This paper provides the theoretical explanation and Monte Carlo experiments of using a modified version of Durbin-Watson ( D W ) statistic to test an 1 ( 1 ) process against I ( d ) alternatives, that is, integrated process of order d, where d is a fractional number. We provide the exact order...

This paper provides an empirical assessment of the overall incentives generated by taxes with respect to the choice between extraction and recycling of basic materials in Canada. We calculate measures of the overall impact of the Canadian tax system on the incremental cost of (i) producing...

The issue of sustainability of natural capital and implications for economic growth ranks high in the interests of both policy makers and the general public, as manifested by the intense debate on Canada's ratification of the Kyoto accord. In this chapter, Nancy Olewiler makes an important...

We consider a competitive extraction industry comprising many small firms, each with a slightly different quality of mineral holdings. With "rapidly" declining quality of holding per firm, we observe rent declining over an interval. We then take up the familiar planning model and isolate the tax...

We study the effectiveness of climate change policy in a model with multiple non-renewable resources that differ in their carbon content. We find that, when allowing some time between announcement and implementation of a cap on carbon dioxide emissions, emissions from non-renewable energy...

This study provides an empirical analysis of the extent to which ongoing technological change has offset the effect of ongoing depletion on the cost of finding additional reserves of natural gas. In the process, we develop a new index of technological change for exploration and development (E&D)...

This paper is concerned with the determination of the optimal time horizon for the cake-eating problem under uncertainty. It is shown that if the uncertain exhaustible resource stock is a discrete random variable admitting at most a finite number of values, the optimal planning horizon is...

We introduce learning into a Hotelling model of a non-renewable resource market. By combining learning and scarcity we add significantly to the dynamics implied by learning and substantially enhance the volatility of commodity prices. In our learning model we show how a self confirming...

This descriptive study discusses the effects of increases in domestic gas prices on the Russian gas market. Domestic natural gas prices have remained below their long-run marginal cost for more than a decade since Russia’s movement toward a market economy in 1991. As a result, the ability of...