Import Disruptions, Exhaustible Resources, and Intertemporal Security of Supply

Charles Lindsey ()

Canadian Journal of Economics, 1989, vol. 22, issue 2, 340-63

Abstract: How rapidly should a country exploit a nonrenewable resource if supplementary imports are insecure? With lags in domestic supply adjustment, speeding up extraction will reduce near-term losses in a disruption, but reserves will be depleted more quickly, leading to greater future import dependence. Using a stochastic linear-quadratic model of resource depletion, it is shown that with price rationing of world supply in a disruption, production during undisrupted periods should be speeded up unless costs are rising rapidly with cumulative extraction. With quantity rationing, production should also be speeded up unless the domestic economy is currently nearly self-sufficient.

Date: 1989
References: Add references at CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
http://links.jstor.org/sici?sici=0008-4085%2819890 ... DERAI%3E2.0.CO%3B2-F (text/html)
only available to JSTOR subscribers

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:cje:issued:v:22:y:1989:i:2:p:340-63

Ordering information: This journal article can be ordered from
https://www.economic ... ionen/membership.php

Access Statistics for this article

Canadian Journal of Economics is currently edited by Zhiqi Chen

More articles in Canadian Journal of Economics from Canadian Economics Association Canadian Economics Association Prof. Werrner Antweiler, Treasurer UBC Sauder School of Business 2053 Main Mall Vancouver, BC, V6T 1Z2. Contact information at EDIRC.
Bibliographic data for series maintained by Prof. Werner Antweiler ().