TechWorkRamblings

by Mike Kalvas

202402241536 A renewable stock constrained by a non-renewable stock

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An interesting two-stock system arises when there is a renewable stock constrained by a non-renewable stock. This system differs from one-stock systems because it is constrained by its surroundings. An example of this type of system is an oil economy. The non-renewable stock of oil, its production, and its long-term availability constrains the stock of capital in the industry. Investment — a renewable source of capital — and oil extraction and sales increase the capital of the oil industry, but the non-renewable availability will eventually limit the growth of that capital to the point where no investment will happen and the industry will dry up when oil is gone.1


  1. Meadows, D. H., & Wright, D. (2011). Thinking in systems: A primer (Nachdr.) (pp. 60). Chelsea Green Pub.