Resource Economics Flashcards, test questions and answers
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What is Resource Economics?
Resource economics is a branch of economics that studies the supply, demand and distribution of resources. It has its roots in the classical economic theories of Adam Smith and David Ricardo, but it has been heavily influenced by modern developments in environmental economics and game theory. Resource economics seeks to understand how resources are used within an economy and how they can be managed efficiently. This includes understanding both the short-term dynamics of resource use as well as its long-term effects on economic growth and sustainability.Resource economics examines the production, consumption, pricing, allocation, distribution, taxation and regulation of natural resources. In addition to traditional land-based natural resources such as minerals or energy sources like oil or gas, resource economists also consider renewable energy sources like solar or wind power or nonrenewable energy sources like nuclear power. They also analyze how different types of land use such as agricultural land versus urban development affect local economies. Other topics include conservation efforts for endangered species, water management strategies for fisheries and forestry policies that impact timber harvesting practices. Resource economists often employ mathematical models to study resource use patterns over time. These models typically incorporate some combination of market forces such as supply/demand curves; financial incentives for producers; technological constraints on resource extraction; environmental considerations; social equity issues; political influences within different jurisdictions; and other variables impacting decision-making related to resource use. By using these models to simulate various scenarios related to particular natural resources such as changes in population size or global temperatures researchers can gain insight into potential future outcomes associated with particular policy decisions concerning those resources.
