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Mineral Depletion and the Rules of Resource Dynamics

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  • Robert D. Cairns
  • Graham A. Davis

Abstract

Conditions of exploitation of natural resources under certainty and uncertainty in some canonical natural resource problems are unified as r-percent rules by which the sum of all sources of gain from refraining from an irreversible action is compared to the interest rate. Action is initiated once the gain from action equals the gain from inaction. Morris Adelman’s insights, succinctly presented his 1990 paper on mineral depletion, are highlighted as implicitly recognizing, and even being grounded by, these timing rules.

Suggested Citation

  • Robert D. Cairns & Graham A. Davis, 2015. "Mineral Depletion and the Rules of Resource Dynamics," The Energy Journal, , vol. 36(1_suppl), pages 159-178, June.
    • Handle: RePEc:sae:enejou:v:36:y:2015:i:1_suppl:p:159-178
    DOI: 10.5547/01956574.36.SI1.rcai
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    Cited by:

    1. Yang, Peifang & Davis, Graham A., 2018. "Non-renewable resource extraction under financial incentives to reduce and reverse stock pollution," Journal of Environmental Economics and Management, Elsevier, vol. 92(C), pages 282-299.
    2. Johnson Kakeu, 2023. "Concerns for Long-Run Risks and Natural Resource Policy," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 84(4), pages 1051-1093, April.

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    More about this item

    Keywords

    Adelman; r-percent rule; Non-renewable resources; Renewable; resources; Certainty; Uncertainty; Investment; Oil;
    All these keywords.

    JEL classification:

    • F0 - International Economics - - General

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