How do unanticipated discoveries of oil fields affect the oil price?

The Hotelling rule argues that the price for a nonrenewable resource adjusts to the shadow value of the resource, reflecting the remaining availability of the resource. We empirically test the Hotelling rule on the effect of unanticipated oil field discoveries. We do not find evidence for a significant adjustment of the price of crude oil to news about greater resource availability and therefore conclude that the price for crude oil does not follow the theoretically optimal price path.

MoreLess

Year of publication:	2010
Authors:	Leinert, Lisa
Publisher:	Zurich : ETH Zurich, CER-ETH - Center of Economic Research
Subject:	Erschöpfbare Ressourcen \| Fossile Energie \| Ölpreis \| Erdölvorkommen \| Hotelling-Regel \| Theorie \| Nonrenewable Resource \| Oil Price \| Exhaustible Resources \| Information Acquisition

freely available

Full text |

More access options

doi.org

Check Google Scholar

In German libraries (KVK)

I need help

More details

Series:	Economics Working Paper Series ; 10/140
Type of publication:	Book / Working Paper
Type of publication (narrower categories):	Working Paper
Language:	English
Other identifiers:	10.3929/ethz-a-006184358 [DOI] 641472013 [GVK] hdl:10419/171583 [Handle] RePEc:eth:wpswif:10-140 [RePEc]
Classification:	Q31 - Demand and Supply ; Q41 - Demand and Supply ; G14 - Information and Market Efficiency; Event Studies
Source:	EconStor

Persistent link: https://www.econbiz.de/10011753204