ABSTRACT
This conclusion presents some closing thoughts on the key concepts discussed in the preceding chapters of this book. The book examines how the existence of non-renewable natural resources affects the short-run behaviour of the economy, and examines the possible micro-foundations for the Hotelling principle's holding in the short run. It explains that the net revenue (profit) of the firms accrues to the households, as does the return to resource owners. The book evaluates a model in which the existence of non-market-clearing trading results in income-constrained, effective schedules. It also evaluates the adjustment of prices in response to unbalanced supply and demand. The book shows that the price of resource flow determines the price of resource stocks, and that consequently the latter adjusts in response to imbalances in the flow market. It explores that the principle is a necessary condition for the efficient intertemporal allocation of non-renewable natural resource.
