Wither coal (despite all attempts to the contrary)? What's next?

Environmental Economics

In our Env-Econ 101 series (to the left), we have a lengthy two part explanation ( Part 1 , Part 2 ) of the Hotelling rule for depletable natural resources which is basically summarized as: For a non-renewable, exhaustible resource with completely known stock, no discoveries possible, no alternatives, no recycling, private ownership and constant costs of extraction, the price of the resource will increase at the interest rate over time.

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