Showing papers on "Non-renewable resource published in 2010"
TL;DR: The authors consider seven aspects of commodity wealth, each of interest in its own right, but each also a channel that some have suggested could lead to sub-standard economic performance: long-term trends in world commodity prices, volatility, permanent crowding out of manufacturing, poor institutions, unsustainability, war, and cyclical Dutch Disease.
Abstract: It is striking how often countries with oil or other natural resource wealth have failed to grow more rapidly than those without. This is the phenomenon known as the Natural Resource Curse. The principle is not confined to individual anecdotes or case studies, but has been borne out in some econometric tests of the determinants of economic performance across a comprehensive sample of countries. This paper considers seven aspects of commodity wealth, each of interest in its own right, but each also a channel that some have suggested could lead to sub-standard economic performance. They are: long-term trends in world commodity prices, volatility, permanent crowding out of manufacturing, poor institutions, unsustainability, war, and cyclical Dutch Disease. Skeptics have questioned the Natural Resource Curse, pointing to examples of commodityexporting countries that have done well and arguing that resource exports and booms are not exogenous. Clearly the relevant policy question for a country with natural resources is how to make the best of them. The paper concludes with a consideration of ideas for institutions that could help a country that is endowed with, for example, oil overcome the pitfalls of the Curse and achieve good economic performance. The most promising ideas include indexation of oil contracts, hedging of export proceeds, denomination of debt in terms of oil, Chilestyle fiscal rules, a monetary target that emphasizes product prices, transparent commodity funds, and lump-sum distribution.
509 citations
TL;DR: The Green Paradox as discussed by the authors states that, in the absence of a tax on CO2 emissions, subsidizing a renewable backstop such as solar or wind energy brings forward the date at which fossil fuels become exhausted and consequently global warming is aggravated.
Abstract: The Green Paradox states that, in the absence of a tax on CO2 emissions, subsidizing a renewable backstop such as solar or wind energy brings forward the date at which fossil fuels become exhausted and consequently global warming is aggravated. We shed light on this issue by solving a model of depletion of non-renewable fossil fuels followed by a switch to a renewable backstop, paying attention to timing of the switch and the amount of fossil fuels remaining unexploited. We show that the Green Paradox occurs for relatively expensive but clean backstops (such as solar or wind), but does not occur if the backstop is sufficiently cheap relative to marginal global warming damages (e.g., nuclear energy) as then it is attractive to leave fossil fuels unexploited and thus limit CO2 emissions. We show that, without a CO2 tax, subsidizing the backstop might enhance welfare. If the backstop is relatively dirty and cheap (e.g., coal), there might be a period with simultaneous use of the non-renewable and renewable fuels. If the backstop is very dirty compared to oil or gas (e.g., tar sands), there is no simultaneous use. The optimum policy requires an initially rising CO2 tax followed by a gradually declining CO2 tax once the dirty backstop has been introduced. We also discuss the potential for limit pricing when the non-renewable resource is owned by a monopolist.
282 citations
TL;DR: In this paper, the authors present reasons for why these predictions can vary in the direction as well as the magnitude of their effects, and evaluate circumstances under which higher standards can decrease both certificate prices and renewable energy supply.
Abstract: Some studies of renewable portfolio standards find that regulations increase electricity generation costs; others find that the reduced demand for nonrenewable energy sources lowers natural gas prices and that electricity prices follow. This paper presents reasons for why these predictions can vary in the direction as well as the magnitude of their effects. The two driving factors are the elasticity of electricity supply from renewable energy sources relative to nonrenewable ones and the effective stringency of the target. The availability of other baseload generation helps to determine that stringency, and demand elasticity influences only the magnitude of the price effects, not the direction of those effects. The paper also evaluates circumstances under which higher standards can decrease both certificate prices and renewable energy supply. Sensitivity analysis indicates that assumptions about renewable energy supply slopes are more important than those about nonrenewable supplies in predicting the retail price impacts of renewable portfolio standards.
186 citations
TL;DR: In this article, a unified evaluation integrating various forms of energy sources and natural resources, products and services, and imports and exports is carried out systematically at the national scale for the booming Chinese economy 1978-2005, based on the ecological measure of solar emergy.
