The supply of non‐renewable resources.
There exists no formal treatment of non‐renewable resource (NRR) supply, systematically deriving quantity as function of price. We establish instantaneous restricted (fixed reserves) and unrestricted NRR supply functions. The supply of a NRR at any date and location depends not only on the local con...
| Published in: | Canadian Journal of Economics Vol. 52; no. 3; pp. 1084 - 1112 |
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| Main Authors: | , |
| Format: | Article |
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Wiley-Blackwell
Aug2019
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| Subjects: | |
| Online Access: | View this record in EBSCOhost |
| fields | @attributes: recordID: 1 pdfLink: plink: https://search.ebscohost.com/login.aspx?direct=true&db=ssf&AN=138296906&site=ehost-live header: @attributes: shortDbName: ssf uiTerm: 138296906 longDbName: Social Sciences Full Text (H.W. Wilson) uiTag: AN controlInfo: bkinfo: jinfo: jid: 00084085 CJE jtl: Canadian Journal of Economics issn: 00084085 maglogo: Y pubinfo: dt: Aug2019 vid: 52 iid: 3 pid: 480 pub: Wiley-Blackwell artinfo: ui: 138296906 10.1111/caje.12394 ppf: 1084 ppct: 28 formats: tig: atl: The supply of non‐renewable resources. aug: au: Daubanes, Julien Lasserre, Pierre affil: IFRO, University of Copenhagen, CESifo ESG, Université du Québec à Montréal, CIRANO, CIREQ su: Supply & demand Economic demand Wages Price increases Spacetime sug: subj: Supply & demand Economic demand Wages Price increases Spacetime ab: There exists no formal treatment of non‐renewable resource (NRR) supply, systematically deriving quantity as function of price. We establish instantaneous restricted (fixed reserves) and unrestricted NRR supply functions. The supply of a NRR at any date and location depends not only on the local contemporary price of the resource but also on prices at all other dates and locations. Besides the usual law of supply, which characterizes the own‐price effect, cross‐price effects have their own law. They can be decomposed into a substitution effect and a stock compensation effect. We show that the substitution effect always dominates: a price increase at some point in space and time causes NRR supply to decrease at all other points. Our new—although orthodox—setting takes into account not only NRR supply limitations but also the heterogeneity of NRR deposits, and the endogeneity of their development and opening. Our analysis extends to NRRs the partial‐equilibrium analysis of demand and supply policies. Thereby, it provides a generalization of results about policy‐induced changes on NRR markets. pubtype: Academic Journal doctype: Article src: R language: English refInfo: copyright: @attributes: flag: N holdings: @attributes: islocal: N |
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