Effects of Technological Change on Non-renewable Resource Extraction and Exploration

Eiji Sawada, Shunsuke Managi

Research output: Contribution to journalArticle

1 Citation (Scopus)

Abstract

This paper provides a non-renewable resource extraction model with both technological change and resource exploration. Especially, we consider two types of technology, extraction technology and exploration technology. We show how these technologies affect efficient non-renewable resource extraction differently. Then, progress in extraction technology drops marginal revenue of extraction and resource price by changing the structure of those dynamics, while progress in exploration technology drops marginal revenue of extraction and resource price remaining the structure of those dynamics. Finally, we illustrate the difference becomes significant when innovative technologies are developed using numerical examples.

Original languageEnglish
Article number1
JournalJournal of Economic Structures
Volume3
Issue number1
DOIs
Publication statusPublished - Dec 1 2014
Externally publishedYes

All Science Journal Classification (ASJC) codes

  • Economics and Econometrics
  • Economics, Econometrics and Finance (miscellaneous)

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