Does an Exhaustible Resource Usually Have Many Near-Optimal Depletion Paths?

John Rowse

American Journal of Agricultural Economics, 1988, vol. 70, issue 3, 646-653

Abstract: In a recent article Chapman finds that different depletion paths for a highly abstract world oil model yield objective function values close to the optimal level. In this article the near optimality of Chapman's marginal cost pricing solution is explained and many other near-optimal solutions to his competitive model are identified. Furthermore, evidence is cited that multiple near optima emerge from numerical exhaustible resource models incorporating several important real-world complexities and reasons for this occurrence are provided. The principal implications for public policy and economic theory are also discussed.

Date: 1988
References: Add references at CitEc
Citations: View citations in EconPapers (7)

Downloads: (external link)
http://hdl.handle.net/10.2307/1241503 (application/pdf)
Access to full text is restricted to 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:oup:ajagec:v:70:y:1988:i:3:p:646-653.

Access Statistics for this article

American Journal of Agricultural Economics is currently edited by Madhu Khanna, Brian E. Roe, James Vercammen and JunJie Wu

More articles in American Journal of Agricultural Economics from Agricultural and Applied Economics Association Contact information at EDIRC.
Bibliographic data for series maintained by Oxford University Press ().