This chapter focuses on dynamic models with exhaustible resources. It discusses protype growth models that incorporate and study the consequences of finitely available exhaustible resources. Some of the problems studied here will also arise in the case of renewable resources, for example, the problem of intergenerational justice. The remainder of this chapter is organized as follows. Section 14.2 surveys growth models with natural resource constraints. Section 14.3 discusses the problem of intergenerational justice. Sections 14.4 and 14.5 present stylized facts of exhaustible resources. Section 14.6 presents the estimation of our growth model.
Keywords: economic growth, growth models, intergenerational equity, natural resources, finite resources, petroleum reserves,