ABSTRACT
Partha Dasgupta skillfully draws a set of striking conclusions about optimal investments in a world of depletable resources. In this paper, I address, extend, and reinterpret some of Dasgupta’s conclusions, while using his basic framework. Three issues are examined. How does continual technical progress influence the optimal growth trajectory when resources are depletable? What are some empirical caveats that may substantially alter the conclusions presented? What discount rate should be used to make investment decisions under uncertainty in a world of depletable resources and endogenous research and development? These issues are addressed in the following three sections.