147 citations
TL;DR: In this article, the authors propose a methodology that integrates a growth model with an input-output model to analyze the impacts of economic growth on the consumption of energy, which is carried out by calibrating the growth module, which incorporates energetic inputs (renewable and nonrenewables) in the production function, and implementing shocks by the supply side (capital, labor, renewable and non-renewably energy) in input output model.
112 citations
Posted Content•
01 Jan 2010TL;DR: In this article, the authors examine how the large-scale expansion of intermittent resources of generation could influence long-run equilibrium prices and investment decisions under differing wholesale power market designs, and find that as the level of wind penetration increases, the equilibrium investment mix of other resources shifts towards less baseload and more peaking capacity.
Abstract: Over the last several years, there has been a nation-wide intensification of policies directed at increasing the level of renewable sources of electricity. These environmental policy changes have occurred against a backdrop of shifting economic regulation in power markets that has fundamentally redefined the mechanisms through which investors in power plants earn revenues. Rather than base payments upon costs, revenues in many regions are now based upon fluctuating energy prices and, in some cases, supplemental payments for installed capacity. This paper studies the interaction between these two major forces that are currently dominating the economic landscape of the electricity industry. Using data from the western U.S., we examine how the large-scale expansion of intermittent resources of generation could influence long-run equilibrium prices and investment decisions under differing wholesale power market designs. We find that as the level of wind penetration increases, the equilibrium investment mix of other resources shifts towards less baseload and more peaking capacity. As wind penetration increases, an “average” wind producer earns increasingly more revenue under markets with capacity payments than those that base compensation on energy revenues.
76 citations
04 Feb 2010
TL;DR: In this article, the authors show that recycling in itself is inefficient to perform the necessary "decoupling" of economic development and the depletion of non-renewable raw materials, and that once the fundamental decoupling is performed by other means, so that the growth of total consumption of raw materials is reduced below 1% per year, recycling becomes indispensable if the rate of effectiveness is very high globally.
Abstract: Since the 1990s, recycling of waste has become a core element of sustainable development. However, in this article, analysis of the flow modelling shows that recycling in itself is inefficient to perform the necessary "decoupling" of economic development and the depletion of non-renewable raw materials. The depletion of the natural resource of raw material is inevitable when its global consumption by the economy grows by more than 1% per annum. Recycling can delay for some years or decades at best. Decoupling the economy and its material needs must be understood as a double decoupling, the two components of which being inoperative if they are implemented separately. Only the combination of the two makes a significant impact on the problem of resources: (i) A fundamental decoupling, namely to restrain the growth of total consumption of raw material (virgin or recycled) (ii) A relative decoupling to reduce, through recycling and reuse, the share of primary resources (virgin) in the total production of raw material. In this perspective, the actual role of recycling to protect the resources is not significant for non-renewable materials which consumption tends to grow more than 1% per year. Conversely, once the fundamental decoupling is performed by other means, so that the growth of total consumption of raw materials is reduced below 1% per year, recycling becomes indispensable if the rate of effectiveness is very high globally. Only recycling rates above 80% allow a significant slowdown of the depletion of natural resources. In conclusion, sustainable development policies can not rely primarily on recycling, even though it is an important component. These policies should primarily aim at reducing the consumption of each non renewable raw material so that the annual growth rate remains under 1%. And in any case, to be efficient as the indispensable second part of these policies, recycling should be developed to much higher rates than the ones observed for most recycled materials in the world today.
58 citations
TL;DR: In this paper, the authors outline a path to sustainable development that would give future generations the chance to be as well-off as their predecessors without running out of natural resources, especially metals.
Abstract: We outline a path to sustainable development that would give future generations the chance to be as well-off as their predecessors without running out of natural resources, especially metals. To this end, we have to consider three key resources: (1) the geosphere or primary resources, (2) the technosphere or secondary resources, which can be recycled and (3) human ingenuity and creativity. We have two resource extremes: natural resources which are completely consumed (fossil fuels) versus natural resources (metals) which are wholly recyclable and can be used again. Metals survive use and are merely transferred from the geosphere to the technosphere. There will, however, always be a need for contributions from the geosphere to offset inevitable metal losses in the technosphere. But we do have a choice. We do not need raw materials as such, only the intrinsic property of a material that enables it to fulfil a function. At the time when consumption starts to level off, chances improve of obtaining most of the material for our industrial requirements from the technosphere. Then a favorable supply equilibrium can emerge. Essential conditions for taking advantage of this opportunity: affordable energy and ingenuity to find new solutions for functions, to optimize processes and to minimize losses in the technosphere.
