Optimal extraction with grade variation and endogenous reserves
This paper describes and analyzes a simple model of a competitive firm engaged in non-petroleum resource extraction. It allows for grade variation within a mineral deposit, treats as endogenous the determination of reserves and distinguishes between ore throughput and metal output. The central resul...
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| Main Authors: | , |
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| Format: | text |
| Language: | English |
| Published: |
Institutional Knowledge at Singapore Management University
1984
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| Subjects: | |
| Online Access: | https://ink.library.smu.edu.sg/soe_research/1767 |
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| Institution: | Singapore Management University |
| Language: | English |
| Summary: | This paper describes and analyzes a simple model of a competitive firm engaged in non-petroleum resource extraction. It allows for grade variation within a mineral deposit, treats as endogenous the determination of reserves and distinguishes between ore throughput and metal output. The central result is a characterization of the optimal intertemporal extraction profile. A numerical example illustrates the main principle of quality selection. |
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