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Economics of Fossil Fuel Supply

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Abstract

This chapter provides an introduction to the economic concepts related to fossil fuel supply. The chapter presents a typical chain of activities in the fossil fuel supply, namely exploration, development and production and discusses the relevant economic decision-making issues for each activity. It also considers the influence of government intervention on the investment decisions through fiscal instruments.

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Notes

  1. 1.

    This model is widely used in the business literature to analyse the relations between the host state and the multi-national companies. See for example, Eden and Molot (2002) and Ramamurti (2001) for further details.

  2. 2.

    Read more on coal extraction in Edgar (1983). See also WCI (2005).

  3. 3.

    There is a well-developed literature on fiscal systems for energy and mining activities. See for example, Nakhle (2008), Tordo (2007), Otto et al. (2006) and Johnston (1998). Nakhle (2009) provides a succinct review.

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Further reading

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  • Adelman MA (1995) The Genie out of the bottle—world oil since 1970. Cambridge University Press, London

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  • Dahl C (2004) International energy markets: understanding pricing, policies and profits. Pennwell Books, Tulsa

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  • Johnston D, Johnston D (2002) Economic modelling and risk analysis handbook. CEPMLP, Dundee

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  • World Coal Institute (2005) The coal resource: A comprehensive overview of coal. World Coal Institute, London

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Authors and Affiliations

  1. Centre for Energy, Petroleum and Mineral, Law and Policy, University of Dundee, Dundee, UK

    Subhes C. Bhattacharyya

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  1. Subhes C. Bhattacharyya
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© 2011 Springer-Verlag London Limited

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Bhattacharyya, S.C. (2011). Economics of Fossil Fuel Supply. In: Energy Economics. Springer, London. https://doi.org/10.1007/978-0-85729-268-1_8

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  • DOI: https://doi.org/10.1007/978-0-85729-268-1_8

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  • Publisher Name: Springer, London

  • Print ISBN: 978-0-85729-267-4

  • Online ISBN: 978-0-85729-268-1

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