Affordable Access

Publisher Website

Are mineral deposits valuable? A reconciliation of theory and practice

Authors
Journal
Resources Policy
0301-4207
Publisher
Elsevier
Publication Date
Volume
24
Issue
1
Identifiers
DOI: 10.1016/s0301-4207(98)00004-x
Keywords
  • Hotelling'S Rule
  • Capital Theory
  • Capacity Constraints
Disciplines
  • Engineering

Abstract

Abstract Many engineers doubt the relevance of Hotelling's r-percent rule for the rent to nonrenewable resources. Economists ought to be concerned about such doubt, as engineers are instrumental in decisions about the path of production. The current paper takes a simple perspective on mining investment to argue that an r-percent rule holds implicitly in engineers' choices which maximize the value of mineral deposits.

There are no comments yet on this publication. Be the first to share your thoughts.