A New Theory to Forecast the Price of Nonrenewable Energy Resources with Mass and Energy-Capital Conservation Equations. (5th June 2014)

• Record Type: Journal Article
• Authors: Gori, Fabio
• Other Names: Abhary K. Academic Editor.; Demirel Y. Academic Editor.
• Is Part Of: ISRN mechanical engineering. Volume 2014(2014)
• Publication Date: 2014-06-05
• Subjects: Mechanical engineering -- Periodicals; Mechanical engineering; Periodicals; Electronic journals; 621
• DOI: 10.1155/2014/529748
• Languages: English
• ISSNs: 2090-5122

Abstract

Abstract : The mass and energy-capital conservation equations are employed to study the time evolution of mass and price of nonrenewable energy resources, extracted and sold to the market, in case of no-accumulation and no-depletion, that is, when the resources are extracted and sold to the market at the same mass flow rate. The Hotelling rule for nonrenewable resources, that is, an exponential increase of the price at the rate of the current interest multiplied the time, is shown to be a special case of the general energy-capital conservation equation when the mass flow rate of extracted resources is unity. The mass and energy-capital conservation equations are solved jointly to investigate the time evolution of the extracted resources.