S.v. Ciriacy Wantrup (my "boss"*) wrote this paper [PDF] in 1944. It begins with a useful, thorough (and perhaps novel for the time) description of the differences between stock resources (e.g., coal) and flow resources (e.g., timber) and how to optimally harvest these resources to maximize their economic value. In this discussion, Wantrup provides an interesting and informative discussion of the different ways in which "conservation" and "depletion" might change over time and with respect to expectations of future events, risk and uncertainty. He then goes on to elaborate on the impact of different taxes (e.g., on current revenues, present value, etc.) on harvest decisions.
This paper -- like many of Wantrup's writings -- is still relevant: We are still interested in the effects of government policy on natural resources (oil, fisheries, etc.) and especially on "manmade" resources such as carbon, ecosystem services, etc. Wantrup's discussion of the tendency for policies to change with the ebb and flow of the economy and politics is especially relevant.
Bottom Line: Read this paper is you are interested in the role of taxation policy on the use of resources and general social welfare.
* Click here to read prior posts in which I discuss Wantrup's other papers. As a "Wantrup Fellow," I am doubly lucky: I have a job AND a brilliant (if deceased) boss!
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