Optimal consumption of depletable natural resources: comment

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

DOI:https://doi.org/10.2307/1884168· OSTI ID:6947573

Kemp, M C ^[1]; Long, N V

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1. Univ. of New South Wales, Kensington, Australia

The impact on competitive rates of natural resource extraction when the size of resource stocks is unknown is examined using alternative behavioral assumptions to the Weinstein-Zeckhauser analysis (Quar. J. Econ., 89; Aug. 1975) of pure price-taking behavior. It is assumed that producers anticipate having future monopolistic power and profit potential when their stock is all that is left. The authors question whether either traditional monopoly or free market assumptions can be optimal in the case of dwindling resources, although monopolistic extraction rates appear optimal in the case of constant elasticity. 6 references.

• OSTI ID: 6947573
• 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
BEHAVIOR
CONSUMPTION RATES
DEMAND FACTORS
ECONOMIC ANALYSIS
ECONOMICS
MARKET
MONOPOLIES
OPTIMIZATION
RESOURCE DEPLETION
RESOURCES
TRADE