The supply of non-renewable resources

Research output: Contribution to journal › Journal article › Research › peer-review

Standard

The supply of non-renewable resources. / Daubanes, Julien Xavier; Lasserre, Pierre .

In: Canadian Journal of Economics, Vol. 52, No. 3, 2019, p. 1084-1111.

Research output: Contribution to journal › Journal article › Research › peer-review

Harvard

Daubanes, JX & Lasserre, P 2019, 'The supply of non-renewable resources', Canadian Journal of Economics, vol. 52, no. 3, pp. 1084-1111. https://doi.org/10.1111/caje.12394

APA

Daubanes, J. X., & Lasserre, P. (2019). The supply of non-renewable resources. Canadian Journal of Economics, 52(3), 1084-1111. https://doi.org/10.1111/caje.12394

Vancouver

Daubanes JX, Lasserre P. The supply of non-renewable resources. Canadian Journal of Economics. 2019;52(3):1084-1111. https://doi.org/10.1111/caje.12394

Author

Daubanes, Julien Xavier ; Lasserre, Pierre . / The supply of non-renewable resources. In: Canadian Journal of Economics. 2019 ; Vol. 52, No. 3. pp. 1084-1111.

Bibtex

@article{b517542b10604e8498a98bc109de315d,
title = "The supply of non-renewable resources",
abstract = "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.",
author = "Daubanes, {Julien Xavier} and Pierre Lasserre",
year = "2019",
doi = "10.1111/caje.12394",
language = "English",
volume = "52",
pages = "1084--1111",
journal = "Canadian Journal of Economics",
issn = "0008-4085",
publisher = "Wiley-Blackwell",
number = "3",

}

RIS

TY - JOUR

T1 - The supply of non-renewable resources

AU - Daubanes, Julien Xavier

AU - Lasserre, Pierre

PY - 2019

Y1 - 2019

N2 - 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.

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.

U2 - 10.1111/caje.12394

DO - 10.1111/caje.12394

M3 - Journal article

VL - 52

SP - 1084

EP - 1111

JO - Canadian Journal of Economics

JF - Canadian Journal of Economics

SN - 0008-4085

IS - 3

ER -

ID: 215564945