2 edition of Exhaustible-resource extraction with capital found in the catalog.
Exhaustible-resource extraction with capital
by Département de science économique et Centre de recherche en développement économique, Université de Montréal in Montréal
Written in English
|Statement||by Pierre Lasserre.|
|Series||Cahier / Département de science économique et Centre de recherche en développement économique,, 8208, Cahier (Université de Montréal. Département de sciences économiques) ;, 8208.|
|LC Classifications||HC55 .L37 1982|
|The Physical Object|
|Pagination||34 p. :|
|Number of Pages||34|
|LC Control Number||82206744|
This property of resource extraction, when combined with the observation that historically exhaustible resource price follows a persistent trendless process, implies that extraction quantities cannot diversify exhaustible resource risk either at short or long by: Figure Future Generations and Exhaustible Natural Resources The current demand D for services of an exhaustible resource is given by the marginal revenue product (MRP). S 1 reflects the current marginal cost of extracting the resource, the prevailing interest rate, and expectations of .
EXHAUSTIBLE RESOURCE EXTRACTION UNDER DEMAND HETEROGENEITY. 1. Introduction. The literature on the extraction of exhaustible resources (Hotelling, ; Dasgupta and Heal ; Pindyck, ) has almost exclusively dealt with the time path of resource extraction and resource prices under the assumption of a single homogenous demand for the. of extraction. Here p is to be interpreted as the net price received after paying the cost of extraction and placing upon the market-a convention to which we shall adhere throughout. The formula (I) P=poeyt fixes the relative prices at different times under free competition. The absolute level, or the value po of the price when t = o, will de-.
Investing Exhaustible Resource Rents and the Path of Consumption model of exhaustible resource extraction optimal growth model including an exhaustible resource and producible capital. The Taxation of Exhaustible Resources Partha Dasgupta, Geoffrey Heal, Joseph E. Stiflitx. NBER Working Paper No. (Also Reprint No. r) Issued in NBER Program(s):Public Economics This paper analyzes the effect of taxation on the intertemporal allocation of an exhaustible resource.
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Publisher(s) Université de Montréal. Département de sciences économiques. Author(s)Cited by: By imposing capacity limitations on extraction or processing, capital used to produce an exhaustible resource gives rise to an intertemporal resource recovery : Pierre Lasserre.
Exhaustible-Resource Extraction with Capital. By Pierre Lasserre. Topics: Non-Renewable Resources, Capital, Investments, Interest Rate Author: Pierre Lasserre. The text then examines the transition from an exhaustible resource-stock to an inexhaustible substitute and the development of a substitute for an exhaustible natural resource, including dispersed ownership of the resource, social optimum, and single monopoly of the resource and its Edition: 1.
aside extraction costs, for the moment), the price of an exhaustible resource should rise over time at roughly the same pace as interest rates. The wide fluctuation in commodity prices experienced in recent years therefore appears to be inconsistent with Hotelling’s by: 2.
With a low capital stock, part of the resource extraction is deferred to the future when the capital stock is higher and consequently, more capital can be allocated to the resource technology. The paper also analyzes the effects of industrialization of developing countries on one of our most important exhaustible resources: by: 2.
Downloadable (with restrictions). How much produced capital would resource-abundant countries have today if they had actually followed the Hartwick Rule (invest resource rents in other assets) over the last 30 years. We employ time series data on investment and rents on exhaustible resource extraction for 70 countries to answer this question.
Sustainable management of an exhaustible resource: a viable control model produced by a technology f(K,r) combining capital and extraction r(t) of the exhaustible resource S(t).
The optimal dynamic control model becomes Hartwick  argues that reinvesting the rents from the exploitation of an exhaustible resource in capital. The main difference between exhaustible resources and renewable resources, like land or water, words, the management of an exhaustible resource has an explicit temporal dimension.
The introduction of time into economic reasoning is a cause of many difficulties. First, the time horizon st be the level of extraction at period Size: KB. extraction of exhaustible resources like oil may be of increasing importance as proposals to tax fossil fuels emerge as part of the climate change debate.
Despite the importance of estimates of the elasticity of U.S. supply for assessing theCited by: 3. extraction policy: ∑ t=0 T st=S0 Second, the extraction plan must maximize the present value of the profits stream obtained through extraction and sales of the ressource.
That is, the extraction policy must be a solution of the following optimization problem: Max∑ t=0 T t 1 1 r t s.t.
∑ t=0 T st S0 where r is the constant level of the File Size: KB. Because of its simplicity, the simple Hotelling model of exhaustible-resource extraction is a useful vehicle to address two themes in economic accounting: (1) Foundational equalities in the calculation of depreciation and in double-entry bookkeeping, or circular flow, apply in both accounting and : Robert D.
Cairns. THE JOURNAL OF POLITICAL ECONOMY Volume 39 APRIL Number 2 TIIE ECONOMICS OF EXHAUSTIBLE RESOURCES CI. THE PECULIAR PROBLEMS OF MINERAL WEALTH ONTEMPLATION of the world's disappearing supplies of minerals, File Size: KB.
Dynamic model with exhaustible resource technology and alternative technology. Finding: optimal resource extraction depend on capital relative to resource stock.
Finding: adoption of alternative technology depend on capital relative to resource stock. Model is then used to analyze effects of industrialization of developing countries. Results: alternative technology is adopted by: 2. Hamilton, Ruta, and Tajibaeva use time series data on investments and rents on exhaustible resource extraction for 70 countries to answer this question.
The results are striking: Gabon, Trinidad and Tobago, and Venezuela would all be as wealthy as the Republic of Korea, while Nigeria would be five times as well off as it is currently. We employ time series data on investment and rents on exhaustible resource extraction for 70 countries to answer this question.
The results are striking: Venezuela, Trinidad and Tobago, and Gabon would all have as much produced capital as South Korea, while Nigeria would have five times its current by: Extraction costs in the theory of exhaustible resources optimal use of an exhaustible resource with more attention to the costs of extraction than has been customary in the literature.
The output and shadow-price implications of optimal extraction are studied under these broader assumptions. capital used in production in period 1 is. With exhaustible resources, can a developing country escape from the poverty trap.
This paper studies the optimal growth of a developing non-renewable natural resource producer, which extracts the resource from its soil and produces a single consumption good with man-made capital.
"Exhaustible-Resource Extraction with Capital," Cahiers de rechercheUniversite de Montreal, Departement de sciences economiques.
Fisher, Anthony C & Peterson, Frederick M, " The Environment in Economics: A Survey," Journal of Economic Literature, American Economic Association, vol.
14(1), pagesMarch. Oil Prices, Exhaustible Resources, and Economic Growth* James D. Hamilton Department of Economics University of California, San Diego email: [email protected] Octo Revised: October 1, ∗Prepared for Handbook of Energy and Climate Change.
I thank Roger Fouquet and Lutz Kilian for helpful comments on an earlier draft. The benchmark model of an exhaustible resource industry provides support for the use of both extraction cost and the resource price as measures of scarcity.
The ‘cheapest first’ rule suggests that deposits with the lowest extraction cost will tend to be extracted first.The simplest version of Hotelling’s theory—more sophisticated versions will be discussed below—suggests that exhaustible resource prices should grow at the real (adjusted for inflation) interest rate.
The price of risk-free U.S. Treasury securities averaged percent in the 20th century (annualized and inflation-adjusted); therefore.An example with a nondurable resource in which the rule also fails to hold is presented. An economy with a fixed average propensity to save is modelled. The monopoly extractor recognizes that resource extraction, by affecting output and hence capital accumulation, affects future by: 5.