Economics Dictionary of ArgumentsHome
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| Exhaustible resources: Exhaustible resources in economics are natural resources that are finite and can be depleted, such as fossil fuels or minerals. Their availability diminishes with use, raising concerns about sustainability and the need for efficient management and conservation to ensure long-term availability._____________Annotation: The above characterizations of concepts are neither definitions nor exhausting presentations of problems related to them. Instead, they are intended to give a short introduction to the contributions below. – Lexicon of Arguments. | |||
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Piero Sraffa on Exhaustible Resources - Dictionary of Arguments
Kurz I 304 Exhaustible resources/Sraffa/Kurz: (…) it is to be noted that the problem of exhaustible resources, or 'wasting assets', as Sraffa used to call them, was on his mind from an early time of his (re)constructive work, which started in the second half of the 1920s, and the problem remained there until his respective work culminated in the publication of his 1960 book(1). And Sraffa was also aware from an early time onwards that the problem caused diffculties for the long-period method. In a note dated 25 March 1946 he counterposed the difference between the physical real cost pproach to the problem of value and distribution, which he had endorsed, and the classical-Marxian labour theory of value. He actually insisted that the former was able to deal with exhaustible resources, whereas the latter was not: „The difference between the 'Physical real costs' and the Ricardo-Marxian theory of 'labour costs' is that the first does, and the latter does not, include in them the natural resources that are used up in the course of production (such as coal, iron, exhaustion of land) - [Air, water etc. are not used up: as there is an unlimited supply, no subtraction can be made from [infinite]]. This is fundamental because it does away with 'human energy' and such metaphysical things.“ He added with regard to the natural ingredients of production: „But how are we going to replace these natural things? There are 3 cases: a) they can be reproduced by labour (land properties, With manure and so on); b) they can be substituted by labour (coal by hydroelectric plant: or by spending in research and discovery of new sources and new methods of economising) c) they cannot be either reproduced nor substituted - and in this case they cannot find a place in a theory of continuous production and consumption: they are dynamical facts, that is a stock that is being gradually exhausted and cannot be renewed, and must ultimately lead to the destruction of the society. But this case does not satisfy our condition of a society that just manages to keep continuously alive.“ (Sraffa Papers, D3/12/42: 33)(2) Kurz: In Sraffa's View exhaustible resources thus constitute 'dynamical facts' which cannot be studied rigorously in a framework in which prices and income distribution do not change. A dynamic theory is needed. However, Sraffa was sceptical that a reliable dynamic theory could be elaborated. Kurz I 306 Natural resources/Sraffa: „Natural resources which are used in production, such as land and mineral deposits, and which being in Short supply enable their owners to obtain a rent, can be said to occupy among means of production a position equivalent to that of 'non-basics' among products. Being employed in production, but not themselves produced, they are the converse of commodities which, although produced, are not used in production.“ (Sraffa 1960: 74)(1) Machines/investment goods/Sraffa: „Machines of an obsolete type which are still in use are similar to land in so far as they are employed as means of production, although not currently produced.“ (Sraffa 1960: 78)(1) >Exhaustible resources/Parrinello. 1. Sraffa, P. (1960). Production of Commodities by Means of Commodities. Prelude to a Critique of Economic Theory, Cambridge: Cambridge University Press. 2. Taken from the work Sraffa carried out in the period 1927–1931 (unpublished papers). Kurz, Heinz D. and Salvadori, Neri. „The 'classical' approach to exhaustible resources. Parrinello and the others.“ In: Kurz, Heinz; Salvadori, Neri 2015. Revisiting Classical Economics: Studies in Long-Period Analysis (Routledge Studies in the History of Economics). London, UK: Routledge._____________Explanation of symbols: Roman numerals indicate the source, arabic numerals indicate the page number. The corresponding books are indicated on the right hand side. ((s)…): Comment by the sender of the contribution. Translations: Dictionary of Arguments The note [Concept/Author], [Author1]Vs[Author2] or [Author]Vs[term] resp. "problem:"/"solution:", "old:"/"new:" and "thesis:" is an addition from the Dictionary of Arguments. If a German edition is specified, the page numbers refer to this edition. |
Sraffa I Piero Sraffa Production of Commodities by Means of Commodities. Prelude to a Critique of Economic Theory (Cambridge: Cambridge University Press). Cambridge 1960 Kurz I Heinz D. Kurz Neri Salvadori Revisiting Classical Economics: Studies in Long-Period Analysis (Routledge Studies in the History of Economics). Routledge. London 2015 |
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