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. & 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., & 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
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, 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).
