We analyze a dynamic game between a buyer and a seller of an exhaustible resource. The seller chooses resource supply; the buyer can pay a fixed cost to invent a perfect substitute for the resource at any time. In closed-loop equilibrium, the buyer adopts the substitute when the resource is...

This book deals with dynamic timing decisions under uncertainty in the context of exhaustible resources. Adopting the dynamic programming techniqueof decomposing a large and complex problem into smaller and simpler ones, the book offers a unified treatment of the important subjects of...

While fossil energy dependency has declined and energy supply has grown in the postwar world economy, future resource scarcity could cast its shadow on world economic growth soon if energy markets are forward looking. We develop an endogenous growth model that reconciles the current aggregate...