The increase of fuel extraction costs as well as of temperature will make it likely that in the medium-term future technological or political measures against global warming may be implemented. In assessments of a current climate policy the possibility of medium-term future developments like...

We consider the Hartwick rule for capital accumulation and resource depletion, provide semantic clarifications and investigate whether this rule indicates sustainability and requires substitutability between manmade and natural capital. In addition to shedding light on the meaning of the...

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...

Natural resources in sub-Saharan Africa suffer from a bad reputation. Oil and diamonds, particularly, have been blamed for a number of Africa's illnesses such as poverty, corruption, dictatorship and war. This paper outlines the different areas and transmission channels of how this so-called...

This study investigates the problem of exhaustible resources using a dynamic input-output model with classical features. Following past research on the topic, further reconciliation can be made between the analyses of Ricardo and Hotelling on exhaustible resources by introducing...

How should the world economy adapt to the increased demand for exhaustible resources from countries like China and India? To address that issue, this paper presents a dynamic model of the world economy with two technologies for production; a resource technology which uses an exhaustible resource...

Fossil fuels are non-renewable carbon resources, and the extraction path of these resources depends both on present and future demand. When this Hotelling feature is taken into consideration, the whole price path of carbon fuel will shift downwards as a response to the reduced cost of the...

A sufficiently rapidly rising carbon tax may increase near-term emissions compared with the case of no carbon tax. Even so, such a carbon tax path may reduce total costs related to climate change, since the tax may reduce total carbon extraction. A government cannot commit to a specific carbon...

Optimal climate policy is studied in a Ramsey growth model with exhaustible oil reserves, an infinitelyelastic supply of renewables, stock-dependent oil extraction costs and convex climate damages. Weconcentrate on economies with an initial capital stock below that of the steady state of the...

In this paper we study the problem of exhaustible resources and renewable resources in a theoretical endogenous growth framework, under various assumptions. In particular, we consider the hypotheses that those two inputs are or are not technologically perfect substitutes of each other. Moreover,...