I- NNP and Economic Depreciation of Natural Resource Stocks- II-The Nonrenewable Resources Exploring-Extracting Firm and the R% Rule.

If an exhaustible resource stock is viewed as a capital good, one obtains in the Hotelling model that economic depreciation of the stock equals aggregate rent. When extraction costs depend on the stock of resource remaining, depreciation is less than aggregate rent. These results permit us to estimate an extended "capital consumption allowance" for the U.S. economy and to obtain a new NNP value which incorporates the using up of exhaustible resources each year.

MoreLess

Year of publication:	1989
Authors:	Hartwick, John M.
Institutions:	Economics Department, Queen's University
Subject:	natural resources \| economic models \| prices

More details

Series:	Working Papers.
Type of publication:	Book / Working Paper
Notes:	30 pages
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005787846