Reconciling Hotelling Resource Models with Hotelling’s Accounting Method

Robert D. Cairns and John M. Hartwick

The Energy Journal, 2022, vol. 43, issue 5, 117-138

Abstract: In green accounting, it is seldom checked that depreciation must sum to original value. A re-examination of green accounting under this condition finds that, in a non-autonomous program, income should include capital gains. Subtle questions respecting the role and treatment of capital gains are brought to light through six models in exhaustible-resource economics. It is likely that there are sources of non-autonomy when a problem is not optimal or when there are non-priced assets—in practice, always. Accordingly, the questions raised strongly influence accounting method.

Keywords: Green accounting; Non-autonomy; Depreciation; Income; Exhaustible resources; Resource-allocation mechanism (search for similar items in EconPapers)
Date: 2022
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Persistent link: https://EconPapers.repec.org/RePEc:sae:enejou:v:43:y:2022:i:5:p:117-138

DOI: 10.5547/01956574.43.5.rcai

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