Env-Econ 101: Hotelling's Rule Part 2

Environmental Economics

In Part 1 of our Hotelling's Rule explanation , we laid out the basic economic observation that 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.  The complete stock of the resource is fully known and there is no more.

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Green Future: Google Invests $1 Billion in Clean Energy

Environmental News Network

The Internet juggernaut Google has recently invested $1 billion in green, clean, reusable energy. Read on to learn more about Google’s latest venture in renewable energy, why it did it, and what exactly it’s doing with this environmental technology. Google’s Clean Energy. If you haven’t guessed it by now, Google invested specifically in clean wind power — $275 million in Texas resources alone. The Benefits of Alternative Resources.

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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