Wednesday, 3 September 2008

Why oil is like pistachio nuts

Over at Anti Dismal, Don Boudreaux demonstrates (using pistachio nuts) why we'll never actually run out of oil.  What happens, you see,  is that unless technological improvement saves the day, what's left (whether it's oil or gold or pistachio nuts) simply becomes increasingly difficult to extract.

And no, this isn't a 'wriggle.'  It's actually an important lesson in resource economics.

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