On the Empirical Significance of the Hotelling Rule

Livernois, John

doi:10.1093/reep/ren017

Cited by 107 publications

(70 citation statements)

References 56 publications

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“…The model does not adopt the Hotelling rule (Hotelling, 1931), partially due to the difficulties in finding empirical evidence to back-up the approach (Kronenberg, 2008;Livernois, 2009), but also because the rule is based on a miner making decisions 10 It is assumed that the identified parcel of land is available for a claim to be issued, and thus the government side of the decision making process is neglected. The assumption of a rational profit-maximising actor for the miner is one that could be called into question given the importance of small-scale mining as a source of livelihoods in many situations (Bryceson & Jønsson, 2010).…”

Section: Mining Modelmentioning

confidence: 99%

Rights to the forest, REDD+ and elections: Mining in Guyana

Laing

2015

Resources Policy

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This paper examines the impact of electoral cycles and the introduction of Reducing Emissions from Deforestation and Degradation (REDD+) policy upon the holding of small-scale mining property rights in Guyana. Mining is both the major cause of deforestation and the main economic activity in the country. A simple model of the incentives to hold mining property rights is developed and tested using a unique data-set of small-scale mining property rights data. Econometric techniques are used to test the findings of the model, concluding that the number of mining rights issued fall after election years, with the number rescinded rising. The introduction of REDD+ in Guyana also seems to have increased the number of mining claims being relinquished, and reduce the number being issued. The findings highlight the importance of political economy events in the evolution of small-scale mining activity, and show some evidence that the introduction of a REDD+ framework in Guyana has impacted the main driver of deforestation, despite the absence of specific policy targeting the sector

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Section: Mining Modelmentioning

confidence: 99%

Rights to the forest, REDD+ and elections: Mining in Guyana

Laing

2015

Resources Policy

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“…Even though the empirical validation of the Hotelling-framework is mixed (Livernois 2008), Anderson et al (2014) show that using the drilling instead of the extraction decision matches the data on oil extraction quite well. This provides evidence that the intertemporal arbitrage condition inherent in the Hotelling framework is still applicable.…”

Section: Introductionmentioning

confidence: 99%

Does the Adverse Announcement Effect of Climate Policy Matter? — A Dynamic General Equilibrium Analysis

Riekhof

Bröcker

2017

Clim. Change Econ.

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in AbstractWe consider a carbon emissions tax announced today, but implemented after a known time-lag. Before implementation, the announcement induces higher emissions than without intervention. In welfare terms, this adverse announcement effect could more than outweigh the gain after tax implementation. We quantify a 'critical lag' such that a shorter (longer) implementation lag is a welfare gain (loss) over nointervention. We identify resource scarcity as the main driver for a short critical lag. The model is a global Ramsey Model extended by an exhaustible carbon resource and linked to a climate model.

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“…Nordhaus (1974), Simon (1981), and others argue that technological change helps overcome scarcity by increasing the economically extractable stock of non-renewable resources. This helps explain the empirical evidence of increasing production of nonrenewable resources and non-increasing real prices of most non-renewable resources over the long run (see Krautkraemer, 1998;Livernois, 2009) However, the resource economics literature since Hotelling (1931) primarily builds on the assumption of a fixed-stock. In growth models with non-renewable resources implied scarcity is primarily overcome by technological change in the use of resources and substitution of non-renewable resources by capital.…”

Section: Introductionmentioning

confidence: 99%

Non-Renewable Resources, Extraction Technology, and Endogenous Growth

Stuermer

Schwerhoff

2015

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We add an extractive sector to an endogenous growth model of expanding varieties and directed technological change. Firms increase their economically extractable stocks of non-renewable resources through R&D investment in extraction technology and reduce their stocks through extraction. We show how the geological distribution of the non-renewable resource interacts with technological change. Our model accommodates long-term trends in non-renewable resource markets -namely stable prices and exponentially increasing extractionfor which we present data going back to 1792. The model suggests that over the long term, development of new extraction technologies neutralizes the increasing demand for non-renewable resources in industrializing countries such as China.JEL classification: O30, O41, Q30

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On the Empirical Significance of the Hotelling Rule

Cited by 107 publications

References 56 publications

Rights to the forest, REDD+ and elections: Mining in Guyana

Rights to the forest, REDD+ and elections: Mining in Guyana

Does the Adverse Announcement Effect of Climate Policy Matter? — A Dynamic General Equilibrium Analysis

Non-Renewable Resources, Extraction Technology, and Endogenous Growth

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