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In economics, a non-renewable resource is defined as goods whose greater consumption today implies less consumption tomorrow. [27] David Ricardo in his early works analysed the pricing of exhaustible resources, and argued that the price of a mineral resource should increase over time. He argued that the spot price is always determined by the ...
In resource economics, Hartwick's rule defines the amount of investment in produced capital (buildings, roads, knowledge stocks, etc.) that is needed to exactly offset declining stocks of non-renewable resources. This investment is undertaken so that the standard of living does not fall as society moves into the indefinite future.
Such conditionally renewable resources are sometimes classified as a third kind of resource or as a subtype of renewable resources. Conditionally renewable resources are presently subject to excess human consumption and the only sustainable long-term use of such resources is within the so-called zero ecological footprint, where humans use less ...
Hotelling's rule defines the net price path as a function of time while maximizing economic rent in the time of fully extracting a non-renewable natural resource.The maximum rent is also known as Hotelling rent or scarcity rent and is the maximum rent that could be obtained while emptying the stock resource.
The exploitation of natural resources describes using natural resources, often non-renewable or limited, for economic growth [1] or development. [2] Environmental degradation , human insecurity, and social conflict frequently accompany natural resource exploitation.
The depletion of resources has been an issue since the beginning of the 19th century amidst the First Industrial Revolution.The extraction of both renewable and non-renewable resources increased drastically, much further than thought possible pre-industrialization, due to the technological advancements and economic development that lead to an increased demand for natural resources.
One of the main consequences of extractivism is the toll that it takes on the natural environment. Due to the scale extraction takes place on; several renewable resources are becoming non-renewable. [3] This means that the environment is incapable of renewing its resources as quickly as the rate they are extracted at. [3]
In resource economics, Hartwick's rule defines the amount of investment in human capital that is needed to offset declining stocks of non-renewable resources. Solow [ 4 ] showed that, given a degree of substitutability between human capital and natural capital, one way to design a sustainable consumption program for an economy is to accumulate ...