Helium: Investments in the Future.pdf.pdf' (3 MB)
Helium: Investments in the Future
journal contribution
posted on 2009-07-01, 00:00 authored by Dennis EppleDennis Epple, Lester B. LaveThis article develops and implements a method for evaluating an exhaustible resource (helium) whose rate of production is governed by the rate of production of a second exhaustible resource (natural gas). We determine optimum future price and consumption paths, optimal production rates from various sources, and optimal storage policies for a number of scenarios. We conduct a sensitivity analysis to find which of several possible storage policies performs best for a variety of demand growth rates and discount rates.