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on Energy Economics |
| By: | John Hartwick (Queen's University) |
| Abstract: | Each extractor has a distinct quadratic extraction cost and faces a linear industry demand schedule. We observe that the open loop and closed loop solutions are the same if initial stocks are such that each competitor is extracting in every period in which her competitors are extracting. |
| Keywords: | oligopoly extractors, closed loop solution |
| JEL: | D43 Q32 |
| Date: | 2006–09 |
| URL: | http://d.repec.org/n?u=RePEc:qed:wpaper:1095&r=ene |
| By: | Bazhanov, Andrei |
| Abstract: | A normative analysis of the problem of optimal extraction of a non-renewable resource is considered. The economy depends on the essential non-renewable resource and the rate of the resource extraction increases over time. At some instant the government gradually switches to a sustainable (in sense of non-decreasing consumption over time) pattern of the resource extraction. Different approaches are offered for the construction some curves of switching to decreasing paths of the resource depletion. Consumption paths have diverse behavior patterns along these curves, including a path of unlimited growth. A new approach to the Rawlsian maximin criterion which allows for growth of consumption is offered. |
| Keywords: | Non-renewable resource; Intergenerational justice; Hartwick rule; Optimal path of extraction; Generalized Rawlsian criterion |
| JEL: | Q38 Q32 |
| Date: | 2006–10–08 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:469&r=ene |
| By: | Ruiz, Juan |
| Abstract: | The price of oil has had a marked increase since 2002. The prices of Brent and West Texas Intermediate (WTI) crude -the two main benhcmarks of the market- have surpassed their historical maximum reached in 1991 during the first Gulf War, though, in real terms, the price of oil is still below that of 1980. This increase in prices, and the risk of further increments, justifies an evaluation of the consequences on global growth and inflation. This article presents a brief review of the recent evolution of the price of oil and tries to identify the main factors behind its increase. In addition, some factors that can influence the future evolution of the price of oil in the short and long run are presented, as well as an estimation of the effect of a further increase in the price of oil over growth and inflation for the main industrial economies. |
| Keywords: | Oil price; growth; inflation; global economy |
| JEL: | E17 E66 Q43 |
| Date: | 2004–12–16 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:431&r=ene |
| By: | Tokgoz, Simla; Elobeid, Amani |
| Abstract: | This study analyzes the impact of price shocks in three input and output markets critical to ethanol: gasoline, corn, and sugar. We investigate the impact of these shocks on ethanol and related agricultural markets in the United States and Brazil. We find that the composition of a country’s vehicle fleet determines the direction of the response of ethanol consumption to changes in the gasoline price. We also find that a change in feedstock costs affects the profitability of ethanol producers and the domestic ethanol price. In Brazil, where two commodities compete for sugarcane, changes in the sugar market affect the competing ethanol market. |
| Keywords: | agricultural markets, energy, ethanol, renewable fuels. |
| Date: | 2006–11–01 |
| URL: | http://d.repec.org/n?u=RePEc:isu:genres:12691&r=ene |
| By: | Feridun, Mete |
| Abstract: | This article aims at investigating the impact of trade openness on pollution and resource depletion in Nigeria. Results indicate that pollution is positively related to trade intensity and real GDP per square kilometer, while capital to labor ratio and GNP are negatively related to pollution. In addition, strong evidence suggests that trade intensity, real GDP per square kilometer and GNP are positively related to environmental degradation indicating that the technique, scale, and total effects of liberalization are detrimental to the environment. The composition effect of trade liberalization on natural resource utilization,on the other hand, is beneficial. A number of policy implications emerge from the study for Nigeria as well as other developing economies. |
| Keywords: | development; environmental degradation; environmental Kuznets Curve; trade liberalization |
| Date: | 2006–11–08 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:731&r=ene |
| By: | Claude, Denis; Tidball, Mabel |
| Abstract: | This paper examines the optimal environmental policy in a mixed oligopoly when pollution accumulates over time. Specifically, we assume quantity competition between several private firms and one partially privatized firm. The optimal emission tax is shown to be independent of the weight the privatized firm puts on social welfare. The optimal tax rule, the accumulated stock of pollution, firms' production paths and profit streams are identical irrespective of the public firm's ownership status. |
| Keywords: | Mixed Oligopoly; Pollution Control; Markovian Taxation. |
| JEL: | L51 Q58 L33 |
| Date: | 2006–07–10 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:776&r=ene |
| By: | Sterner, Thomas; Muller, Adrian |
| Abstract: | In permit trading systems, free initial allocation is common practice. A recent example is the European Union Greenhouse Gas Emission Trading Scheme (EU-ETS). We investigate effects of different free allocation schemes on incentives and identify significant perverse effects on abatement and output employing a simple multi-period model. Firms have incentives for strategic action if allocation in one period depends on their actions in previous ones and thus can be influenced by them. These findings play a major role where trading schemes become increasingly popular as environmental or resource use policy instruments. This is of particular relevance in the EU-ETS, where the current period is a trial-period before the first commitment period of the Kyoto protocol. Finally, this paper fills a gap in the literature by establishing a consistent terminology for initial allocation. |
| Date: | 2006–10–26 |
| URL: | http://d.repec.org/n?u=RePEc:rff:dpaper:dp-06-49&r=ene |
| By: | Wagner, Martin (Department of Economics and Finance, Institute for Advanced Studies, Vienna, Austria) |
| Abstract: | In recent years many empirical studies of environmental Kuznets curves employing unit root and cointegration techniques have been conducted for both time series and panel data. When using such methods several issues arise: the effects of a short time dimension, in a panel context the effects of cross-sectional dependence, and the presence of nonlinear transformations of integrated variables. We discuss and illustrate how ignoring these problems and applying standard methods leads to questionable results. Using an estimation approach that addresses the second and third problem we find no evidence for an inverse U-shaped relationship between GDP and CO2 emissions. |
| Keywords: | Carbon Kuznets Curve, Panel data, Unit roots, Cointegration, Cross-sectional dependence, Nonlinear transformations of regressors |
| JEL: | C12 C13 Q20 |
| Date: | 2006–11 |
| URL: | http://d.repec.org/n?u=RePEc:ihs:ihsesp:197&r=ene |