Rexamining the Hotelling Valuation Principle: Empirical Evidence from Canadian Oil and Gas Royalty Trust

摘要: The Hotelling Valuation Principle (HVP) implies that the in situ value of a unit non-renewable resource is equal to current price less cost extraction. required assumptions for this principle are strongly violated oil and gas industry, but despite this, results from previous research mixed, with studies based on market data supporting principle, those basin-aggregate rejecting principle. To address problems choice studies, we test HVP using Canadian royalty trusts. Unlike conventional companies, our tend reject generally find be significantly than predicted by reduced explained negative response real option expand (proxied call prices). These findings consistent argument period rising prices consider, (2000–06), net extraction high relative its expected future growth, production constraints prevent firms fully exploiting price.