Economic Theory of Natural Resources by Gautarn Bhattacharya (auth.), W. Eichhorn, R. Henn, K.

By Gautarn Bhattacharya (auth.), W. Eichhorn, R. Henn, K. Neumann, R. W. Shephard (eds.)

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But there is not yet an established "economic theory of recycling•· that integrates the complex technological, economic and ecological interdependencies [see also Hoel; Jaeger ]. Moreover, most contribu tions use extremely restrictive assumptions, particularly with respect to extraction and recycling technologies. Therefore we feel that there is still considerable need to achieve a better understanding of the technological and resource conserving aspects of recycling. This is the issue of the present paper.

For example, K may be the total stock of a resource, which is an upper bound for total production over the planning period T. The decision problern is completed by an objective function T k e q·t t=O t (3) where q := 1 + r and r is the rate of retum desired by the decision maker. The aim is to find a decision x and a corresponding income e which maximizes the net present value of fu ture income given by (3), subject to (1) and (2). The optimization problern (1) to (3) causes some difficulties. Thus, it may be difficult to prespecify a rate of retum, in particular, when there are several decision makers.

Frontiers of Quantitative Economics, Volume IIIB. Ed. D. lntriligator. Amsterdam 1977, 507-532. Economic Theory of Natural Resources. ©Physica-Verlag, Würzburg-Wien, 1982. Extraction and Recycling of Depletable Natural Resources 1 ) Rüdiger Pethig I. Introduction There are various devices recommended to escape or relax the increasing scarcity constraint on depletable resources. Among them, recycling takes a prominent position since it promises to contribute to a solution of three resource problems: First, it economizes on the reserves of the recycled material under consideration; second, it may be less energy intensive than virgin material production (extraction) and third, it may, in addition, reduce environmental pollution generated by the discharge ofunreused waste products.

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