53 citations
TL;DR: In this paper, the authors extend the literature on the taxation of polluting exhaustible resources by taking international heterogeneities and national tax-setting into account, and propose a two-country Romer model of endogenous growth in which the South is endowed with the stock of an essential polluting non-renewable resource and world economic growth is driven by a northern research sector.
Abstract: This paper extends the literature on the taxation of polluting exhaustible resources by taking international heterogeneities and national tax-setting into account. We propose a two-country Romer model of endogenous growth in which the South is endowed with the stock of an essential polluting non-renewable resource and world economic growth is driven by a northern research sector. We consider the stock of pollution as affecting global welfare. First, we characterize the optimal environmental taxation policies. Second, we examine the impacts of national taxes. Their time profile determines the extraction path, the dynamics of pollution accumulation and that of world output. Their respective levels entail inter-country interactions by altering the efficiency of the world resource allocation, the tax revenues and the resource rents. We study isolatedly the distortional and distributional effects of local taxes. Then, we completely assess the overall impact of a unilateral tax increase. Finally, we find that, even if heterogeneous countries coordinate their taxation policies to correct the global environmental problem, their divergent strategic interests cause another global, non-environmental distortion in the allocation of the resource.
47 citations
TL;DR: In this paper, the authors review the existing literature in the economics of forestry, fishery, water, and nonrenewable resources, and illustrate the real options approach in resource economics through a series of simple models.
Abstract: In the real options approach to capital budgeting, plans that allow for flexibility in the design or timing of an investment or economic action are valuable. Real options naturally arise in decisions to develop, extract, or harvest natural resources. We (a) review the existing literature in the economics of forestry, fishery, water, and nonrenewable resources; (b) illustrate the real options approach in resource economics through a series of simple models; and (c) suggest open questions and new areas of application when taking a real options approach to the development and management of natural resources.
30 citations
TL;DR: In this article, the authors focused on livestock production and processing, which often have been associated with negative environmental effects and established the fact that different policies are required to alleviate the negative and enhance the positive impact of livestock on the environment and thereby contribute to the sustainable use of the natural resource base.
Abstract: The association between human beings and animals dates back to prehistoric times. Livestock keeping is a century old tradition for Indian rural households. Animal agriculture is one of the most important components of global agriculture and livestock is one of the main users of the natural resource. It provides livelihoods to about 1.3 billion people and contributes about 40 percent to global agricultural output. Despite of environmental balance and positive contribution of livestock, the massive appetite of the growing urban population for meat, milk and eggs often translates into environmental damage and disruption of traditional mixed farming. Apart from population and poverty, poor integration of livestock has added to the environmental degradation. In this changing economy it has become necessary to consider how to satisfy ever increasing demand for high value animal protein without destroying the environment caused by the massive pressure on animal production. With good management, livestock production can make a positive contribution to the natural resource base by enhancing soil quality, increasing plant and animal biodiversity and substituting for scarce, nonrenewable resources such as fossil fuels. This article focuses on livestock production and processing, which often have been associated with negative environmental effects. The article also establish the fact that different policies are required to alleviate the negative and enhance the positive impact of livestock on the environment and thereby contribute to the sustainable use of the natural resource base. Thus the challenge is to identify policies and technologies which mitigate any negative environmental impact but which, at the same time, satisfy the considerable demand for livestock products.
TL;DR: In this article, the authors analyzed the long-term dynamics of an economy in which sectors are hetero- geneous with respect to the intensity of natural resource use and showed that heterogeneity induces technical change to be biased towards resource-intensive sectors.
