HARRY CLARKE
Some developing countries are rapidly exploiting their natural resource bases to increase incomes and achieve development goals. When increased incomes eventuate, stocks of certain resources currently being depleted (e.g. rainforest, city parkland) may attain enhanced future values. This is so if demands for the utilization of amenity services based on these stocks increase with development--if amenities are a luxury good. This paper analyzes the tradeoff between development and conservation goals in a model determining optimal savings and depletion time paths.