Analysis on the Coal Resource Policy Based on the Overlapping-generations Model

Being as the basic energy in China, coal is a exhaustible nonrenewable resource. The short-term behavior of the contemporary using coal resources will produce (negative) inter-generational externality. Based on the overlapping-generations model, the analysis of coal resources policy shows that it is a feasible mode of inter-generational externality utilizing coal resources for the government to take charge of resources tax on coal. Severe coal resources policies are conductive to accumulate more capital, and to improve the situation of coal resources.