The Hotelling Principle: Autobahn or Cul de Sac?*

G.C. Watkins

The Energy Journal, 1992, vol. 13, issue 1, 1-24

Abstract: The economics of relations between prices and resource stocks has been dominated by the Hotelling Principle. But seemingly little attention has been given to the Principle by the oil and gas industry itself. In this paper the Principle is appraised, some new empirical results based on the value of oil and gas reserves sales are introduced, models which relax more of the Hotelling assumptions are reviewed, and the industry milieu in the context of a Hotelling style framework is discussed. The Principle is seen as affording fundamental theoretical insights, but is not found to cope well with industry realities.

Keywords: Hotelling; Oil and gas reserves; valuation; Depletion; Energy policy (search for similar items in EconPapers)
Date: 1992
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://journals.sagepub.com/doi/10.5547/ISSN0195-6574-EJ-Vol13-No1-1 (text/html)

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:sae:enejou:v:13:y:1992:i:1:p:1-24

DOI: 10.5547/ISSN0195-6574-EJ-Vol13-No1-1

Access Statistics for this article

More articles in The Energy Journal
Bibliographic data for series maintained by SAGE Publications ().