Looking at copper supply: a long-run perspective. [Model incorporating endowment, discovery, development and market equilibrium]

Journal Article · Tue Jan 01 00:00:00 EST 1980 · Mater. Soc.; (United States)

OSTI ID:5163339

Lonoff, M

Some of the concepts and problems involved in modeling long-run supply are reviewed. A framework is outlined and some of the relevant literature referenced. A useful model gives some insights into the process of production, investment, and consumption of a mineral resource. The model proposed in this paper imposes a fairly rigid structure on the market process. The short-run is viewed as governed by behavioral relationships using econometrics and historical data. The long-run is viewed as a solution of a series of optimization problems: optimal exploration and optimal investment. The important features of the long-run model are that it examines the world market as a whole and looks at price as balancing consumption and production. The price must be high enough to induce exploration and investment. Exploration and investment costs depend on the richness of the endowment as well as the impacts of government policy. The long-run supply approach could be applied to copper, to uranium, and to most other metals whose geology has been examined and whose market data have been published. 21 eferences.

• Research Organization: Charles River Associates, Inc., Boston, MA
• OSTI ID: 5163339
• Journal Information: Mater. Soc.; (United States), Vol. 4:2
• Country of Publication: United States
• Language: English

Related Subjects

29 ENERGY PLANNING
POLICY AND ECONOMY
COPPER
RESOURCE ASSESSMENT
METAL INDUSTRY
RESOURCE DEVELOPMENT
MATHEMATICAL MODELS
FORECASTING
INVESTMENT
MARKET
ELEMENTS
INDUSTRY
METALS
TRANSITION ELEMENTS
290200* - Energy Planning & Policy- Economics & Sociology
290400 - Energy Planning & Policy- Energy Resources