Fundamental Economics of Depletable Energy Supply

In this paper, we first present and discuss the basic logic underlying all neoclassical economic theories of "optimal" energy supply: maximization of the present value of some stream of economic returns. We then discuss how the economic theory of optimal resource depletion has evolved since Hotelling's classic 1931 article. We also consider the power of the theory to support improved empirical understanding of actual behavior. Our discussion of empirical literature indicates that this work has so far provided only limited empirical understanding.


Issue Date:
2003
Publication Type:
Working or Discussion Paper
PURL Identifier:
http://purl.umn.edu/10842
Total Pages:
30
JEL Codes:
Q4
Series Statement:
Discussion Paper 03-01




 Record created 2017-04-01, last modified 2017-04-04

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