Abstract: We analyze the long-term dynamics of an economy in which sectors are hetero- geneous with respect to the intensity of natural resource use. It is shown that heterogeneity induces technical change to be biased towards resource-intensive sectors. Along the bal- anced growth path, the sectoral structure of the economy is constant as the higher resource dependency in resource-intensive sectors is compensated by enhanced research activities. Resource taxes have no impact on dynamics except when the tax rate varies over time. Re- search subsidies and the sectoral provision of productivity-enhancing public goods raise growth and provide an effective tool for structural policy. JEL classification: O4, O41, Q01, Q3
TL;DR: A summary is provided of the early history of research on the flow of nonrenewable energy resources through the economy and of theflow of renewableenergy resources through a natural ecosystem.
Abstract: A summary is provided of the early history of research on the flow of nonrenewable energy resources through the economy and of the flow of renewable energy resources through a natural ecosystem. The techniques are similar, and many specific applications are provided. A combined economic and ecological technique is also defined. The early history and people of the International Society Ecological Economic are cited.
Book•
15 Jan 2010
TL;DR: The Foundations of Society and the Origins of Resources: Earth Resources Through History as discussed by the authors, Earth Resources through History 4. Environmental Impacts of Resource Exploitation and Use 5. Energy From Fossil Fuels 6. Nuclear and Renewable Energy Sources 7. Abundant Metals 8. The Geochemically Scarce Metals 9. Fertilizer and Chemical Minerals 10. Building Materials and Other Industrial Minerals 11. Soil as a Resource 12. Water Resources 13.
Abstract: 1. Minerals: The Foundations of Society 2. Plate Tectonics and the Origins of Resources 3. Earth Resources Through History 4. Environmental Impacts of Resource Exploitation and Use 5. Energy From Fossil Fuels 6. Nuclear and Renewable Energy Sources 7. Abundant Metals 8. The Geochemically Scarce Metals 9. Fertilizer and Chemical Minerals 10. Building Materials and Other Industrial Minerals 11. Soil as a Resource 12. Water Resources 13. Future Resources
TL;DR: In this article, the authors studied the optimal growth of a developing non-renewable natural resource producer, which extracts the resource from its soil and produces a single consumption good with man-made capital.
01 Jan 2010
TL;DR: In this paper, the authors compare the effects of five policy options: accelerating cost reductions in the clean backstop, taxing emissions, improving energy efficiency, mandating a blend of fossil and clean fuels, and mandating carbon capture and sequestration (CCS).
Abstract: Stabilizing greenhouse gas concentrations requires limiting cumulative emissions over the next century. Yet efforts to do so may be offset by emissions leakage, not only between countries but over time. Current price-cost margins for some of the world’s largest reserves are considerable, so there is ample scope for price reductions if clean substitutes become cheap enough to threaten to lure consumers away from fossil fuels. Furthermore, a faster transition to clean energy may accelerate emissions. We contribute to the “green paradox” literature by comparing the effects of five policy options: accelerating cost reductions in the clean backstop, taxing emissions, improving energy efficiency, mandating a blend of fossil and clean fuels, and mandating carbon capture and sequestration (CCS). We examine these alternative policies in a model where reserves differ in extraction costs. In a stylized two-pool model used to motivate our analysis, we identify four “regions” that may be reached with increasingly stringent policies: full exhaustion, partial exhaustion of the high cost resource, full exhaustion of the low-cost pool with the high-cost pool untouched, and incomplete exhaustion of the low-cost pool. Our study reinforces earlier findings that accelerating cost reductions in a clean backstop technology tends also to accelerate extraction of nonrenewable resources; however, when pools differ in their extraction costs, earlier transition to a backstop can also reduce cumulative emissions. An emissions tax, on the other hand, slows emissions; however, it may also accelerate arrival of the backstop if cumulative extraction is reduced. Meanwhile, energy efficiency improvements and the blend mandate tend to delay emissions and the adoption of the backstop technolog. While all policies considered can reduce cumulative emissions under the right circumstances, only the CCS mandate does it in all circumstances. We extend and parameterize the model to simulate extraction paths for five major categories of oil.
Posted Content•
TL;DR: The Green Paradox as mentioned in this paper states that, in the absence of a tax on CO2 emissions, subsidizing a renewable backstop such as solar or wind energy brings forward the date at which fossil fuels become exhausted and consequently global warming is aggravated.
