The Effects of Non-Renewable Energy Sources - Environmental Interactions on Intertemporal Efficiency and Intergenerational Equity

Abstract:     
This research article is concerned with the overlap between the fields on non-renewable energy sources and environmental economics. In extracting a non-renewable energy source today, for current consumption, we are reducing the stock of that resource available for future generations. If, as depletion occurs, lower grade non-renewable energy resource is extracted then in all likelihood, environmental damage per unit of non-renewable energy source used will consequently rise for future generations. A very simple but deep question concerns the efficient and equitable trade off between present non-renewable energy sources consumption and future environmental disbenefits. This research tries to address this question and its applicabilities to the oil producing and exporting countries.

Keywords: intertemporal efficiency, intergenerational equity, non-renewable energy resources, environmental resources

JEL Classification: Q39, Q59

Accepted Paper Series