AREC365 Lecture Notes - Lecture 1: Oil Sands, Capital Good, Public Good
21 Sep 2016
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Document Summary
Low price ed & es & change in demand or supply. Cpr railway w/ government money to open up lands of the west. Tar sands mid 1990s, made tax breaks to get the tar sands going of natural resource sectors. The case of uncompensated cost or spillover cost [external diseconomies] ex. ) pollution. Spillover to other economic agents, that the agent doing the action cannot capture. Public good is an extreme form of this. Policy making for the produced goods vs. the value of the amenity. Natural resources: natural assets , a kind of capital good, that yields a flow of services for mankind. Life support, material inputs such as iron, ore, etc. (enter production), waste disposal, ecological & amenity services. Some enter production (material), whereas some directly effect us. Kn [ k = km + kn + kh + ksoc ] Capital is one of the ingredients of growth. Flows with critical zones ex. ) endangered plant and animal zones.
