The A test Test of for Ggrowth Sstability in Nnon-renewable Rresources, (a Hotelling model revised) The case Case study of OPEC oil

The increased growth of oil consumption in the world, particularly the growth of consumption of non-renewable resources in the developing countries, has turned oil into a strategic commodity in the world. Based on thisTherefore, recognition ofidentifying factors elements affecting supply and demand in oil market and the study of price changes in this market areis of a great importance. In this article, we have reconsidered the Hotelling model for “optimal extraction of non-renewal recourses” with regard to the advantages of resource effects and technological advances. The functions of cost and demand functions for non-renewable resources is supposedare set up in a way to find as the solution to the Hotelling question could cause a stable stability growth in a system of simultaneous equations of supply and demand. In this article Wwe have utilized data from OPEC in the period of 1980- to 2006 to test the model and the functions of supply and demand in a system of simultaneous equations is estimated inusing a 3SLS method. The outcomes of theseestimation results indicate that assessments (indicating that the growth rate of the oil price has remained zero unchangned over rather a long period of time, which is) go with consistent with the theoretical outcomes predicted by the model.