Chakravorty, Ujjayant; Moreaux, Michel; Tidball, Mabel - In: American Economic Review 98 (2008) 3, pp. 1128-44
A well-known theorem by Herfindahl states that the low-cost nonrenewable resource must be exploited first. Consider resources that are differentiated only by their pollution content. For instance, both coal and natural gas are used to generate electricity, yet coal is more polluting. We show...