Skip to main content
U.S. Department of Energy
Office of Scientific and Technical Information

Principal external costs and benefits of marine mineral recovery

Conference · · Offshore Technol. Conf.; (United States)
OSTI ID:5569055
Investments in resource development by private enterprise will produce socially optimal results in only those instances where: (1) monopoly power by private enterprise and unjustified interference with the market mechanism by government are absent; and (2) external (spillover) benefits and costs are absent. Government interference in order to raise the price of oil has caused a significant divergence between private and social benefits such that over-investment in oil exploration and development has resulted in serious resource misallocation. For marine minerals requiring major technological innovations in deep- sea dredges as a prerequisite to development, the technological external benefits appear to be sufficiently large to constitute a prime facie case for a public subsidy. However, the amount of such a justified subsidy still does not appear sufficient to render deep-sea manganese recovery profitable in the foreseeable future. On the other hand, there are external costs due to marine mineral recovery. These spillover costs are particularly evident in nearshore oil recovery. (16 refs.)
Research Organization:
Calif Univ, Santa Barbara; Brockport State Univ Coll
OSTI ID:
5569055
Report Number(s):
CONF-700464-
Conference Information:
Journal Name: Offshore Technol. Conf.; (United States) Journal Volume: 1:OTC-1178
Country of Publication:
United States
Language:
English