total energy consumption in Malaysia but reverse does not hold in Malaysia context. The linkages and causal effects among the oil price, energy consumption and macroeconomic performance have important policy implications on the benefits of energy conservation and regulation of macroeconomic policy. Given the dominant effects of oil price on energy consumption, better response and right mechanism of energy conservation policies should exist to curb the non renewable energy use and to shift extensively to the inter fuel substitution towards indigenous resources, mainly renewable energy. The most important findings here indicated that the growth of energy used has significant impacts on employment growth and present energy conservation policy especially energy saving policy and energy efficiency initiatives has significant impact on economic growth in Malaysia.

Hotelling Revisited: Oil Prices and Endogenous Technological Progress

Abstract: This article examines the Hotelling model of optimal nonrenewable resource extraction in light of empirical evidence that petroleum and minerals prices have been trendless despite resource scarcity. In particular, we examine how endogenous technology-induced shifts in the cost function would have evolved over time if they were to maintain a constant market price for nonrenewable resources. We calibrate our model using empirical data on world oil, and find that, depending on the estimate of the initial stock of reserve, oil reserves will likely be depleted some time between the years 2040 and 2075.

Experimental study of using renewable energy in Yemen

Abstract: During the last decade, there has been an increased interest to develop renewable energy technologies that could contribute to ever-increasing energy needs. This paper proposes a new PV array-wind-diesel generator hybrid system model to determine the optimal configuration of power systems relevant to different regions in Yemen, Sana’a and Aden. Various renewable and nonrenewable energy sources, energy storage and their applicability in terms of cost and performance are discussed. The collected data for the wind, solar radiation and diesel price were obtained from Civil Aviation & Meteorology Authority in Yemen. The Sensitivity analysis was carried out using Homer program. The results show that wind-diesel-battery model is the most suitable solution for both regions in term of the economic performance.

Economic aspects of natural resource exploitation

Abstract: Low entropy accumulations of matter and energy are more economic for humans to exploit as natural resources. This accumulation of a resource takes place over time and the most concentrated resources, such as fossil fuels, are created over geological ages. As the most concentrated resources become depleted it may be possible for technology to enable the exploitation of less concentrated resources, such as low-grade metal ores or thinly populated fishing grounds. Analysis of the timescales necessary to create different types of natural resource reveals three distinct groups. Further consideration of economic characteristics of resources, including ownership and access, and rate of consumption relative to rate of supply confirms the grouping of resources into the three distinct groups. Rate of change of entropy as a resource is exploited is an indicator of its impact on the environment. Consideration of this again suggests three distinct groups of resources, and this paper identifies them as: continuous natu...

Rent Taxation for Nonrenewable Resources

Abstract: The literature on taxation of rents from nonrenewable resources uses different theoretical assumptions and methods and a variety of empirical observations to arrive at widely diverging conclusions. Many studies use models and methods that disregard uncertainty, investigating distortionary effects of different taxes on whether, when, and how to explore for, develop, and operate resource deposits. Introducing uncertainty into the analysis opens a range of challenges and leads to results that cast doubt on the relevance of studies that neglect uncertainty. There are, however, several ways to analyze uncertainty regarding companies' behavior, resource price processes, and diversification opportunities, all with different implications for taxation. Methods developed in financial economics since the 1980s, though promising, are still not in widespread use. Additional topics covered in this review are optimal risk sharing between companies and governments, time consistency and fiscal stability, the relationship ...

Energy exploitation, utilization, and its environmental effects – the choice to make and the decision to take

Abstract: Energy is the basis of industrial civilization; without energy, modern life would cease to exist. However, the exploitation, exploration, conversion, and use of energy comes with effects that impact on the environment in one way or another. The different types and sources of energy also have different impacts on the environment and, to varying degrees, depending on whether it is renewable or non-renewable energy type. In this article, the main focus is on the implications and responsibility of the choices we make and the decisions we take in relation to energy conversion and utilization. And judging by the threat the non-renewable energy poses to humans and the environment, it was recommended that the use of renewable energy should be increased and that alternative and sustainable ways to meet our demands should be sought.

Rent Taxation for Nonrenewable Resources

Abstract: The literature on taxation of rents from nonrenewable resources uses different theoretical assumptions and methods and a variety of empirical observations to arrive at widely diverging conclusions. Many studies use models and methods which disregard uncertainty, investigating distortionary effects of different taxes on whether, when, and how to explore for, develop and operate resource deposits. Introducing uncertainty into the analysis opens a range of challenges, and leads to results which cast doubt upon the relevance of studies which neglect uncertainty. There are, however, several ways to analyze uncertainty, regarding companies' behavior, resource price processes, and diversification opportunities, all with different implications for taxation. Methods developed in financial economics since the 1980's are promising, but still not in widespread use. Some more specific topics covered in this review are optimal risk sharing between companies and governments, time consistency and fiscal stability, the relationship between taxes and discount rates, and transfer pricing.

