Mass conservation equation of non-renewable resources is employed to study the resources remaining in the reservoir according to the extraction policy. The energy conservation equation is transformed into an energy-capital conservation equation. The Hotelling rule is shown to be a special case of the general energy-capital conservation equation when the mass flow rate of extracted resources is equal to unity. Mass and energy-capital conservation equations are then coupled and solved together. It is investigated the price evolution of extracted resources. The conclusion of the Hotelling rule for non-extracted resources, i.e. an exponential increase of the price of non-renewable resources at the rate of current interest, is then generalized. A new parameter, called "Price Increase Factor", PIF, is introduced as the difference between the current interest rate of capital and the mass flow rate of extraction of non-renewable resources. The price of extracted resources can increase exponentially only if PIF is greater than zero or if the mass flow rate of extraction is lower than the current interest rate of capital. The price is constant if PIF is zero or if the mass flow rate of extraction is equal to the current interest rate. The price is decreasing with time if PIF is smaller than zero or if the mass flow rate of extraction is higher than the current interest rate. (c) 2005 Elsevier Ltd. All rights reserved.

Gori, F. (2006). Mass and energy-capital conservation equations to study the price evolution of non-renewable energy resources. Part I-Generalization of the Hotelling rule. APPLIED THERMAL ENGINEERING, 26(14-15), 1746-1750 [10.1016/j.applthermaleng.2005.05.020].

Mass and energy-capital conservation equations to study the price evolution of non-renewable energy resources. Part I-Generalization of the Hotelling rule

GORI, FABIO
2006-01-01

Abstract

Mass conservation equation of non-renewable resources is employed to study the resources remaining in the reservoir according to the extraction policy. The energy conservation equation is transformed into an energy-capital conservation equation. The Hotelling rule is shown to be a special case of the general energy-capital conservation equation when the mass flow rate of extracted resources is equal to unity. Mass and energy-capital conservation equations are then coupled and solved together. It is investigated the price evolution of extracted resources. The conclusion of the Hotelling rule for non-extracted resources, i.e. an exponential increase of the price of non-renewable resources at the rate of current interest, is then generalized. A new parameter, called "Price Increase Factor", PIF, is introduced as the difference between the current interest rate of capital and the mass flow rate of extraction of non-renewable resources. The price of extracted resources can increase exponentially only if PIF is greater than zero or if the mass flow rate of extraction is lower than the current interest rate of capital. The price is constant if PIF is zero or if the mass flow rate of extraction is equal to the current interest rate. The price is decreasing with time if PIF is smaller than zero or if the mass flow rate of extraction is higher than the current interest rate. (c) 2005 Elsevier Ltd. All rights reserved.
2006
Pubblicato
Rilevanza internazionale
Articolo
Sì, ma tipo non specificato
Settore ING-IND/10 - FISICA TECNICA INDUSTRIALE
English
Con Impact Factor ISI
Hotelling rule; non-renewable resources; mass conservation; energy conservation; extraction policy; extracted resources; price evolution.
Gori, F. (2006). Mass and energy-capital conservation equations to study the price evolution of non-renewable energy resources. Part I-Generalization of the Hotelling rule. APPLIED THERMAL ENGINEERING, 26(14-15), 1746-1750 [10.1016/j.applthermaleng.2005.05.020].
Gori, F
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/2108/51611
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