Higher Quality Exhaustible Resource Deposits Receiving Higher Or Lower Resource Rents In A Simple Spatial Framework

John Hartwick

No 1281, Working Paper from Economics Department, Queen's University

Abstract: Kolstad.s (1994) model of intertemporal, competitive supply to a linear market from two distinct exhaustible resource deposits admits two di¤erent interior solutions . one with the low cost deposit "earning" the higher resource rent and the other with the low cost deposit "earning" the lower resource rent. This latter outcome turns on the initial size of the low cost deposit being significantly larger than the high cost deposit. We infer then that size can trump quality in the determination of the resource rent for a deposit, when geography is explicit.

Keywords: exhaustible resource extraction; deposit quality; linear market (search for similar items in EconPapers)
JEL-codes: D21 D49 Q31 (search for similar items in EconPapers)
Pages: 17 pages
Date: 2011-09
New Economics Papers: this item is included in nep-env and nep-geo
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Persistent link: https://EconPapers.repec.org/RePEc:qed:wpaper:1281

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