Taxation of Oil Products and GDP Dynamics of Oil-Rich Countries

Abstract: This article proposes a complementary explanation for why oil-rich economies have experienced a relative low GDP growth over the last decades: the proportion of taxes in the prices of petroleum products have been globally increasing in the last four decades, making oil revenues grow slower than output from manufacturing and yielding a low GDP growth for oil-exporting countries. This is illustrated in a two-country model of oil depletion which examines why a net oil-exporting country and a net oil-importing country are differently affected by increased taxes on resource use. The hypothesis is constructed on the theory of non-renewableresources taxation. The argument is based on the distributional effects of taxes on exhaustible resources, which are mainly borne by the suppliers. The theoretical predictions are not invalidated by available statistics.

Energy and the public's health: making the connection.

Abstract: Rarely does a scientific article come along that begs to be read by a much broader audience than the subscribers of a niche journal. Frumkin and colleagues have achieved such a feat in this issue of Public Health Reports. Their article, "Energy and Public Health: The Challenge of Peak Petroleum,"1 should be required reading for every public policy leader, business executive, health-care provider, and general public health professional. It makes a connection between an old world where the use of carbon-based energy was largely related to wood burn ing and simple crop production, and a current world that is growing closer to exhausting the fossil fuel stores created by many millions of years of geologic processes. Frankly, it's quite hard to imagine that we have largely cannibalized the "easily obtained carbon-hydrogen bound energy" that is as much a part of our planet earth's history as is evolution. But the depletion is happening, just as Frumkin and colleagues have detailed. And yet, petroleum is just one part of the nonrenewable energy resources that the global population is devouring with an ever-increasing appetite. Coal and natural gas are the other components of the historic photosynthesis-driven energy bank. Their use will impact both the rate of petroleum consumption over the next several decades and the speed at and extent to which the global climate-change-related greenhouse gases are increasing in our atmosphere. With the simultaneous occurrence of the exploding 21st-century human population and a rapidly growing part of the world evolving from low energy-consumption developing countries into high energy-consumption developed countries, car bon-based energy use will only accelerate over the next decade. Even under the best-case scenarios, clean renewable energy sources that can supply a substantial part of our energy budget are many years off. In the public health prepared ness business, we often say, "Earthquakes, hurricanes, tsunamis, and influenza pandemics occur?we must be prepared." Well, peak petroleum will too occur, and no amount of wishful thinking will change the implications of what this phenomenon will mean to our world as we know it now. Most of us do not understand the depth and complicated intricacies of the connection between

Method for generating non-renewable energy e.g. electricity, from fossil fuel, involves supplying available renewable energy to part of energy consumers, based on previously stored data representing time-planned energy-consuming operations

Abstract: The method involves estimating energy supply and energy demand in a preset future time period, based on time, date, weather and pre-stored data Available renewable energy is supplied to a part of energy consumers, based on previously stored data representing time-planned energy-consuming operations of the energy consumers The energy consumers are selected based on a preset criteria Renewable energy is allocated to the selected energy consumers Imported calendar data representing timing and type of planned energy-using operations is received An independent claim is also included for a system for non-renewable energy generation

Integrating human and natural systems sustainably: Emergy evaluation and visualization of the Abruzzo Region

Abstract: This paper presents an environmental accounting method, based on Odum’s systems theory. So-called emergy analysis (spelled with an M) was here applied for evaluating sustainability of the Abruzzo Region, a large area in the middle of Italy along east coast. This study attempts to answer questions concerning: globalization (strong competition among regional and national systems, outsourcing of productive activities), energy (growth of consumptions, cost and lack of resources), territorial disequilibrium (concentration of activities and environmental impacts) and use of resources (renewable and non renewable). The aim of this research is to study a territorial system and to verify potentiality and contribution that this environmental accounting technique provides to manage and to program the future development. In particular this study aims to understand the functioning of a region based on the analysis of stocks and flows of energy and matter inside the examined area, investigating their spatial distribution and their relationships with geo-morphological structure of territory. This study further evaluates the use of local resources and aims to understand the relationships among the different parts of a territorial systems, their level of autonomy in terms of resource use and their effective spatial boundaries, which usually do not correspond to the administrative limits. The study also attempts to present the evaluation in an easily comprehensible graphic manner as digital maps.

