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Learn about effective resource pricing models, Hotelling’s Rule, and efficient water allocation to ensure long-term environmental sustainability and economic stability. Explore strategies for managing depletable and replenishable resources in a competitive equilibrium.
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Ch. 14 Natural Resource Management: Depletable and Replenishable Resources
Hotelling’s Rule In competitive equilibrium, the net price (economic rent) of a depletable resource will increase at a rate equal to the discount rate.