Table of Contents
ISRN Mechanical Engineering
Volume 2014 (2014), Article ID 529748, 37 pages
http://dx.doi.org/10.1155/2014/529748
Review Article

A New Theory to Forecast the Price of Nonrenewable Energy Resources with Mass and Energy-Capital Conservation Equations

Department of Industrial Engineering, University of Rome “Tor Vergata,” Via del Politecnico 1, 00133 Rome, Italy

Received 31 December 2013; Accepted 1 April 2014; Published 5 June 2014

Academic Editors: K. Abhary and Y. Demirel

Copyright © 2014 Fabio Gori. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

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.