The contribution of L. C. Gray to the economic theory of exhaustible natural resources and its roots in the history of economic thought

The paper opens with an assessment of natural resources economics up to 1913–14 when Gray published his two pioneering articles in natural resources economics (Part I). An in-depth study of Gray, weighing his contribution to the microeconomic theory of the mine and the macroeconomic theory of conservation against current literature, constitutes the main body of the paper (Part II). Gray and Hotelling's contributions to the theory of the mine are compared (Part III). The paper concludes with a comparison drawn between the author's findings and the scant attention previously paid to Gray's contributions to natural resources economics.“So far as I know, this is the first attempt to apply economic theory to this particular problem of conservation.” (H. C. Taylor, unpublished letter to C. R. Van Hise, May 23, 1913, a reference to Gray's “Economic Possibilities of Conservation”).