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

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.

MoreLess

Year of publication:	2013
Authors:	Rouillon, Sébastien
Published in:	Energy Economics. - Elsevier, ISSN 0140-9883. - Vol. 37.2013, C, p. 100-103
Publisher:	Elsevier
Subject:	Exhaustible resource \| Optimal policy \| Feedback form \| Hotelling rule

More details

Type of publication:	Article
Classification:	Q30 - Nonrenewable Resources and Conservation. General ; C61 - Optimization Techniques; Programming Models; Dynamic Analysis
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10010635962