Abstract: The Green Paradox states that, in the absence of a tax on CO2 emissions, subsidizing a renewable backstop such as solar or wind energy brings forward the date at which fossil fuels become exhausted and consequently global warming is aggravated. We shed light on this issue by solving a model of depletion of non-renewable fossil fuels followed by a switch to a renewable backstop, paying attention to timing of the switch and the amount of fossil fuels remaining unexploited. We show that the Green Paradox occurs for relatively expensive but clean backstops (such as solar or wind), but does not occur if the backstop is sufficiently cheap relative to marginal global warming damages (e.g., nuclear energy) as then it is attractive to leave fossil fuels unexploited and thus limit CO2 emissions. We show that, without a CO2 tax, subsidizing the backstop might enhance welfare. If the backstop is relatively dirty and cheap (e.g., coal), there might be a period with simultaneous use of the non-renewable and renewable fuels. If the backstop is very dirty compared to oil or gas (e.g., tar sands), there is no simultaneous use. The optimum policy requires an initially rising CO2 tax followed by a gradually declining CO2 tax once the dirty backstop has been introduced. We also discuss the potential for limit pricing when the non-renewable resource is owned by a monopolist.
01 Jul 2010
TL;DR: In this article, the authors investigated options for reducing energy inputs into selected examples of Australian grain farms and discussed the trade-offs between energy use and production, and concluded that strategies to implement energy efficiency improvements into grain farming and improve the sustainability of agricultural production systems are effective but usually incur some production penalties.
Abstract: Background: The use of grain for food and biofuels is of high international interest amid rising fossil energy costs, energy security and climate change. Energy efficiency must be improved in high-input agriculture in order to provide net benefits from biofuels. Results: Options for reducing energy inputs into selected examples of Australian grain farms were investigated. Nitrogen fertilizer and diesel accounted for the bulk of nonrenewable energy use (over 73%) and targeted options for reducing their consumption can save from 25 to over 70% in energy use. Conclusion: Strategies to implement energy efficiency improvements into grain farming and improve the sustainability of agricultural production systems are effective but usually incur some production penalties. The trade-offs between energy use and production are discussed.
TL;DR: In this paper, the authors reviewed the present state of energy demand and production in the Middle East and the world and their role in providing energy demand for the world as well as the economy of the region.
Abstract: In this presentation, we review the present state of energy demand and production in the Middle East and the world. Oil and gas reserves in the ME/NA region and their role in providing energy demand for the world as well as the economy of the region are examined. The future of oil and gas reserves in the region and how long they will last along with existing coal reserves are reviewed. Several scenarios for the energy demand of the world by 2050 and the role of renewable sources of energy are also reviewed. The impacts of quality of crude oil and its products on the environment and changing fuel standards in the developed countries and their effects on the market and industry are reviewed. What factors affect the price of oil and gas in the future? What would be economical use of oil and gas resources and options for the industry? These issues and more are discussed in this paper. [Received: January 18, 2010; Accepted: March 31, 2010]
TL;DR: The optimal control model assumes a monopolistic resource owner who maximizes intertemporal profits from exploiting the resource where the price of the resource depends on the extraction rate, the known stock of theresource, and the cumulated past extraction.
Posted Content•
TL;DR: In this paper, the authors present some natural resources dynamic models in order to extract the optimal trajectories of the state and control variables for the optimal control economic problem, and show how methods of infinite horizon optimal control theory developed for natural resources models.
Abstract: Dynamic modeling is general and recently the most interesting perspective to solve a dynamic economic problem based on Pontryagin’s maximum principle. Moreover traditional economic theory, up to the middle of twentieth century, builds up the production functions regardless the inputs’ scarcity. Nowadays it is clear that both the inputs are depletable quantities and a lot of constraints are imposed in their usage in order to ensure economic sustainability. For example the input “oil” used in the production is a non renewable resource so it can be exhausted. In a same way every biomass resides in ecosystems is a resource that can be used in a generalized production function for capital accumulation purposes but the latter resource is a renewable one. The purpose of this paper is the presentation of some natural resources dynamic models in order to extract the optimal trajectories of the state and control variables for the optimal control economic problem. We show how methods of infinite horizon optimal control theory developed for natural resources models.
