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

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  • Eiji Sawada
  • Shunsuke Managi

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. Copyright E. Sawada, S. Managi; licensee Springer 2014

Suggested Citation

  • Eiji Sawada & Shunsuke Managi, 2014. "Effects of Technological Change on Non-renewable Resource Extraction and Exploration," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 3(1), pages 1-12, December.
    • Handle: RePEc:spr:jecstr:v:3:y:2014:i:1:p:1-12:10.1186/2193-2409-3-1
    DOI: 10.1186/2193-2409-3-1
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    Cited by:

    1. Sugiawan, Yogi & Managi, Shunsuke, 2019. "New evidence of energy-growth nexus from inclusive wealth," Renewable and Sustainable Energy Reviews, Elsevier, vol. 103(C), pages 40-48.

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