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The Economic Cost Of U.S. Oil Conservation

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  • STEPHEN P. A. BROWN
  • HILLARD G. HUNTINGTON

Abstract

"This article examines the costs of U.S. oil conservation by using parameters of five world oil models from a recent Energy Modeling Forum study. Variation in the estimated cost of oil conservation across the models suggests that achieving oil conservation through flexible policies that adjust to market conditions would better serve economic efficiency than would setting government-mandated levels of oil consumption. Additionally, net world oil conservation is likely to be somewhat less than gross U.S. conservation. U.S. oil conservation lowers the world oil price and stimulates non-U.S. oil consumption. Including the gains in non-U.S. oil consumption raises the estimated costs of achieving a given conservation level". Copyright 1994 Western Economic Association International.

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File URL: http://www.blackwell-synergy.com/doi/abs/10.1111/j.1465-7287.1994.tb00433.x
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Bibliographic Info

Article provided by Western Economic Association International in its journal Contemporary Economic Policy.

Volume (Year): 12 (1994)
Issue (Month): 3 (07)
Pages: 42-53

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Handle: RePEc:bla:coecpo:v:12:y:1994:i:3:p:42-53

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Cited by:
  1. Stephen P.A. Brown & Hillard G. Huntington, 2003. "Terms of trade and OECD policies to mitigate global climate change," Economic and Financial Policy Review, Federal Reserve Bank of Dallas.
  2. Stephen P.A. Brown & Hillard G. Huntington, 1996. "Some implications of increased cooperation in world oil conservation," Working Papers 9608, Federal Reserve Bank of Dallas.
  3. Stephen P. A. Brown, 1998. "Global warming policy: some economic implications," Economic and Financial Policy Review, Federal Reserve Bank of Dallas, issue Q IV, pages 26-35.

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