Economics of depletable resources: market forces and intertemporal bias. [Introduction of Market Imperfection Function]

Technical Report · Wed Jun 30 04:00:00 EDT 1976

OSTI ID:7240659

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 of a depletable resource 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 overextract or underextract 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. (auth)

• Research Organization: Federal Energy Administration, Washington, D.C. (USA)
• OSTI ID: 7240659
• Report Number(s): PB-255623; FEA/B-76/028
• Country of Publication: United States
• Language: English

Related Subjects

29 ENERGY PLANNING, POLICY, AND ECONOMY
290200* -- Energy Planning & Policy-- Economics & Sociology
290400 -- Energy Planning & Policy-- Energy Resources
ALLOCATIONS
CAPITAL
CHARGES
CONSUMPTION RATES
ECONOMICS
ENERGY MODELS
ENERGY SOURCES
INVESTMENT
MARKET
MINING
OPTIMIZATION
REGULATIONS
RESERVES
RESOURCES
TIME DEPENDENCE