Urban Land And Underground Space Resource Development Intertemporal Market Equilibrium

Along with the development of urbanization, the scarcity of the urban land resources reflected more clearly. At the same time, as a new kind of land resources, the development and utilization of urban underground space have received much attention. Now, research about urban land and underground space only approach the engineering technology, this is not enough for the analysis of the whole situation of urban land and underground space. Therefore, from the perspective of Resource Economics, this paper discusses the dynamic market equilibrium of the utilization of urban land and underground space as non-renewable resources. Then, show the relationship among the reserve base, the cost and the trend of price.In this article we reform the typical model of resource economics and modified part of the assumptions, based on the dynamic economics, there comes the main conclusions. First, the quantity and the expansion of reserve are control variables in this model, which joint decided the optimal conditions of profit maximization. Next, the rent of resources in entire life shaped by the resources initial storage quantity and the development cost function: Initial reserve of land resource in the city is small, the large cost decline as the reserve increase, the price line for the land resource will be U shaped. The initial reserve of urban underground space is large, as the cost is small, the price will increase with time.