Technology adoption in nonrenewable resource management

Cunha-e-Sá, Maria A., Ana Balcão Reis () and Catarina Roseta-Palma ()

Energy Economics, 2009, vol. 31, issue 2, pages 235-239

Abstract: Technological change has played an important role in models of nonrenewable resource management, since its presence mitigates the depletion effect on extraction costs over time. We formalize the problem of a competitive nonrenewable resource extracting firm faced with the possibility of technology adoption. Based on a quadratic extraction cost function, our results show that the expected net benefits from adoption increase both with the size of the resource stock and with prices. A boundary that separates the region where expected net benefits are positive from the one where they are negative is derived.

Keywords: Nonrenewable; resource; Technology; adoption; Quadratic; cost; Size; of; the; stock (search for similar items in EconPapers)
Date: 2009

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Related works:
Working Paper: Technology Adoption in Nonrenewable Resource Management (2004)
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Persistent link: http://EconPapers.repec.org/RePEc:eee:eneeco:v:31:y:2009:i:2:p:235-239

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