Sustainable Natural Resource Management: For Scientists and Engineers

Abstract: Natural resources support all human productivity. The sustainable management of natural resources is among the preeminent problems of the current century. Sustainability and the implied professional responsibility start here. This book uses applied mathematics familiar to undergraduate engineers and scientists to examine natural resource management and its role in framing sustainability. Renewable and nonrenewable resources are covered, along with living and sterile resources. Examples and applications are drawn from petroleum, fisheries, and water resources. Each chapter contains problems illustrating the material. Simple programs in commonly available packages (Excel, MATLAB) support the text. The material is a natural prelude to more advanced study in ecology, conservation, and population dynamics, as well as engineering and science. The mathematical description is kept within what an undergraduate student in the sciences or engineering would normally be expected to master for natural systems. The purpose is to allow students to confront natural resource problems early in their preparation.

Polluting Non-Renewable Resources, Carbon Abatement and Climate Policy in a Romer Growth Model

Abstract: We study how the availability of an abatement technology affects the optimal use of polluting exhaustible resources, and optimal climate policies. We develop a Romer endogenous growth model in which the accumulated stock of greenhouse gas emissions harms social welfare. Since the abatement technology allows reducing the effective pollution for each unit of resource use, extraction and pollution are partially disconnected. Abatement accelerates the optimal extraction pace, though it may foster CO2 emissions for the early generations. Moreover, it is detrimental to output growth. Next, we study the implementation of a unit tax on carbon emissions. Contrary to previous results of the literature, its level here matters, as it provides the right incentives to abatement effort. When it is measured internal good, the optimal (Pigovian) carbon tax is increasing over time, while it is constant when expressed in utility. Moreover, it can be interpreted ex-post as a decreasing ad-valorem tax on the resource. Finally, we study the impact of the climate policy on the decentralized equilibrium: in particular, it fosters both the intensity and the rate of carbon abatement. In the near-term, it spurs research and output growth, while decreasing output level.

Fourth and Fifth Grade Students Learn About Renewable and Nonrenewable Energy Through Inquiry

Abstract: A classroom of eighteen fourth and fifth graders in the Columbus, Ohio Public School system successfully evaluated how people obtain fossil fuels, how they are limited in nature, and how they can develop renewable energy solutions. Students modeled oil-drilling using: chocolate syrup, rice cereal, a baster, and a clear container. Chocolate oil became more difficult to pump as oil supplies diminished. While pumping, chocolate oil spills contaminated the drill hole and students excavated the polluted substrate. Students next learned more about oil spills by conducting their own clean-ups of vegetable oil in mini tap water oceans. Students learned that 'solving' the problem of the oil spill created new problems, including uninhabitable soapy oceans. This mimicked the failure of current technology to easily remediate oil spills. Finally to cultivate a better understanding of renewable energy, students built and tested solar ovens and discussed their benefits and limitations. After completing these activities, students showed a significant average improvement from their pretest to posttest understanding of renewable and nonrenewable resources. In addition, students were interested and excited to act on what they had learned. INTRODUCTION Humanity's consumption of fossil fuels threatens our future. We must act and we must teach our children not only to understand the limitations of fossil fuels, but to understand that achieving a future based on clean, renewable energy requires their involvement. Since the first Earth Day on April 22, 1970, human carbon emissions have increased from 3.9 million metric tons to an estimated 6.4 million (Meadows, 2000). Now, more than ever, increased demand for fossil fuels threatens global relations and global climate (NATO, 2004). Global dependence on oil is projected to last at least 20 more years and competition for this oil will increase significantly by 2030 with demand from Southeast Asia increasing exponentially (NATO, 2004). Both improved education and public policy are critical to the achievement of energy sustainability (Dincer, 2000). Using Inquiry to Understand Energy Challenges This study describes nonrenewable and renewable energy fourth and fifth lesson plans and educational outcomes. Lesson plans were developed and evaluated while participating in the National Science Foundation Graduate Teaching K-12 Program (NSF GK-12). NSF GK12 pairs Science, Technology, Engineering, and Mathematics (STEM) graduate students with K-12 teachers to develop and implement new science curricula (NSF, 2008). STEM graduates participating in NSF GK-12 gain confidence communicating scientific ideas while K-12 students and teachers gain interest in science (NSF, 2008). One class of eighteen fourth and fifth grade students (11 female; 7 male; 9 Euro-American; 6 African American; 2 Hispanic; 1 Asian) at an urban Columbus, Ohio Public school participated in this study. Permission to evaluate student learning was obtained from the school principal and teacher to evaluate the students as part of the NSF GK-12 Program. The primary goal of this study is to explain and evaluate fourth and fifth grade geoscience-based lessons addressing major energy challenges. Science educators are charged with the goal of conveying important energy concepts to students because they are central to our global politics and economics (Rule, 2005). Bennett and Heafner (2004) suggest that student development of environmental awareness must include, "inquiry, implementation, and reflection". Hands-on lesson plans with time for reflection enhance student critical thinking abilities and give them more freedom in their scientific investigations (Council, 2000). Each lesson included features inquiry-based explorations. The developed curriculum focuses on exploring three major energy challenges including: 1) understanding the limitation of fossil fuel reserves 2) learning the environmental costs of fossil fuel use and 3) understanding the benefits and limitations of renewable energy. …

