ABSTRACT
This book contains five essays that use dynamic economic theory to study the processes by which energy sources are discovered, developed, priced, supplied, and stored. Dynamic economic theory is required for analyzing these processes because of the intertemporal nature of the economic problems that confront both the owners of energy sources and the customers they serve. Owners of energy sources face decisions about how rapidly to extract and sell their resources. Because energy sources are typically both durable and exhaustible, owners have strong incentives to care about the likely future time paths of the prices of their sources of energy and competing sources, as well as about the paths of cost factors such as tax rates.
