Exhaustible Resources in an Overlapping Generations Economy

Arbeitspapier

This paper explores the natural resource consumption behavior of a competitively determined economy relative to a socially planned benchmark when agents are characterized as having finite lifespans which overlap. A general equilibrium model of a production economy which uses inputs from a finite stock of an aggregate natural resource is formulated and solved for the rates of resource extraction associated with the competitive outcome and the socially planned one. It is shown that resource extraction in the competitive economy can exceed that of the socially planned optimum and that intergenerational inequities result.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Queen's Economics Department Working Paper ; No. 844

Classification and Topics

• Classification: Wirtschaft ; Fiscal and Monetary Policy in Development
• Subject: overlapping generation ; essential non-renewable resources ; social planning problem ; competitive agents ; extraction rates ; dynamic programming ; stability and convergence.

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Love, David R. F.
• Event: Veröffentlichung
• (who): Queen's University, Department of Economics
• (where): Kingston (Ontario)
• (when): 1991

Further information

• Handle: http://hdl.handle.net/10419/189168
• Last update: 10.03.2025, 11:42 AM CET