The Hydrogen Economy: Non-renewable energy resources: fossil fuels – supply and future availability

Abstract: Today, the world's energy supply still depends to around 90% on non-renewable energy sources, which are largely dominated by fossil fuels As the global energy mix is widely expected to continue relying predominantly on fossil fuels in the coming decades, the question arises to what extent and how long fossil fuels will be able to sustain the supply The projected increase in global energy demand, particularly in the developing nations of Asia (such as China and India), as well as the economic and geopolitical implications of future shortcomings in the supply of oil and gas, are already creating serious concerns about the security of energy supply Especially, the transport sector, which is still almost entirely dependent on oil worldwide and would be most vulnerable to supply shortages, is increasingly triggering the search for alternative fuels The following chapter thus focuses primarily on the future availability of fossil fuels in the context of the development of global energy demand and sets the scene for the possible introduction of hydrogen Projections on the future development of global energy demand In the following, the past and future development of global energy demand and its composition will be briefly analysed The energy balance methodology for primary energy demand of oil, gas, coal and biomass is normally based on the calorific content of the energy commodities

Carbon taxation in india : an effective market-based approach for reducing carbon dioxide emissions

Abstract: The need for domestic Indian legal policy that addr esses the perils of climate change is increasingly apparent, in the light of the national environmental policy which aims at sustainable usage of natural resources and pollutio n prevention along with development. In the Indian environmental setting, one way to do thi s is to place a price on the negative externality like pollution through Carbon tax on th e production, distribution or use of fossil fuels and other non renewable resources based on th e carbon content of the fuel. The paper proposes levying of Carbon tax as a preferred marke t-based mechanism to counter the challenge of Global climate change, as compared to the cap-and-trade approach on various parameters such as overall cost effectiveness and p redictable long-term prices to name a few. The researchers shall analyze the feasibility of im plementing revenue neutral carbon taxation in the Indian context and consequently provide the modalities thereof, deriving assistance from the legal paradigm of the nations which have s uccessfully levied this tax like Canada, Sweden and Finland amongst others.

Renewable Resource Management with Alternative Sources: the Case of Multiple Aquifers and a "Backstop" Resource

Abstract: While renewable resource economics is typically confined to one source and one aggregate demand, resource managers must often decide how to manage multiple sources of a resource simultaneously. In addition, studies of extraction sequencing are typically confined to non-renewable resources. We propose a dynamic optimization model to determine the efficient allocation of groundwater when two coastal aquifers are available for exploitation. We find that Herfindahl’s least-cost-first result for nonrenewable resources does not necessarily apply to renewable resources, even when there is only one demand. Along the optimal trajectory extraction may switch from single to simultaneous use, depending on how the marginal opportunity cost of each resource evolves over time. A numerical simulation for the South Oahu aquifer system, which allows for differentiation of users by elevation and hence distribution costs, illustrates the switching behavior.

Taxation of Oil Products and GDP Dynamics of Oil-rich Countries

Abstract: This article proposes a complementary explanation for why oil-rich economies have experienced a relative low GDP growth over the last decades: the proportion of taxes in the prices of petroleum products have been globally increasing for the four last decades, thus making oil revenues grow slower than output from manufacturing and yielding a low growth of oil-exporting countries' GDPs. This is illustrated in a two-country model of oil depletion examining why a net oil-exporting country and a net oil-importing country are dierently affected by increasing taxes on the resource use. The hypothesis is constructed on the theory of non-renewable resources taxation. The argument is based on the distributional effects of taxes on exhaustible resources, that are mainly borne by the suppliers. The theoretical predictions are not invalidated when put up against available statistics.

