Econometrics of exhaustible resource supply: a theory and an application

Technical Report · Sat Jan 01 00:00:00 EST 1983

OSTI ID:5390837

Epple, D

This report takes a major step toward developing a fruitful approach to empirical analysis of resource supply. It is the first empirical application of resource theory that has successfully integrated the effects of depletion of nonrenewable resources with the effects of uncertainty about future costs and prices on supply behavior. Thus, the model is a major improvement over traditional engineering-optimization models that assume complete certainty, and over traditional econometrics models that are only implicitly related to the theory of resource supply. The model is used to test hypotheses about interdependence of oil and natural gas discoveries, depletion, ultimate recovery, and the role of price expectations. This paper demonstrates the feasibility of using exhaustible resource theory in the development of empirically testable models. 19 refs., 1 fig., 5 tabs.

• Research Organization: Resources for the Future, Inc., Washington, DC (USA)
• DOE Contract Number: AC01-80PE70267; AC02-79ET60003
• OSTI ID: 5390837
• Report Number(s): DOE/PE/70267-T26; ON: DE85016773
• Resource Relation: Other Information: Energy and National Security Series: discussion paper D-82R
• Country of Publication: United States
• Language: English

Related Subjects

29 ENERGY PLANNING
POLICY AND ECONOMY
MINERAL RESOURCES
RESOURCE ASSESSMENT
MATHEMATICAL MODELS
CORRELATIONS
ENERGY SUPPLIES
FORECASTING
NATURAL GAS
PETROLEUM
RESOURCE DEPLETION
ENERGY SOURCES
FLUIDS
FOSSIL FUELS
FUEL GAS
FUELS
GAS FUELS
GASES
RESOURCES
290400* - Energy Planning & Policy- Energy Resources