When additional resource stocks reduce welfare

H. Benchekroun; A.N. Halsema; C.A.A.M. Withagen

doi:10.1016/j.jeem.2009.08.001

When additional resource stocks reduce welfare

H. Benchekroun
, A.N. Halsema
, C.A.A.M. Withagen

Research output: Contribution to Journal › Article › Academic › peer-review

Abstract

In the dominant firm model, we show that an increase of the fringe's reserves of a nonrenewable resource may lead to a decrease in aggregate discounted social welfare. This happens when the difference between the fringe's extraction cost and the dominant firm's is positive and large enough. We also show that welfare might decrease if the fringe's marginal extraction cost decreases. © 2009 Elsevier Inc. All rights reserved.

Original language	English
Pages (from-to)	109-114
Journal	Journal of Environmental Economics and Management
Volume	59
Issue number	1
DOIs	https://doi.org/10.1016/j.jeem.2009.08.001
Publication status	Published - 2010

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

SDG 1 No Poverty
SDG 10 Reduced Inequalities

Access to Document

10.1016/j.jeem.2009.08.001

Persistent URL (handle)

Persistent link

Cite this

@article{a9b010ff40f14e60a859ddd67d858f41,

title = "When additional resource stocks reduce welfare",

abstract = "In the dominant firm model, we show that an increase of the fringe's reserves of a nonrenewable resource may lead to a decrease in aggregate discounted social welfare. This happens when the difference between the fringe's extraction cost and the dominant firm's is positive and large enough. We also show that welfare might decrease if the fringe's marginal extraction cost decreases. {\textcopyright} 2009 Elsevier Inc. All rights reserved.",

author = "H. Benchekroun and A.N. Halsema and C.A.A.M. Withagen",

year = "2010",

doi = "10.1016/j.jeem.2009.08.001",

language = "English",

volume = "59",

pages = "109--114",

journal = "Journal of Environmental Economics and Management",

issn = "0095-0696",

publisher = "Academic Press Inc.",

number = "1",

}

TY - JOUR

T1 - When additional resource stocks reduce welfare

AU - Benchekroun, H.

AU - Halsema, A.N.

AU - Withagen, C.A.A.M.

PY - 2010

Y1 - 2010

N2 - In the dominant firm model, we show that an increase of the fringe's reserves of a nonrenewable resource may lead to a decrease in aggregate discounted social welfare. This happens when the difference between the fringe's extraction cost and the dominant firm's is positive and large enough. We also show that welfare might decrease if the fringe's marginal extraction cost decreases. © 2009 Elsevier Inc. All rights reserved.

AB - In the dominant firm model, we show that an increase of the fringe's reserves of a nonrenewable resource may lead to a decrease in aggregate discounted social welfare. This happens when the difference between the fringe's extraction cost and the dominant firm's is positive and large enough. We also show that welfare might decrease if the fringe's marginal extraction cost decreases. © 2009 Elsevier Inc. All rights reserved.

UR - https://www.scopus.com/pages/publications/73149116212

UR - https://www.scopus.com/pages/publications/73149116212#tab=citedBy

U2 - 10.1016/j.jeem.2009.08.001

DO - 10.1016/j.jeem.2009.08.001

M3 - Article

SN - 0095-0696

VL - 59

SP - 109

EP - 114

JO - Journal of Environmental Economics and Management

JF - Journal of Environmental Economics and Management

IS - 1

ER -

When additional resource stocks reduce welfare

Abstract

UN SDGs

Access to Document

Persistent URL (handle)

Other files and links

Cite this