Nonrenewable Resources and Conservation

Nonrenewable resources and conservation (JEL Q3) cover the economics of exhaustible resources.

Scope

It includes minerals and the optimal extraction of exhaustible resources, depletion, and resource scarcity.

Sub-topics

• General
• Demand and Supply • Prices
• Exhaustible Resources and Economic Development
• Resource Booms
• Natural Resources and Domestic and International Conflicts
• Hydrocarbon Resources
• Issues in International Trade
• Government Policy
• Other

Core questions

• How should exhaustible resources be extracted over time?
• What governs resource scarcity and prices?
• How is depletion managed?

Key concepts

• Exhaustible resources
• Optimal extraction
• Hotelling rule
• Resource scarcity
• Depletion

Frequently asked questions

What is the Hotelling rule?

The condition that the price of an exhaustible resource (net of cost) should rise at the rate of interest along an optimal extraction path.