1
Assistant Professor, University of Allameh Tabatabaie
2
Environmental Economist, MA
3
Environmental Economist
Abstract
The increased growth of oil consumption, particularly in developing countries, has turned oil into a strategic commodity in the world. Therefore, identifying factors affecting supply and demand in oil market and the study of price changes are of a great importance. In this article, we have reconsidered the Hotelling model for optimal extraction of non-renewal recourses with regard to the resource effects and technological advances. The cost and demand functions for non-renewable resources are set up in a way to find a stable growth in a system of simultaneous equations of supply and demand. We have utilized data from OPEC in the period 1980- 2006 to test the model and the functions of supply and demand in a system of simultaneous equations using a 3SLS method. The estimation results indicate that the growth rate of the oil price has remained unchangned over rather a long period of time, which is consistent with the theoretical outcomes predicted by the model.
Emami Meibodi,A , Haghdoost,E and Pakdin,J . (2010). A Test for Growth Stability in Non-renewable Resources, The Case of OPEC. Iranian Journal of Economic Research, 14(42), 149-167.
MLA
Emami Meibodi,A , , Haghdoost,E , and Pakdin,J . "A Test for Growth Stability in Non-renewable Resources, The Case of OPEC", Iranian Journal of Economic Research, 14, 42, 2010, 149-167.
HARVARD
Emami Meibodi A, Haghdoost E, Pakdin J. (2010). 'A Test for Growth Stability in Non-renewable Resources, The Case of OPEC', Iranian Journal of Economic Research, 14(42), pp. 149-167.
CHICAGO
A Emami Meibodi, E Haghdoost and J Pakdin, "A Test for Growth Stability in Non-renewable Resources, The Case of OPEC," Iranian Journal of Economic Research, 14 42 (2010): 149-167,
VANCOUVER
Emami Meibodi A, Haghdoost E, Pakdin J. A Test for Growth Stability in Non-renewable Resources, The Case of OPEC. Iranian Journal of Economic Research. 2010;14(42):149-167 (In Persian).
