Social Optimality with Resource Depletion: An Investment Project Valuation Model

摘要

The core objective of this research is to arrive at the optimal social extraction path on an investment project level reaching dynamic social optimality with resource depletion, in contrast to the traditional benefit-cost criterion of project feasibility. The focal argument is that marginal social benefits, at equilibrium, must strictly exceed marginal social cost, at equilibrium, in order to correct for historical failures and expected cumulative environmental disturbances away from the optimum social extraction path.