Comparing Nonrenewable Resources Stocks and Capital Goods

Bibliographic Data

ID23627173
AuthorsJohnson Kakeu (0000-0003-3354-1762, University of Prince Edward Island, corresponding author)
Year2023
Pages649-662
Publication date2023-01-26
Open AccessNo
TypeCHAPTER
VenueOxford Handbook of the Economy of Cameroon (SOURCE_BOOK)
PublisherOxford University Press (PUBLISHER • GB)
DOI10.1093/oxfordhb/9780192848529.013.18
OpenAlexW4318217861
ISBN9780192848529
LanguageEN
References cited14

This chapter shows that from a social welfare perspective non-renewable natural resource stocks are not like capital goods in capital-resource economies. We use shadow pricing for comparing non-renewable natural resource stocks and capital goods. It is shown that from a social welfare perspective, there are situations where the social worth of non-renewable natural resource stocks is greater than the social worth of capital goods. More generally, nonrenewable natural resource stocks are not equivalent to capital goods from a social welfare perspective. Numerical examples on shadow pricing are provided for illustration. Shadow pricing metric and the market pricing metric do not lead to the same conclusion when it comes to comparing natural resource stocks and capital goods. We contribute to the literature that emphasizes the importance of incorporating information on natural resource stocks in optimally managing a country’s public wealth. Public policy recommendations relating to the optimal management of natural resource stocks in Cameroon are discussed.

Capital (architecture) · Capital good · Economics · Ecosystem services · Market economy · Microeconomics · Natural capital · Natural resource · Natural resource economics · Non-renewable resource · Public good · Renewable energy · Renewable resource · Resource (disambiguation) · Shadow price · Welfare · Climate Change Policy and Economics · Ecology · Economic theories and models · Natural Resources and Economic Development

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