IDEAS home Printed from https://ideas.repec.org/a/bla/ecorec/v54y1978i1p72-77.html
   My bibliography  Save this article

Resource Use When Demand is Interdependent Over Time

Author

Listed:
  • R. MANNING

Abstract

Optimal consumption programmes are characterized for a naturally renewable, and a non‐renewable, resource when a parameter determining instantaneous utility depends on cumulated past consumption. Unlike conventional results, optimal consumption may increase over time. Conditions for this are given. For both types of resource it is shown that a free good is not necessarily consumed to the limit of availability, even though non‐satiation appears to hold. Each problem may be interpreted to be about the use of a poluting resource (like uranium), and it then reflects basic physical laws.

Suggested Citation

  • R. Manning, 1978. "Resource Use When Demand is Interdependent Over Time," The Economic Record, The Economic Society of Australia, vol. 54(1), pages 72-77, April.
    • Handle: RePEc:bla:ecorec:v:54:y:1978:i:1:p:72-77
    DOI: 10.1111/j.1475-4932.1978.tb00317.x
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/j.1475-4932.1978.tb00317.x
    Download Restriction: no
    File URL: https://libkey.io/10.1111/j.1475-4932.1978.tb00317.x?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Harold Hotelling, 1931. "The Economics of Exhaustible Resources," Journal of Political Economy, University of Chicago Press, vol. 39(2), pages 137-137.
    2. Vousden, Neil, 1973. "Basic theoretical issues of resource depletion," Journal of Economic Theory, Elsevier, vol. 6(2), pages 126-143, April.
    3. Long, Ngo Van, 1974. "The Theory of the Mining Firm and the Optimal Extraction of a Non-renewable Resource," Australian Economic Papers, Wiley Blackwell, vol. 13(23), pages 293-297, December.
    4. Keeler, Emmett & Spence, Michael & Zeckhauser, Richard, 1972. "The optimal control of pollution," Journal of Economic Theory, Elsevier, vol. 4(1), pages 19-34, February.
    5. Orris C. Herfindahl, 1955. "Some Fundamentals of Mineral Economics," Land Economics, University of Wisconsin Press, vol. 31(2), pages 131-138.
    6. Harl E. Ryder & Geoffrey M. Heal, 1973. "Optimal Growth with Intertemporally Dependent Preferences," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 40(1), pages 1-31.
    7. Pollak, Robert A, 1970. "Habit Formation and Dynamic Demand Functions," Journal of Political Economy, University of Chicago Press, vol. 78(4), pages 745-763, Part I Ju.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Daniel Leonard, 1990. "Richard Manning 1943–1989," The Economic Record, The Economic Society of Australia, vol. 66(2), pages 171-174, June.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Giuseppe Di Vita, 2004. "Natural Resources Dynamics: Another Look," Working Papers 2004.110, Fondazione Eni Enrico Mattei.
    2. Jose Apesteguia & Miguel Ballester, 2009. "A theory of reference-dependent behavior," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 40(3), pages 427-455, September.
    3. Hala Abu-Kalla & Ruslana Rachel Palatnik & Ofira Ayalon & Mordechai Shechter, 2020. "Hoard or Exploit? Intergenerational Allocation of Exhaustible Natural Resources," Energies, MDPI, vol. 13(24), pages 1-20, December.
    4. Mattauch, Linus & Hepburn, Cameron & Stern, Nicholas, 2018. "Pigou pushes preferences: decarbonisation and endogenous values," INET Oxford Working Papers 2018-16, Institute for New Economic Thinking at the Oxford Martin School, University of Oxford.
    5. Zongxia Liang & Xiaodong Luo & Fengyi Yuan, 2023. "Consumption-investment decisions with endogenous reference point and drawdown constraint," Mathematics and Financial Economics, Springer, volume 17, number 6, December.
    6. Brazee, Richard J. & Southgate, Douglas, 1993. "A Mathematical Model For Developing Ethno-Biologically Diverse Tropical Forests," Working Papers 11895, Environmental and Natural Resources Policy Training Project.
    7. Pavlo R. Blavatskyy, 2023. "Intertemporal choice with savoring of yesterday," Theory and Decision, Springer, vol. 94(3), pages 539-554, April.
    8. Matthey, Astrid, 2005. "Getting used to risks: Reference dependence and risk inclusion," SFB 649 Discussion Papers 2005-036, Humboldt University Berlin, Collaborative Research Center 649: Economic Risk.
    9. Nathaniel O. Keohane & Benjamin Van Roy & Richard J. Zeckhauser, 2000. "Controlling Stocks and Flows to Promote Quality: The Environment, With Applications to Physical and Human Capital," NBER Working Papers 7727, National Bureau of Economic Research, Inc.
    10. Beatriz Gaitan S. & Richard S.J. Tol & I. Hakan Yetkiner, 2006. "The Hotelling’s Rule Revisited in a Dynamic General Equilibrium Model," Papers of the Annual IUE-SUNY Cortland Conference in Economics, in: Oguz Esen & Ayla Ogus (ed.), Proceedings of the Conference on Human and Economic Resources, pages 213-238, Izmir University of Economics.
    11. Rubio, Santiago & Fisher, Anthony, 1994. "Optimal Capital Accumulation and Stock Pollution: The Greenhouse Effect," CUDARE Working Papers 198637, University of California, Berkeley, Department of Agricultural and Resource Economics.
    12. D. Dragone & D. Raggi, 2018. "Testing Rational Addiction: When Lifetime is Uncertain, One Lag is Enough," Working Papers wp1119, Dipartimento Scienze Economiche, Universita' di Bologna.
    13. van den Bijgaart, I.M., 2017. "Too slow a change? Deep habits, consumption shifts and transitory tax," Working Papers in Economics 701, University of Gothenburg, Department of Economics.
    14. Jacobs Martin, 2016. "Accounting for Changing Tastes: Approaches to Explaining Unstable Individual Preferences," Review of Economics, De Gruyter, vol. 67(2), pages 121-183, August.
    15. Robinson, James A. & Srinivasan, T.N., 1993. "Long-term consequences of population growth: Technological change, natural resources, and the environment," Handbook of Population and Family Economics, in: M. R. Rosenzweig & Stark, O. (ed.), Handbook of Population and Family Economics, edition 1, volume 1, chapter 21, pages 1175-1298, Elsevier.
    16. Abraham Garcia, 2011. "The relevance of marketing in the success of innovations," JRC Working Papers on Corporate R&D and Innovation 2011-09, Joint Research Centre.
    17. Verchère, Alban, 2011. "Le développement durable en question : analyses économiques autour d’un improbable compromis entre acceptions optimiste et pessimiste du rapport de l’Homme à la Nature," L'Actualité Economique, Société Canadienne de Science Economique, vol. 87(3), pages 337-403, septembre.
    18. Inge van den Bijgaart, 2018. "Too Slow a Change? Deep Habits, Consumption Shifts and Transitory Tax Policy," CESifo Working Paper Series 6958, CESifo.
    19. repec:hum:wpaper:sfb649dp2005-036 is not listed on IDEAS
    20. Rideout, Vincent C., 1981. "The modeling of socio-economic-resource systems," Mathematics and Computers in Simulation (MATCOM), Elsevier, vol. 23(2), pages 111-126.
    21. Bahman Angoshtari & Erhan Bayraktar & Virginia R. Young, 2021. "Optimal Investment and Consumption under a Habit-Formation Constraint," Papers 2102.03414, arXiv.org, revised Nov 2021.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:ecorec:v:54:y:1978:i:1:p:72-77. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://edirc.repec.org/data/esausea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.