Bài giảng MicroEconomics - Chapter 15 Natural Resource and Energy Economics

15 Natural Resource and Energy EconomicsMcGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved.LO1Resource Supplies: Doom or Boom?Population increased from 1 billion people in 1800 to about 6.8 billion todayStandard of living is 12 times higherConsumption of resources is much higher15-2LO1Population GrowthThomas Malthus’s (1798) predictionsReplacement rateTotal fertilityModernizationDeath rates fallFertility rate falls below replacement rate15-3LO1Resource Consumption Per PersonIncreasing commodity demandPopulation growthRising consumption per personCommodity supply has risen faster than demandCommodity prices are falling15-4LO1Will resource supplies be sustainable in the future?Prospects are hopefulDemand for resources will reach a peak and decline with falling birthratesResource consumption per capita leveled off or is decreasingResource Consumption Per Person15-5LO1Leveled off in the rich countriesDemand will increase in poorer countriesChallenge is to move resource supplies from their place of origin to places of needResource Consumption Per Person15-6Resource Consumption Per Person15-7Resource Consumption Per Person15-8LO1Resource Consumption Per Person15-9LO2Efficient Energy UseAchieve efficiency in business conditions with Variations in fixed costs Daily variations in demandDifferent types of generation technology15-10LO3Running Out of Energy?Will run out of oil or cheap energyLack of energy is not a concernAlternative sourcesExternalities15-11LO4Natural Resource EconomicsPolicies for extracting resources to maximize net benefitsPresent vs. future consumptionPresent value Renewable resources Nonrenewable resources15-12LO4Natural Resource EconomicsNonrenewable resourcesOil, coal, and metalsExtraction strategy to maximize stream of profitsUser costSell today, cannot sell in the futureHigher expected demand encourages less extraction todayProperty rights15-13LO5Renewable ResourcesOptimal fisheries managementDifficult to assign property rightsPolicies to limit catch sizesTotal allowable catchIndividual transfer quota15-14