|
EconStor >
ifo Institut – Leibniz-Institut für Wirtschaftsforschung an der Universität München >
CESifo Working Papers, CESifo Group Munich >
Please use this identifier to cite or link to this item:
http://hdl.handle.net/10419/52473
|
| | |
| Title: | | Depletion and development: Natural resource supply with endogenous field opening  |
| Authors: | | Venables, Anthony J. |
| Issue Date: | | 2011 |
| Series/Report no.: | | CESifo working paper: Resource and Environment Economics 3608 |
| Abstract: | | This paper develops a model in which supply of a non-renewable resource can adjust through two margins: the rate of depletion and the rate of field opening. Faster depletion of existing fields means that less of the resource can ultimately be extracted, and optimal depletion of open fields follows a (modified) Hotelling rule. Opening a new field involves sinking a capital cost, and the timing of field opening is chosen to maximize the present value of the field. Output dynamics depend on both depletion and field opening, and supply responses to price changes are studied. In contrast to Hotelling, the long run equilibrium rate of growth of prices is independent of the rate of interest, depending instead on characteristics of demand and geologically determined supply. |
| Subjects: | | non-renewable resource depletion exhaustible Hotelling fossil fuel carbon tax |
| JEL: | | D90 Q30 Q40 Q50 |
| Document Type: | | Working Paper |
| Appears in Collections: | | CESifo Working Papers, CESifo Group Munich
|
| |
| | |
Download bibliographical data as:
BibTeX
|
| |
Share on:http://hdl.handle.net/10419/52473
|
Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.
|