Chapter 1: Basic economics of nonrenewable resource use
This is an overview of the economics of extraction of a nonrenewable resource in the tradition of Hotelling (1931). It covers some detail of the structure of the extractive competitive firm and of the extractive industry comprising in one case competitive small firms and in another a monopoly firm. I also present notes on the case of oligopoly in extraction, although this topic is not gone into in detail since it has developed with a variety of approaches and with a large number of interesting contributions. The approach deals with the firm and the industry, and not with economy-wide models. Economy-wide models are well surveyed by van der Ploeg (2011), an article with some 225 references. The overview follows from the first half of a first-year graduate course I have taught over some 20 years. The overview is light on empirical work on the economics of extraction, although there are some brief digressions into this literature. The narrative line is mostly historical.