Abstract
It is shown that most exhaustible resource depletion models are ‘diaster-proof’ in that survival is never an issue — consumption can be arbitrarily close to zero. Consequently, the possibility of substitute technologies becoming available allows for a less conservative optimal depletion policy. It is shown that introduction of a subsistence level for consumption substantially alters these results. The possibility of new technologies may dictate more conservative optimal policies. Furthermore, competitive markets cannot be expected to automatically produce optimal policies.
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