Unconventional gas: the economic theory is challenged

Oana Ionescu (1, 2) , Ivan Pearson (3)

1 G2ELab - Laboratoire de Génie Electrique de Grenoble
2 équipe EDDEN
3 IET - JRC Institute for Energy and Transport

This article aims at proposing new ways in which economic analysis can be applied to important issues related to security of energy supply. More particularly, we show how the real options theory may be a convenient tool to analyze the uncertainties surrounding the development of unconventional gas. We lay emphasis on the main economic features related to investment in this highly sophisticated technology which may contribute to address the needs of a world increasingly hungry for energy.

Mots clés: energy security; real options; shale gas

Domaines: Economies et finances

Oana Ionescu, Ivan Pearson. Unconventional gas: the economic theory is challenged. 62nd annual meeting of the french Economic Association, Jun 2013, Aix-en-Provence, France. ⟨halshs-00942335⟩