EconPapers    
Economics at your fingertips  
 

Input Demand under Joint Energy and Output Prices Uncertainties

Moawia Alghalith, Xu Guo (), Wing-Keung Wong () and Lixing Zhu

MPRA Paper from University Library of Munich, Germany

Abstract: In this paper, we analyze the impacts of joint energy and output prices uncertainties on the inputs demands in a mean-variance framework. We find that an increase in expected output price will surely cause the risk averse firm to increase the inputs’ demand, while an increase in expected energy price will surely cause the risk averse firm to decrease the demand for energy and increase the demand for non-risky inputs. Further, increasing the variance of energy price will necessarily cause the risk averse firm to decrease the demands for the non-risky inputs. Furthermore, we investigate the two cases with only uncertain energy price and only uncertain output price. In the case with only uncertain energy price, we find that the uncertain energy price has no impact on the demands for the non-risky inputs.

Keywords: Price Uncertainty; Mean-Variance; Energy price, Risk (search for similar items in EconPapers)
JEL-codes: C00 G11 (search for similar items in EconPapers)
Date: 2013-12-12
New Economics Papers: this item is included in nep-ene
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
https://mpra.ub.uni-muenchen.de/52368/1/MPRA_paper_52368.pdf original version (application/pdf)

Related works:
Journal Article: Input Demand Under Joint Energy and Output Prices Uncertainties (2017) Downloads
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:pra:mprapa:52368

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().

 
Page updated 2022-11-22
Handle: RePEc:pra:mprapa:52368