nep-ene New Economics Papers
on Energy Economics
Issue of 2005‒10‒08
four papers chosen by
Roger Fouquet
Imperial College, UK

  2. Crude Oil and Gasoline Prices in Fiji: Is the Relationship Asymmetric? By B Bhaskara Rao; Gyaneshwar Rao
  3. The Role of Mexico in the First Oil Shortage: 1918-1922, an International Perspective By M. del Mar Rubio Varas
  4. Tax Reform and Environmental Taxation By Gilbert E. Metcalf

  1. By: B Bhaskara Rao (University of the South Pacific); Gyaneshwar Rao (University of the South Pacific)
    Abstract: We use the LSE-Hendry general to specific approach to analyse if US gasoline price adjustments are asymmetric with respect to changes in crude oil prices. Furthermore, we modify some weaknesses in the earlier works by Boreinstein, Cameron and Gilbert (1997) and Bachmeier and Griffin (2003) and shows that if the price adjustment equations are properly specified and estimated, alternative specifications and temporal aggregation of data do not affect the results. Monthly US data are used to show that alternative specifications give equally good results and there is no asymmetry in the US gasoline price adjustments.
    Keywords: Asymmetric price adjustments, Market power, General to specific approach, Error correction models and Gasoline and crude oil prices
    JEL: P Q Z
    Date: 2005–10–02
  2. By: B Bhaskara Rao (University of the South Pacific); Gyaneshwar Rao (University of the South Pacific)
    Abstract: This paper tests and confirms asymmetry in the Fiji gasoline price adjustment equations with respect to changes in the crude oil prices. More satisfactory specifications and estimation are used than in the earlier studies. It is found that two alternative approaches viz., the Granger two-step and the LSE-Hendry general to specific approaches, give similar results. Our results show that oil firms in Fiji seem to adjust gasoline prices twice faster than decrease them.
    Keywords: Crude Oil and Gasoline Prices, Asymmetric Price Response, Rockets and Feathers Hypothesis, Granger Two-Step Estimation, the LSE- Hendry General to Specific Approach.
    JEL: C1 C5 C8
    Date: 2005–10–05
  3. By: M. del Mar Rubio Varas
    Abstract: In 1921 Mexico produced a quarter of world’s petroleum, making the country the second largest producer in the world, but by 1930 it only accounted for 3 per cent of world’s production. To date the discussion has mostly relied on events taking place in Mexico for explaining the decline of the industry. Very little attention has been placed to developments in petroleum industry elsewhere, except Venezuela. Practically no attention has been paid to the reasons for the rise of oil output in Mexico. This neglects the massive changes taking place in the petroleum industry worldwide during the Great War years and its aftermath, and overall ignores the shortage of oil that occurred in the world’s markets between 1918-1921. These are crucial events in order to understand the early rise of the Mexican oil industry and set the basis for a better understanding of the subsequent sudden decline.
    Keywords: World’s petroleum supply, Mexico, First World War, energy shortage
    JEL: N70 N40 N56
    Date: 2005–09
  4. By: Gilbert E. Metcalf
    Abstract: I measure the industry impacts of an environmental tax reform where a carbon tax is used to finance full or partial corporate tax integration. I find that the industry impacts of such a reform are likely to be modest (in the sense of impacts on returns on equity).
    JEL: H2 Q4 Q5
    Date: 2005–10

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