AREC365 Study Guide - Midterm Guide: Income Distribution, Net Present Value, Linear Programming
11 Apr 2016
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Instability: low price elasticity demand and supply and change in demand or supply (lack of substitutes). Long history of government stimulation for exploration: tax breaks and subsidies are often involved. Externalities: external diseconomies: uncompensated costs and spill overs (ex. Pollution): external economies: unexpected benefits (spill over) and public goods (climate change). Time issue: when of use problem (today vs. tomorrow), conservation redistribution of use rates (for future), depletion redistribution of use rates of resources to the present (not always bad, however excess is), user cost logic. Natural assets that yield a flow of sources. Kn (k = km + kn + kh + ksoc) Stock vs. flow: flows with critical zones can no longer be replenished. Four key determinants of the natural resource base: State of technology (not always good, can create/destroy) Four macro points re natural resources and development = growth: Staple theory (harold innis: successive exploitation of a series of staples over time.
