There exists no formal treatment of non-renewable resource (NRR) supply, systematically deriving quantity as function of price. We establish instantaneous restricted (fixed reserves) and unrestricted NRR supply functions. The supply of a NRR at any date and location not only depends on the local...

This paper examines an industry whose economic activity uses a natural capital on which its profit also relies. When such a productive natural capital has a limited capacity to recover from its exploitation, a free market tends to over-exploit it, calling for public intervention. The analysis is...

Natural gas is hoped to effectively help shale gas producing regions meet their carbon emission reduction commitments. We examine an open economy that produces both gas and another, more carbon intensive fuel like coal. In presence of two carbon energy sources, the analysis sharply contrasts...