01 Jan 2010
TL;DR: In this paper, the authors present the pressure on material developers to improve the sustainability performance of the products that they are developing is increasing since the demand for more sustainable products is growing.
Abstract: Since the demand for more sustainable products is growing, the pressure on material developers to improve the sustainability performance of the products that they are developing is increasing. As a ...
TL;DR: A probabilistic theoretical approach based on market expectations reflected in prices of publicly traded securities to estimate the time horizon until the appearance of new technologies related to replacement of nonrenewable resources, for example, crude oil and oil products is established.
Abstract: Setting sustainability targets and evaluating systems progress are of great importance nowadays due to threats to the human society, to economic development and to ecosystems, posed by unsustainable human activities. This research establishes a probabilistic theoretical approach based on market expectations reflected in prices of publicly traded securities to estimate the time horizon until the appearance of new technologies related to replacement of nonrenewable resources, for example, crude oil and oil products. To assess time T when technological innovations are likely to appear, we apply advanced pricing equations, based on a stochastic discount factor to those traded securities whose future cash flows critically depend on appearance of such innovations. In a simple approximation of the proposed approach applied to replacement of crude oil and oil products, we obtain T ≈ (P(0)(oil)/C(0))·ln (Δ·P(0)(oil)/P(0)(alt)), where P(0)(oil) and P(0)(alt) are the current aggregate market capitalizations of oil and alternative-energy companies, C(0) is the annual aggregate dividends that oil companies pay to their shareholders at the present, and Δ is the fraction of the oil (oil products) replaced at time T. This formula gives T ≈ 131 years for replacement of gasoline and diesel. The proposed market-expectations approach may allow policymakers to effectively develop policies and plan for long-term changes.
01 Jan 2010
TL;DR: This paper considers single machine scheduling problems with a non-renewable resource and presents some properties of feasible schedules for several problems of this type with standard objective functions.
Abstract: In this paper, we consider single machine scheduling problems with a non-renewable resource. This type of problems has not been intensively investigated in the literature so far. For several problems of this type with standard objective functions (namely the minimization of makespan, total tardiness, number of tardy jobs, total completion time and maximum lateness), we present some complexity results. Particular attention is given to the problem of minimizing total tardiness. In addition, for the so-called budget scheduling problem with minimizing the makespan, we present some properties of feasible schedules.
16 Mar 2010
TL;DR: In this paper, a new process called ecourbanistica (Ecotownplanning) is described, starting from the systemic approach to the city, which is able to indicate the real actions necessary within the city.
Abstract: A social conscience about what is going on in relation to climate changes, global warning, urban pollution, water emergencies, the municipal solid waste problem and, in general, future urban scenarios seem to be quite widespread in large segments of the population. The city, where in a few years about 75% of the world’s population will settle, represents one of the main entropic systems, in particular because of the location of climate-altering and pollutant activities. This awareness has generated an ethic change, a radical transformation of the methods of action and interaction between man and the environment and between citizens and the urban environment. The attention to sustainable urban development, participated urban planning, the consideration of territory as a non renewable resource, sustainable mobility and so on has also been characterizing the investigation in the field of urban and regional sciences. Moving from these assumptions it is now necessary to codify a new process of sustainable town planning that is able to indicate the real actions necessary within the city. This paper intends to describe this new process, called Ecourbanistica (Ecotownplanning), starting from the systemic approach to the city.
Posted Content•
TL;DR: In this paper, the authors evaluate the sustainability of the main energy sources in Egypt and evaluate the effectiveness of government policies in a broader sustainability framework, the resource rent as a measure of sustainability is conducted for oil and gas.
Abstract: This paper evaluates the sustainability of the main energy sources in Egypt. In its attempt to reach this evaluation, the paper reviews Egypt’s energy map highlighting the features of the energy sector in the Egyptian economy in general and petroleum sector in particular. To assess the effectiveness of government policies in a broader sustainability framework, the resource rent as a measure of sustainability is conducted for oil and gas. The paper estimates the current value of oil and natural gas reserves, predicts the future revenues from consuming these non-renewable resources, and calculates the net present value of Egypt’s wealth from such natural resources. These calculations are being applied under different scenarios, where different relative future prices movements and extraction rates for both oil and natural gas are considered.
