Editing Non-renewable resource (section)

==Economic models==
In economics, a non-renewable resource is defined as [[Good (economics)|goods]] whose greater consumption today implies less consumption tomorrow.<ref>Cremer and Salehi-Isfahani 1991:18</ref> [[David Ricardo]] in his early works analysed the pricing of exhaustible resources, and argued that the price of a mineral resource should increase over time. He argued that the spot price is always determined by the mine with the highest cost of extraction, and mine owners with lower extraction costs benefit from a differential rent. The first model is defined by [[Hotelling's rule]], which is a 1931 economic model of non-renewable [[resource management]] by [[Harold Hotelling]]. It shows that efficient exploitation of a nonrenewable and nonaugmentable resource would, under otherwise stable conditions, lead to a [[resource depletion|depletion]] of the resource. The rule states that this would lead to a net price or "[[Hotelling rent]]" for it that rises annually at a rate equal to the [[rate of interest]], reflecting the increasing scarcity of the resources.<ref>{{cite journal |first=H. |last=Hotelling |year=1931 |title=The Economics of Exhaustible Resources |journal=[[Journal of Political Economy|J. Political Econ.]] |volume=39 |issue=2 |pages=137–175 |doi=10.1086/254195 |jstor=1822328 |s2cid=44026808 }}</ref> The [[Hartwick's rule]] provides an important result about the [[sustainability]] of welfare in an economy that uses non-renewable resources.<ref>{{cite journal |last1=Hartwick |first1=John M. |title=Intergenerational Equity and the Investing of Rents from Exhaustible Resources |journal=The American Economic Review |date=December 1977 |volume=67 |issue=5 |pages=972–974 |jstor=1828079 |url=https://www.jstor.org/stable/1828079}}</ref>