Optimal consumption of depletable natural resources: an elaboration, correction, and extension

Journal Article · Mon May 01 04:00:00 EDT 1978 · Q. J. Econ.; (United States)

DOI:https://doi.org/10.2307/1884167· OSTI ID:6870185

Cropper, M L ^[1]; Weinstein, M C; Zeckhauser, R J

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1. Univ. of California, Riverside

The Weinstein-Zeckhauser analysis (Quar. J. Econ., 89; Aug. 1975) of the effects of increasing marginal costs of production on competition in an extractive industry is broadened to include impacts on extraction companies with a range of technological capabilities as well as on the amount that is extracted. The use of the Weinstein-Zeckhauser model can produce unrealistic expectations of market efficiency under certain conditions. Efficiency is not shown to follow unless the companies have a variety of competitive markets. Policy planners involved in trade and technology transfer need to keep this in mind as more natural resouce development shifts to Third World owners.

• OSTI ID: 6870185
• Journal Information: Q. J. Econ.; (United States), Journal Name: Q. J. Econ.; (United States) Vol. 92:2; ISSN QJECA
• Country of Publication: United States
• Language: English

Related Subjects

29 ENERGY PLANNING, POLICY, AND ECONOMY
290200* -- Energy Planning & Policy-- Economics & Sociology
290400 -- Energy Planning & Policy-- Energy Resources
292000 -- Energy Planning & Policy-- Supply
Demand & Forecasting
COMPETITION
CONSUMPTION RATES
DEVELOPED COUNTRIES
DEVELOPING COUNTRIES
ECONOMETRICS
ECONOMIC ANALYSIS
ECONOMICS
EFFICIENCY
MARKET
OPTIMIZATION
OWNERSHIP
RESOURCE DEPLETION
RESOURCES
TECHNOLOGY TRANSFER
TRADE