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Technological Advances in Recovery Methods and Efficient Allocation of a Nonrenewable Resource

  • John Rowse
Part of the International Series in Operations Research & Management Science book series (ISOR, volume 18)

Abstract

Most economists would likely agree that technological progress is central to the efficient use of a nonrenewable resource over the long term. Yet advances in petroluem recovery technologies since the mid-1970s suggest that technological progress may also be important over a time span as short as two decades. This paper examines the consequences of underestimating technological advances in recovering natural gas for the Canadian province of British Columbia using a computational model maximizing conventionally-defined social welfare. Mistakes in allocating gas over time due to understimating yield relatively small welfare losses, a result that likely generalizes to other resources.

Keywords

Cost Function Technological Change Technological Progress Consumer Surplus Domestic Demand 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Copyright information

© Springer Science+Business Media New York 1999

Authors and Affiliations

  • John Rowse
    • 1
  1. 1.The University of CalgaryCalgaryCanada

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