Econometrica: Jan 1978, Volume 46, Issue 1

Exploitation of Many Deposits of an Exhaustible Resource

https://doi.org/0012-9682(197801)46:1<201:EOMDOA>2.0.CO;2-B
p. 201-217

John M. Hartwick

Given a known demand schedule for a mineral at each instant of time and many deposits with different known extraction costs per ton (different qualities) and different known sizes, how should exploitation be organized? How does an exogenous change in the size of deposit i or in the extraction costs per unit in deposit i affect the program of exploitation? These questions are investigated for the case of extraction costs constant per ton for deposit i. The comparative static analysis parallels that for a problem with many income classes in location theory.

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