Non-Renewable Resource Booms and the Poor

Abstract: There are frequent suggestions that economies that specialize in mineral and energy extraction generate a type of growth that fails to concurrently benefit the poor. The dynamic effects creating this outcome could include increasing income inequality associated with extraction-led growth or Dutch Disease effects that inhibit poverty-reducing manufacturing employment. Others claim that resource extraction promotes poverty alleviation. No one, however, has directly examined the dynamics of resource extraction and the poor. This paper uses longitudinal data on income growth by quintile in 57 countries to statistically assess how the level of non-renewable resource extraction and changes in the level of extraction affects the poor. Our results indicate that at the national level there is nothing about extractive activity that overturns the adage that economic growth is concurrently good for the poor. If anything, a resource boom improves the likelihood that a growth spell will benefit the poor.

On the Situation of Coal Resource Utilization and Its Formation Reason——From the Economic Perspective of Nonrenewable Resource

Abstract: Based on a thorough study of literature concerning economy of nonrenewable resource,this article constructs a realistic and simple pattern which can explain the situation of coal resource utilization and its formation reason in China.It believes that long-term traditional planned economic system and extensive economic development pattern lead to the scarcity of coal resource,low level of and inflexible interest rate and a closed economic environment.It also draws a relevant conclusion.

The Depletion of Non-renewable Resources for Non-sustainable Externalities as an Economic Development Policy***

Abstract: The significance of non-renewable resources in economic development is an on-going debate between optimists and pessimists, but what insights does it provide for contemporary societies who need to choose between alternative growth paths? This paper aims to explain the depletion of non-renewable resources within the concept of externalities in order to determine the range of externalities for future generations by broadening the analysis of economic growth to sustainable development. The extensive depletion of non-renewable resources, particularly oil, along with a higher level of consumption will have a significant impact on the economic development of future generations. Sooner or later economies will have to rely more and more on the input of renewable resources, but the timing of this transition depends on a clear definition of non -renewable and depletable resources. The costs of transforming an economy from one that depletes non-renewable resources to one that is in accordance with sustainable development are considered negative externalities for future generations. The main questions of this paper are “What is the impact of the depletion of non -renewable resources on sustainable economic development?” and “Under what conditions will current efforts of employing renewable resources state negative or positive externalities for future generations?” Fina lly, the research findings based on qualitative analysis clarifies the reasons and the extents of taking sustainability into account as well as points to difficulties of implementing strategies for a sustainable economic development.

Sustainability, resource substitution in energy inputs and learning

Abstract: We assess the impact of the existence of a costly energy substitute (like wind, solar) for a non-renewable resource (like oil, coal) on the sustainability of consumption. The prospects for sustainability depend crucially on the costs of this substitute. If one can reduce the costs of the resource substitute via learning-by-using then we find that still this does not guarantee sustainability. Also, the poorer a country the less it will take the learning-by-using effect into account and the more likely it will be unsustainable.

Colbún—Powering Chile

Abstract: This case is about Colbun, Chile's second largest electricity generator, which is facing significant uncertainty regarding the cost and availability of alternative energy sources Problems with the contracted supply of natural gas and the volatility of oil prices, coupled with regulatory changes made by the government, force Colbun to revise its business strategy and its sourcing mix New legislation will replace historically regulated electricity prices for certain customers with free market prices and therefore change the conditions under which the company must operate The case also deals with the pros and cons of various energy sources in view of their perceived environmental impact As the company's CEO, Bernardo Larrain Matte has to take all these different considerations into account when planning Colbun's future, especially in the light of new opportunities and challenges posed by global climate change The case analyzes the Chilean electricity sector and the operations of Colbun to illustrate the complexities associated with conducting business under the influence of global energy markets, government regulations, and environmental activism

Overview To Render Renewable Energy Sustainable InAfrica

Abstract: A comprehensive evaluation of the various sources of energy and their potential in meeting the energy needs of the people was done. Data on conventional energy generation and consumption was collated on a global scale to ascertain the future of conventional non renewable energy sources as it pertains to the issue of global energy crisis. The main focus is on assessing the potentials of renewable energy towards meeting the energy demands of nations. A detail evaluation of the different renewable energy sources was done; data on their extent of availability was collated to ascertain the degree of energy security which can be derived from renewable energy sources. Attempt was made in designing a renewable energy master plan, its objectives; short, medium and long term targets were critically analyzed coupled with the strategies, planned activities and mile stone in ensuring a sustainable energy future.