Showing 1 - 10 of 116
This study uses the methods of experimental economics to investigate possible causes for the failure of the Hotelling rule for nonrenewable resources. We argue that as long as resource stocks are high enough, producers may choose to (partially) ignore the dynamic component of their production...
Persistent link: https://www.econbiz.de/10014186740
Policies aimed at reducing emissions from fossil fuels may increase climate damages. This 'Green Paradox' emerges if resource owners increase near-term extraction in fear of stricter future policy measures. Hans-Werner Sinn (2008) showed that the paradox occurs when increasing resource taxes are...
Persistent link: https://www.econbiz.de/10014041180
A real options model of resource extraction is considered where management controls both the extraction rates as well as the quality of extracted material earmarked for processing into final product. The minimum quality of material acceptable for processing is called the cutoff grade. If the...
Persistent link: https://www.econbiz.de/10014047479
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)...
Persistent link: https://www.econbiz.de/10014193542
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...
Persistent link: https://www.econbiz.de/10014212229
Uncertainties as to future supply costs of nonrenewable natural resources, such as oil and gas, raise the issue of the choice of supply sources. In a perfectly deterministic world, an efficient use of multiple sources of supply requires that any given market exhausts the supply it can draw from...
Persistent link: https://www.econbiz.de/10014219569
We study how restricting CO2 emissions affects resource prices and depletion over time. We use a Hotelling-style model with two non-renewable fossil fuels that differ in their carbon content (e.g. coal and natural gas) and in addition are imperfect substitutes in final good production. We show...
Persistent link: https://www.econbiz.de/10014224480
We examine a dynamic model of R&D investment by competing firms with an uncertain payout and uncertain time to development success. The effect of competition on R&D investment depends critically on whether firms are able to monitor, and react to, each other's actions. In the absence of...
Persistent link: https://www.econbiz.de/10012951076
In this present work, the authors, after a brief survey of current economic theories of non-renewable resources, propose an alternative mechanism for ore pricing that is consistent with sustainable development.Technological change, technological pluralism, costs and environmental issues are the...
Persistent link: https://www.econbiz.de/10012955771
This paper contributes to the theories commodity prices and exhaustible resources by examining simultaneous optimal resource extraction and dynamic capacity building. I analyze the ways in which random demand process and irreversible capacity options shape the long-term price and volatility path...
Persistent link: https://www.econbiz.de/10013034792