tailieunhanh - Lecture Economics (19/e) - Chapter 15: Natural resource and energy economics

After studying this chapter you will be able to understand: Explain why falling birthrates mean that we are not likely to run out of natural resources, describe why using a mix of energy sources is efficient, even if some of them are quite costly, discuss why running out of oil would not mean running out of energy, show how the profit motive can encourage resource conservation, relate how to use property rights to prevent deforestation and species extinction. | 15 Natural Resource and Energy Economics McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved. LO1 Resource Supplies: Doom or Boom? Population increased from 1 billion people in 1800 to about billion today Standard of living is 12 times higher Consumption of resources is much higher 15- LO1 Population Growth Thomas Malthus’s (1798) predictions Replacement rate Total fertility Modernization Death rates fall Fertility rate falls below replacement rate 15- LO1 Resource Consumption Per Person Increasing commodity demand Population growth Rising consumption per person Commodity supply has risen faster than demand Commodity prices are falling 15- LO1 Will resource supplies be sustainable in the future? Prospects are hopeful Demand for resources will reach a peak and decline with falling birthrates Resource consumption per capita leveled off or is decreasing Resource Consumption Per Person 15- LO1 Leveled off in the rich countries Demand will increase in poorer countries Challenge is to move resource supplies from their place of origin to places of need Resource Consumption Per Person 15- Resource Consumption Per Person 15- Resource Consumption Per Person 15- LO1 Resource Consumption Per Person 15- LO2 Efficient Energy Use Achieve efficiency in business conditions with Variations in fixed costs Daily variations in demand Different types of generation technology 15- LO3 Running Out of Energy? Will run out of oil or cheap energy Lack of energy is not a concern Alternative sources Externalities 15- LO4 Natural Resource Economics Policies for extracting resources to maximize net benefits Present vs. future consumption Present value Renewable resources Nonrenewable resources 15- LO4 Natural Resource Economics Nonrenewable resources Oil, coal, and metals Extraction strategy to maximize stream of profits User cost Sell today, cannot sell in the future . | 15 Natural Resource and Energy Economics McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved. LO1 Resource Supplies: Doom or Boom? Population increased from 1 billion people in 1800 to about billion today Standard of living is 12 times higher Consumption of resources is much higher 15- LO1 Population Growth Thomas Malthus’s (1798) predictions Replacement rate Total fertility Modernization Death rates fall Fertility rate falls below replacement rate 15- LO1 Resource Consumption Per Person Increasing commodity demand Population growth Rising consumption per person Commodity supply has risen faster than demand Commodity prices are falling 15- LO1 Will resource supplies be sustainable in the future? Prospects are hopeful Demand for resources will reach a peak and decline with falling birthrates Resource consumption per capita leveled off or is decreasing Resource Consumption Per Person 15- LO1 Leveled off in the