The Efficient Use of Multiple Sources of a Nonrenewable Resource Under Supply Cost Uncertainty
Resource Use Under Supply Uncertainty
Bibliographic Data
| ID | 19037173 |
|---|---|
| Authors | Gérard Gaudet (0000-0002-6898-0338), Pierre Lasserre (0000-0002-6872-6903, corresponding author) |
| Year | 2011 |
| Volume | 52 |
| Issue | 1 |
| Pages | 245-258 |
| Publication date | 2011-02-01 |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | International Economic Review (JOURNAL) |
| Journal identifiers | ISSN: 0020-6598 • E-ISSN: 1468-2354 |
| Publisher | Wiley (PUBLISHER • GB) |
| DOI | 10.1111/j.1468-2354.2010.00627.x |
| OpenAlex | W2105317534 |
| Language | EN |
| Citations received | 1 |
| References cited | 15 |
Whereas in a deterministic world leaving a high-cost source of a nonrenewable resource untouched as long as a less costly source is available is always efficient, this may not be the case in a stochastic world. Conditions are derived under which it can be efficient to use a risky supply source in order to conserve a cheaper nonrisky source, or to use a costly nonrisky source while a less costly risky source is still available. A supply embargo can be interpreted as a limiting case; the nonrisky source can be reinterpreted as an artificial stockpile
Economics · Environmental economics · Limiting · Natural resource economics · Non-renewable resource · Renewable energy · Stockpile · Computer Science · Economic theories and models · Engineering · Market Dynamics and Volatility · Risk and Portfolio Optimization
| Citations per year | 0.07 |
|---|---|
| Citation span | 2012 - 2012 (1) |
| Highly cited | No |