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On stockpiling natural resources

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  • Mason, Charles F.

Abstract

Persistent and significant privately held stockpiles of minerals have long been an important empirical regularity in the United States. Such stockpiles would not rationally be held in a traditional Hotelling-style model, though firms could be willing to hold inventories if extraction costs are stock-dependent. More plausibly, if prices are stochastic, and sufficiently volatile, firms have an incentive to hold inventories to smooth production over time.

Suggested Citation

  • Mason, Charles F., 2011. "On stockpiling natural resources," Resource and Energy Economics, Elsevier, vol. 33(2), pages 398-409, May.
    • Handle: RePEc:eee:resene:v:33:y:2011:i:2:p:398-409
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    References listed on IDEAS

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    Cited by:

    1. Mason, Charles F. & Wilmot, Neil A., 2020. "Jumps in the convenience yield of crude oil," Resource and Energy Economics, Elsevier, vol. 60(C).
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    3. Keisaku Higashida & Yasuhiro Takarada, 2012. "Does the Acquisition of Mines Benefit Resource-Importing Countries?," Discussion Paper Series 86, School of Economics, Kwansei Gakuin University, revised Mar 2012.
    4. Zhang, Kuangyuan & Kleit, Andrew N., 2016. "Mining rate optimization considering the stockpiling: A theoretical economics and real option model," Resources Policy, Elsevier, vol. 47(C), pages 87-94.
    5. Daubanes, Julien Xavier & Lasserre, Pierre, 2023. "How should the use of nonrenewables be taxed under a public budget constraint?," Resource and Energy Economics, Elsevier, vol. 73(C).

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