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Resource Use When Demand is Interdependent Over Time *
Author(s) -
MANNING R.
Publication year - 1978
Publication title -
economic record
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.365
H-Index - 42
eISSN - 1475-4932
pISSN - 0013-0249
DOI - 10.1111/j.1475-4932.1978.tb00317.x
Subject(s) - consumption (sociology) , renewable resource , resource (disambiguation) , interdependence , non renewable resource , economics , limit (mathematics) , environmental economics , microeconomics , natural resource economics , renewable energy , computer science , mathematics , computer network , social science , mathematical analysis , sociology , law , political science , electrical engineering , engineering
Optimal consumption programmes are characterized for a naturally renewable, and a non‐renewable, resource when a parameter determining instantaneous utility depends on cumulated past consumption. Unlike conventional results, optimal consumption may increase over time. Conditions for this are given. For both types of resource it is shown that a free good is not necessarily consumed to the limit of availability, even though non‐satiation appears to hold. Each problem may be interpreted to be about the use of a poluting resource (like uranium), and it then reflects basic physical laws.