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Chapter 6 The Allocation of Depletable and Renewable Resources: An Overview Contents: 7.1 Introduction 7.2 A Resource Taxonomy 7.3 Efficient Intertemporal Allocation 7.4 Market Allocation 7.5 Summary 7.1 Introduction Main contents in chapter 7: Defining and discussing a simple but useful resource taxonomy ( classification system ), as well as explaining the dangers of ignoring the distinctions made by this taxonomy. Defining an efficient allocation of an exhaustible resource over time when no renewable substitute in available. 7.1 Introduction Main contents in chapter 7: Characterize efficient extraction paths for renewable and depletable resources, assuming that they are perfect substitutes, and how these efficient paths are affected by changes in the nature of the cost function. Analyzing whether or not the market is capable of yielding a dynamically efficient allocation in the presence or absence of a renewable substitute. 7.2 A Resource Taxonomy(资源分类) Three separate concepts are used to classify the stock of depletable resources(可耗竭资源): Current reserves(当前储备): defined as known resources that can profitably be extracted at current prices. Potential reserves(潜在储备): defined as a function rather than a number. The amount of reserves potentially available depends upon the price people are willing to pay. Resource endowment(资源禀赋): represents the natural occurrence of resource in the earth’s curst. 7.2 A Resource Taxonomy Other distinctions among resource categories are also useful: Depletable resources(可耗竭资源): are one for which the natural replenishment feedback loop can safely be ignored. Renewable resources(可再生资源): are differentiated from depletable resources primarily by the fact that natural replenishment augments the flow of renewable resources at a non-negligible rate. 7.3 Efficient Intertemporal Allocation 7.3.1 The Two-Period Model Revisited 7.3.2 The N- Period Constant-Cost Case 7.3.3 Transition to a Renewable Substitute 7.3.4 Increasing Marginal Exaction C
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