Economics of Fossil Fuel Supply

  • Subhes C. Bhattacharyya


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.


Investment Decision Exploration Activity Royalty Rate Fixed Carbon Content Differential Rent 


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Copyright information

© Springer-Verlag London Limited 2011

Authors and Affiliations

  • Subhes C. Bhattacharyya
    • 1
  1. 1.Centre for Energy, Petroleum and Mineral, Law and PolicyUniversity of DundeeDundeeUK

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