Posted Content•
TL;DR: In this paper, the authors present some natural resources dynamic models in order to extract the optimal trajectories of the state and control variables for the optimal control economic problem, and show how methods of infinite horizon optimal control theory developed for natural resources models.
Abstract: Dynamic modeling is general and recently the most interesting perspective to solve a dynamic economic problem based on Pontryagin’s maximum principle. Moreover traditional economic theory, up to the middle of twentieth century, builds up the production functions regardless the inputs’ scarcity. Nowadays it is clear that both the inputs are depletable quantities and a lot of constraints are imposed in their usage in order to ensure economic sustainability. For example the input “oil” used in the production is a non renewable resource so it can be exhausted. In a same way every biomass resides in ecosystems is a resource that can be used in a generalized production function for capital accumulation purposes but the latter resource is a renewable one. The purpose of this paper is the presentation of some natural resources dynamic models in order to extract the optimal trajectories of the state and control variables for the optimal control economic problem. We show how methods of infinite horizon optimal control theory developed for natural resources models.
Journal Article•
TL;DR: The adage reduce, reuse, recycle is commonly recited today by adults and children alike as discussed by the authors, and the majority of people are also aware of the impact that non-renewable energy is having on the environment.
Abstract: Most of the people have an idea of what renewable energy sources are and what they can offer us. The majority of people are also very aware of the impact that non-renewable energy is having on the environment. The adage reduce, reuse, recycle is commonly recited today by adults and children alike. We have started to see an increase in the reduction of waste and consumption of energy and the recycling and reuse of products we use. It is time to see an increase, however, in the use of renewable energy.
15 Dec 2010
TL;DR: In this paper, the authors argue for the progressive taxation of national income of each country on the ground that there is no compelling argument for us to accept initial acquisition of property in the state of nature as just without giving due consideration to the rights of later generations and that each person has an equal right to natural resources.
Abstract: The question of whether there are global duties of distributive justice find an affirmative answer from those political philosophers who may be called “global egalitarians.” One striking feature of global egalitarians is that they tend to refuse the moral significance of boundaries and lay stress on the arbitrariness of the distribution of natural resources on the earth. The idea of arbitrary distribution of natural resources also constitutes the basis for Thomas Pogge’s proposal of a global resource tax for redistribution of wealth and resources. He maintains that each nation should pay a proportional tax on the natural resources such as oil, coal, etc. it extracts from the earth—he also holds that the same tax might cover reuseable resources like agricultural land, water and so on, that is, basic needs of the global poor can be met by funds obtained through global resources tax for him. But Pogge’s proposal faces serious difficulties as it is biased against natural resource-wise rich countries while exempting some rich countries from the tax burden just because they do not have significant natural resources. In addition, imposing a tax on agricultural products of a developing country the well-being of whose economy heavily depends on the cultivation of agricultural products like tobacco, coffee and cocoa would very likely increase the number of the global poor, which is already high. Pogge’s global resource tax proposal is not only impractical but also unjust. By suggesting that the global resource tax should target the extraction of nonrenewable resources liable to run out within a short period of time, his proposal implies the protection of the interests of future globally worst-off at the expense of the present globally worst-off, whose survival depends on the extraction of non renewable resources. Moreover, on Pogge’s proposal, it is indeterminate whether the country would get back what it gave as a tax or to which countries among the poor the priority in a possible redistribution is to be given. Instead of global resource tax, I shall argue for the progressive taxation of national income of each country on the ground that there is no compelling argument for us to accept initial acquisition of property in the state of nature as just without giving due consideration to the rights of later generations and that each person has an equal right to natural resources.
TL;DR: The authors empirically test the Hotelling rule on the effect of unanticipated oil field discoveries and find evidence for a significant adjustment of the price of crude oil to news about greater resource availability and therefore conclude that the price for crude oil does not follow the theoretically optimal price path.
Abstract: The Hotelling rule argues that the price for a nonrenewable resource adjusts to the shadow value of the resource, reflecting the remaining availability of the resource. We empirically test the Hotelling rule on the effect of unanticipated oil field discoveries. We do not find evidence for a significant adjustment of the price of crude oil to news about greater resource availability and therefore conclude that the price for crude oil does not follow the theoretically optimal price path.