Does productive capital affect the order of resource exploitation?

The purpose of this paper is to show that in a general equilibrium framework it is never optimal to use high cost substitute after lower cost exhaustible resource even if it is possible to accumulate productive capital. Indeed if the high cost substitute is scarce it is always optimal to consume it simultaneously with a lower cost stock. Moreover it may be optimal to consume the high cost substitute before using a lower cost resource.

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Year of publication:	2000
Authors:	Favard, Pascal
Publisher:	Milano : Fondazione Eni Enrico Mattei (FEEM)
Subject:	Ressourcenökonomik \| Erschöpfbare Ressourcen \| Produktsubstitution \| Theorie \| Natural resources \| substitute \| productive capital \| general equilibrium

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Series:	Nota di Lavoro ; 2. 2000
Type of publication:	Book / Working Paper
Type of publication (narrower categories):	Working Paper
Language:	English
Other identifiers:	hdl:10419/155056 [Handle]
Classification:	Q3 - Nonrenewable Resources and Conservation
Source:	EconStor

Persistent link: https://www.econbiz.de/10011608566