1、Chapter 6 The Allocation of Depletable and Renewable Resources:An OverviewContents:7.1 Introduction7.2 A Resource Taxonomy7.3 Efficient Intertemporal Allocation7.4 Market Allocation7.5 Summary7.1 IntroductionMain contents in chapter 7:Defining and discussing a simple but useful resource taxonomy(cla
2、ssification 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 IntroductionMain contents in chapter 7:Characterize efficient extraction paths
3、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 ren
4、ewable 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）（当前储备）:defined as known resources that can profitably be extracted at current prices.Potential reserves（潜在储备）（潜在储备）:defined as a function rather
5、than a number.The amount of reserves potentially available depends upon the price people are willing to pay.Resource endowment（资源禀赋）（资源禀赋）:represents the natural occurrence of resource in the earths curst.7.2 A Resource TaxonomyOther distinctions among resource categories are also useful:Depletable
6、resources（可耗竭资源）（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）（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.
7、3 Efficient Intertemporal Allocation7.3.1 The Two-Period Model Revisited7.3.2 The N-Period Constant-Cost Case7.3.3 Transition to a Renewable Substitute7.3.4 Increasing Marginal Exaction Cost7.3.5 Exploration and Technological Progress7.3.1 The Two-Period Model RevisitedIn summary,two-period model su
8、ggests that an efficient allocation of a finite resource with a constant marginal cost（边际成本）of extraction involves rising marginal user cost（边际使用者成本）and falling quantities consumed.7.3.2 The N-Period Constant-Cost CaseAssumption:Depletable resource（可耗竭资源）with no substitute（替代资源）:MC=2,Q=40,r=0.1 Dema
9、nd function（需求函数）:P=8-0.4q N-periodNB!First of all,in this case as in the two-period case,the efficient marginal user cost（边际使用者成本）rises steadily in spite of the fact that the marginal cost of extraction（边际开采成本）remains constant.This rise in the efficient marginal user cost reflects increasing scarci
10、ty（稀缺）and the accompanying rise in the opportunity cost（机会成本）of current consumption.NB!In response to these rising costs over time,the quantity extracted falls over time until it finally goes to zero.Thus,even there is no increase in the cost of extraction（开采成本）,an efficient allocation envisions a s
11、mooth transition to the exhaustion of a resource.7.3.3 Transition to a Renewable SubstituteAssumption:depletable resource:Q=40，MC=2，r=0.1Substitute renewable resource:MC=6Demand function:P=8-0.4(Qt+Qst)NB!In this efficient allocation,the transition is once again smooth.The depletable resource would
12、be exhausted sooner than it would have been without the renewable resource substitute.7.3.4 Increasing Marginal Extraction CostAssumption:Depletable resource with substitute renewable resourceMarginal cost of extracting the depletable resource rises with the cumulative amount extractedCompare Analys
13、is:The constant-cost caseThe increasing-cost caseChange of Marginal user costRise over time at rate rDecline over time Change of depletable resource reserveCompletely exhaustedNot exhausted7.3.5 Exploration and Technological ProgressExploration of new resourcesTechnological progress7.4 Market Alloca
14、tionWe have examined in detail how the efficient allocation of substitutable,depletable,and renewable resources over time would be defined in a variety of circumstances.Can actual markets be expected to produce an efficient allocation?7.4 Market AllocationAs long as social and private discount rates
15、 coincide,property right structures（产权结构）are well defined,and reliable information about future prices is available,the markets in which those resources are bought and sold will lead to efficient allocation.7.4 Market AllocationTwo different effects of environmental cost（环境成本）:On the demand sideOn the supply sideWhich effect dominates-the demand effect or the supply effect?Objectives&Requirements:Grasp the resource taxonomy Understand the N-period model in different conditions and their implication
