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A simple characterization of the optimal extraction policy of a non-renewable resource when extraction cost is stock-independent

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  • Rouillon, Sébastien

Abstract

This note provides a simple characterization of the optimal extraction of a non-renewable resource. The proposed formula determines the solution in its feedback form. It is shown to hold for a large class of models, as long as the utility is stock-independent.

Suggested Citation

  • Rouillon, Sébastien, 2013. "A simple characterization of the optimal extraction policy of a non-renewable resource when extraction cost is stock-independent," Energy Economics, Elsevier, vol. 37(C), pages 100-103.
    • Handle: RePEc:eee:eneeco:v:37:y:2013:i:c:p:100-103
    DOI: 10.1016/j.eneco.2013.02.002
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    6. J. P. Rincón-Zapatero & J. Martínez & G. Martín-Herrán, 1998. "New Method to Characterize Subgame Perfect Nash Equilibria in Differential Games," Journal of Optimization Theory and Applications, Springer, vol. 96(2), pages 377-395, February.
    7. Jeffrey A. Krautkraemer, 1998. "Nonrenewable Resource Scarcity," Journal of Economic Literature, American Economic Association, vol. 36(4), pages 2065-2107, December.
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    More about this item

    Keywords

    Exhaustible resource; Optimal policy; Feedback form; Hotelling rule;
    All these keywords.

    JEL classification:

    • Q30 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - General
    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis

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