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Textbook Site for:
Environmental and Natural Resource Economics
Jonathan M. Harris, Tufts University
Internet Exercises
Chapter 12: Resources: Scarcity and Abundance

  1. Read through the "Introduction" and "Business as Usual" sections of the 1995 Congressional Research Service Issue Brief titled "World Oil Production After Year 2000: Business As Usual or Crises?" by Joseph P. Riva, Jr. It is available on National Council for Science and the Environment's web site.

    The paper notes that the amount of recoverable oil may be able to meet current global demand for perhaps another 100 years. Assume that 1,700 billion barrels of recoverable oil remains in the earth's crust and that global demand is currently 27 billion barrels per year. Calculate how long the remaining recoverable oil will last if global oil demand remains constant. Of course, global oil demand is unlikely to remain constant. During the 1990's global oil demand increased about 2% per year. Calculate how long the remaining 1,700 billion barrels of oil will last if global oil demand increases by 2% per year. Comment on the implications of your findings.

  2. Go to the EPA's website describing various success stories with "Pay-As-You-Throw" waste disposal programs.

    Find the community in the list nearest to where you live. Summarize the Pay-As-You-Throw program in that community. What have been the effects of the program? What factors have contributed to its success? Finally, discuss why you think more communities have not adopted similar programs.



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