Rapacious resource depletion, excessive investment and insecure property rights

Arbeitspapier

For a country fractionalized in competing factions, each owning part of the stock of natural exhaustible resources, or with insecure property rights, we analyze how resources are transformed into productive capital to sustain consumption. We allow property rights to improve as the country transforms natural resources into capital. The ensuing power struggle about the control of resources is solved as a non-cooperative differential game. Prices of resources and depletion increase faster than suggested by the Hotelling rule, especially with many competing factions and less secure property rights. As a result, the country substitutes away from resources to capital too rapidly and invests more than predicted by the Hartwick rule. The power struggle boosts output but depresses aggregate consumption and welfare, especially in highly fractionalized countries with less secure property rights. The theory suggests that adjusted net saving estimates calculated by the World Bank using market prices over-estimate welfare-based measures of genuine saving.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: CESifo Working Paper ; No. 2981

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Consumption, Saving, Production, Investment, Labor Markets, and Informal Economy: General (includes Measurement and Data) ; Current Account Adjustment; Short-term Capital Movements ; Economic Development: Agriculture; Natural Resources; Energy; Environment; Other Primary Products ; Sustainable Development ; Exhaustible Resources and Economic Development
• Thema: exhaustible resources ; Hotelling rule ; Hartwick rule ; capital ; sustainable consumption ; fractionalization ; seepage ; insecure property rights ; differential game ; genuine saving ; adjusted net saving ; Ressourcenökonomik ; Rohstoffressourcen ; Eigentumsrecht ; Soziale Gruppe ; Investition ; Hotelling-Regel ; Nichtkooperatives Spiel ; Theorie

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): van der Ploeg, Frederick
• Ereignis: Veröffentlichung
• (wer): Center for Economic Studies and ifo Institute (CESifo)
• (wo): Munich
• (wann): 2010

Weitere Informationen

• Handle: http://hdl.handle.net/10419/38889
• Letzte Aktualisierung: 10.03.2025, 11:44 MEZ