Difference between dynamic efficiency and static efficiency

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Compare and contrast the difference between dynamic (intertemporal) efficiency and static efficiency with respect to non-renewable resources.

(A) What are the efficiency conditions for each?

(B) What costs reflected in the inter-temporal analysis are not captured in the static analysis?

(D) What impact does the discount rate have on the allocation of non-renewable resources across time and long run price path of non-renewable resources? (Hostelling rule).

(E) Discuss the ethical issues associated with economists use and choice of a discount rate when analyzing natural resource and environmental problems.

Reference no: EM13797054

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