A global planning problem is analyzed for extracting an exhaustible resource like oil when resource extraction - the only source for current consumption - also generates additions to the stock of GHGs that influence the likelihood of hitting a threshold representing climate change. We derive...

The exploration and investment decisions for a resource producing firm are largely irreversible, not now-or-never propositions, and have uncertain future payoffs. As such, we show that, for such decisions to proceed, the expected discounted future returns to these decisions must outweigh the...

This paper considers an optimal control problem for the dynamics of an exhaustible natural resource model, the optimal control being the price over time to maximize the total present value of a parameterized social welfare function under the assumption that a substitute become available at a...

We develop a general equilibrium model of an exhaustible resource market where both the prices and extraction choices are determined endogenously. The model generates price dynamics that are roughly consistent with observed oil and gas forward and option prices as well as with the two-factor...

We translate Hotelling's continuous-time, exhaustible resource extraction Model of 1931 into a linear program of present value extraction cost minimization subject to a stock endowment and period by period demand constraints. The appropriate form of the demand constraints allows for resource...