Economic Depreciation, National Income Accounting, And Common Property Resource Management

Abstract

"This paper presents a conceptual framework that we believe will serve as a sound basis for measuring the economic depreciation of natural resources. The framework we propose is founded on a theoretical model of resource depreciation which can be applied to the harvesting of renewable resources in both the steady and in the transition to the steady state, as well as to the extraction of nonrenewable resources. Additionally, the model allows for the planner to determine economic depreciation in the typical case that harvesting or extraction does not conform to an efficient program."