search query: @author Boyd, R. / total: 7
reference: 6 / 7
| Author: | Barthold, T. Boyd, R. |
| Title: | A note on resource value and marketability |
| Journal: | Energy Economics
1988 : JAN, VOL.10:1, p.79-83 |
| Index terms: | |
| Language: | eng |
| Abstract: | The utilization of resource deposits is examined when high transport costs prevent sales in the current world market. Assuming that the deposit is relatively small, the analysis establishes that a deposit with large current transport costs but used by some finite date generally has a positive shadow price beneath the current world market value, even if its present profitability is nil. The appropriate shadow price to place on the resource is the value of an American-style call option on the resource with a zero exercise price and no expiration date. |
SCIMA