Increasing resource scarcity: further evidence

Journal Article · · Q. Rev. Econ. Bus.; (United States)

OSTI ID:6260400

Johnson, M H; Bennett, J T

This study updates and extends analyses of all extractive products, four major subgroups (agriculture, minerals, forestry, and fishing), and selected individual commodities. In contrast to the conventional wisdom that increasing scarcity is a major problem, this study indicates that, for the most part, resource scarcity is decreasing rather than increasing when the annual rate of growth of unit extraction costs are employed as the indicant of scarcity. This finding is based upon a comparison of unit extraction costs in the post-1957 period with the costs of extraction during the period 1870 to 1957, which were estimated by Barnett and Morse. According to B and M, two factors are primarily responsible for the decline in relative scarcity, namely, technological advances in resource conversion and extraction technology and, because of demand pressures, a shift from less to more plentiful resources. Evidently, these forces continued to operate during the post-1957 period also, because of the continuing decline in resource scarcity. Public policy actions, however, may through the rigidities induced by the regulatory process, reduce the efficacy of these two factors which encourage substitution among resources and provide the economic incentives necessary for technological innovation. Thus, based on the Barnett and Morse definition of resource scarcity, findings here do not support the need for public policy which is justified primarily on the grounds of dealing with increasing resource scarcity. 6 references, 1 figure.

• OSTI ID: 6260400
• Journal Information: Q. Rev. Econ. Bus.; (United States), Journal Name: Q. Rev. Econ. Bus.; (United States) Vol. 20:1; ISSN QREBA
• Country of Publication: United States
• Language: English

Related Subjects

29 ENERGY PLANNING, POLICY, AND ECONOMY
290400* -- Energy Planning & Policy-- Energy Resources
DEMAND FACTORS
ECONOMIC ANALYSIS
ECONOMICS
PUBLIC POLICY
RESOURCE DEPLETION
TECHNOLOGY UTILIZATION