Mass and energy-capital conservation equations to study the price evolution of non-renewable energy resources. Part II - Extension to resources sold to the market

The time evolution of the price of resources sold to the market and of the price difference, between sold and extracted resources, is investigated in case of no accumulation of the resources; i.e. when the resources are extracted and sold to the market at the same mass flow rate. The price evolution of sold resources varies with time according to the relation between the price increase factor, PIF, of sold and extracted resources. The price evolutions of sold resources and price difference are investigated according to the relation between extraction rate and interest rate of extracted and sold resources. The price of sold resources and the price difference increase with time if the PIF of sold resources is greater than the PIF of extracted resources and the initial price is greater than the critical price of sold resources, which depends on the initial price of extracted resources and the interest rate of non-extracted and extracted resources. The price of sold resources and the price difference decrease with time if the PIF of sold resources is greater than the PIF of extracted resources and the initial price is smaller than the critical price of sold resources. The other cases are discussed extensively in the paper. (c) 2005 Elsevier Ltd. All rights reserved.