Usage limitations of the Hotelling Rule in the face of rising oil prices. The need for a new critique

Jimena Segura ()
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Jimena Segura: Universidad de Buenos Aires Facultad de Ciencias Económicas.

Revista de Economía Política de Buenos Aires, 2023, issue 26, 9-42

Abstract: The article presents a critical review to the conventional economic theory of non-renewable resources, proving that the concept of scarcity rent that arises from it reflects serious explanatory limitations regarding the relationship between prices and investment in the oil industry. The theoretical and empirical literature is analyzed through the exposition of the modern revisions of the exhaustion theory, and the contrast of the content of the concept of scarcity rent exposed by Lewis Gray -forerunner of Hotelling- against David Ricardo's classical theory of rent.

Keywords: Non-renewable resources; Oil price; Resources supply; Scarcity rent. (search for similar items in EconPapers)
JEL-codes: Q30 Q31 Q39 (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:ake:repba1:y:2023:i:26:p:9-42

DOI: 10.56503/repba.Nro.27(17)

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