IDEAS home Printed from https://ideas.repec.org/p/qed/wpaper/746.html
   My bibliography  Save this paper

Measuring Resource Scarcity in Non-Renewable Resources with Inequality Constrained Estimation

Author

Listed:
  • Perry A. Sadorsky

Abstract

This paper uses annual Canadian exploration data to estimate a multiple-output translog exploration cost function. A new definition of depletion is introduced, and its estimated coefficient is found to be statistically significant. Monte Carlo integration ensures the estimated cost function satisfies concavity and monotonicity. The fitted cost function parameters are used to obtain estimates of marginal costs of exploration for oil and gas. Our estimated marginal exploration costs are smaller than previous studies because we allow for technical progress which offsets the depletion effects. We find evidence of a 10% per year increase in scarcity along the trend. For natural gas, the number is 1.8%.

Suggested Citation

  • Perry A. Sadorsky, 1989. "Measuring Resource Scarcity in Non-Renewable Resources with Inequality Constrained Estimation," Working Paper 746, Economics Department, Queen's University.
    • Handle: RePEc:qed:wpaper:746
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:qed:wpaper:746. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Mark Babcock (email available below). General contact details of provider: https://edirc.repec.org/data/qedquca.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.