Discontinuous extraction of a nonrenewable resource

This paper examines the sequence of optimal extraction of nonrenewable resources in the presence of multiple demands. We provide conditions under which extraction of a nonrenewable resource may be discontinuous over the course of its depletion.

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Bibliographic Details
Published in:Economics letters 2006, Vol.90 (1), p.6-11
Main Authors: Im, Eric Iksoon, Chakravorty, Ujjayant, Roumasset, James
Format: Article
Language:English
Subjects:
Backstop technology
Demand functions
Dynamic optimization
Energy resources
Environmental economics
Herfindahl principle
Mathematical methods
Modelling
Multiple demands
Natural resources
Oil extraction
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Description
Summary:This paper examines the sequence of optimal extraction of nonrenewable resources in the presence of multiple demands. We provide conditions under which extraction of a nonrenewable resource may be discontinuous over the course of its depletion.
ISSN:0165-1765
1873-7374
DOI:10.1016/j.econlet.2005.06.009