Economics of depletable resources: market forces and intertemporal bias

Technical Report · Fri Aug 01 04:00:00 EDT 1975

DOI:https://doi.org/10.2172/6141797· OSTI ID:6141797

Sweeney, J. L.

This paper examines optimal and market-determined extraction patterns for a depletable resource available (at a cost) from many reserves of various grades. It is shown that under a general set of conditions optimal allocations can be supported by a purely competitive market. The concept of a time varying market imperfection function is introduced. Properties of this function are shown to be sufficient to determine whether specific market form will over-extract or under-extract the resource (in comparison to a competitive allocation). Finally, the intertemporal biases associated with depletion allowances, monopolies, externalities, vulnerability costs, and price regulations are analyzed by making use of the market imperfection functions associated with each market structure.

• Research Organization: Federal Energy Administration, Washington, DC (USA)
• OSTI ID: 6141797
• Report Number(s): DOE/TIC-10724
• Country of Publication: United States
• Language: English

Related Subjects

29 ENERGY PLANNING, POLICY, AND ECONOMY
290200* -- Energy Planning & Policy-- Economics & Sociology
290600 -- Energy Planning & Policy-- Nuclear Energy
294000 -- Energy Planning & Policy-- Fossil Fuels
ALLOCATIONS
CHARGES
COMPARATIVE EVALUATIONS
COMPETITION
DEPLETION ALLOWANCES
ECONOMICS
ENERGY SOURCES
FOSSIL FUELS
FUELS
MARKET
MINING
MONOPOLIES
NUCLEAR FUELS
REACTOR MATERIALS
REGULATIONS
RESERVES
RESOURCE DEPLETION
RESOURCES