202402241536 A renewable stock constrained by a non-renewable stock
#newAn 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
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Meadows, D. H., & Wright, D. (2011). Thinking in systems: A primer (Nachdr.) (pp. 60). Chelsea Green Pub. ↩