IDEAS home Printed from https://ideas.repec.org/a/eee/enepol/v62y2013icp959-965.html
   My bibliography  Save this article

OPEC: How to transition from black to green gold

Author

Listed:
  • Wittmann, Nadine

Abstract

Global discussions on the reduction of Co2 emissions and the increasing interest in alternative energy sources and production technologies have started to concern oil exporting nations. International discussions on projects such as Desert Tec might also have sparked their interest to explore a possible diversification of their energy resource production portfolio. However, extremely low in-country retail prices of fossil fuels to date present a significant economic hurdle to such developments. This paper uses a formal model setup accompanied by intuitive graphical illustrations as well as a numerical example to analyze fossil fuel abundant nations′ potential to transition to a supplier of renewable energy as well as possible pitfalls resulting from their status quo situation.

Suggested Citation

  • Wittmann, Nadine, 2013. "OPEC: How to transition from black to green gold," Energy Policy, Elsevier, vol. 62(C), pages 959-965.
    • Handle: RePEc:eee:enepol:v:62:y:2013:i:c:p:959-965
    DOI: 10.1016/j.enpol.2013.07.109
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0301421513007672
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.enpol.2013.07.109?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Rehman, Shafiqur, 2005. "Prospects of wind farm development in Saudi Arabia," Renewable Energy, Elsevier, vol. 30(3), pages 447-463.
    2. Mine K. Yücel, 1991. "Methanol as an alternative fuel: economic and health effects," Economic and Financial Policy Review, Federal Reserve Bank of Dallas, issue Sep, pages 9-20.
    3. Bollen, Johannes & Hers, Sebastiaan & van der Zwaan, Bob, 2010. "An integrated assessment of climate change, air pollution, and energy security policy," Energy Policy, Elsevier, vol. 38(8), pages 4021-4030, August.
    4. Neumayer, Eric, 2000. "Scarce or Abundant? The Economics of Natural Resource Availability," Journal of Economic Surveys, Wiley Blackwell, vol. 14(3), pages 307-335, July.
    5. Bazilian, Morgan & Onyeji, Ijeoma, 2012. "Fossil fuel subsidy removal and inadequate public power supply: Implications for businesses," Energy Policy, Elsevier, vol. 45(C), pages 1-5.
    6. Harold Hotelling, 1931. "The Economics of Exhaustible Resources," Journal of Political Economy, University of Chicago Press, vol. 39, pages 137-137.
    7. Hans Lind & Roland Granqvist, 2010. "A Note on the Concept of Excess Burden," Economic Analysis and Policy, Elsevier, vol. 40(1), pages 78-88, March.
    8. Eric Neumayer, 2000. "Scarce or Abundant? The Economics of Natural Resource Availability," Journal of Economic Surveys, Wiley Blackwell, vol. 14(3), pages 307-335, July.
    9. Riedy, Chris & Diesendorf, Mark, 2003. "Financial subsidies to the Australian fossil fuel industry," Energy Policy, Elsevier, vol. 31(2), pages 125-137, January.
    10. Watkins, G.C., 2006. "Oil scarcity: What have the past three decades revealed?," Energy Policy, Elsevier, vol. 34(5), pages 508-514, March.
    11. Geoffrey Heal, 1976. "The Relationship Between Price and Extraction Cost for a Resource with a Backstop Technology," Bell Journal of Economics, The RAND Corporation, vol. 7(2), pages 371-378, Autumn.
    12. Frankhauser, Samuel & Tol, Richard SJ, 1996. "Climate change costs : Recent advancements in the economic assessment," Energy Policy, Elsevier, vol. 24(7), pages 665-673, July.
    13. Partha Dasgupta & Geoffrey Heal, 1974. "The Optimal Depletion of Exhaustible Resources," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 41(5), pages 3-28.
    14. M.A. Adelman and G.C. Watkins, 2008. "Reserve Prices and Mineral Resource Theory," The Energy Journal, International Association for Energy Economics, vol. 0(Special I), pages 1-16.
    15. Sengupta, Ramprasad & Mandal, Subrata, 2005. "Health damage cost of automotive air pollution: Cost benefit analysis of fuel quality upgradation for Indian cities," Working Papers 05/37, National Institute of Public Finance and Policy.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Alsadi, Hanan, 2020. "Potential Influences on the Prospect of Renewable Energy Development in OPEC Members," OSF Preprints mhca2, Center for Open Science.
    2. Smeets, Niels, 2017. "Similar goals, divergent motives. The enabling and constraining factors of Russia's capacity-based renewable energy support scheme," Energy Policy, Elsevier, vol. 101(C), pages 138-149.
    3. Heubaum, Harald & Biermann, Frank, 2015. "Integrating global energy and climate governance: The changing role of the International Energy Agency," Energy Policy, Elsevier, vol. 87(C), pages 229-239.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Agnani, Betty & Gutierrez, Maria-Jose & Iza, Amaia, 2005. "Growth in overlapping generation economies with non-renewable resources," Journal of Environmental Economics and Management, Elsevier, vol. 50(2), pages 387-407, September.
    2. Bazhanov, Andrei & Belyaev, Alexander, 2009. "Адекватность Закрытой Модели Для Российской Экономики В Задаче Сравнительного Анализа Энергетической Стратегии России [Adequacy of a closed model for Russian economy in the problem of comparative a," MPRA Paper 15109, University Library of Munich, Germany.
    3. Devarajan, Shantayanan & Fisher, Anthony C, 1981. "Hotelling's "Economics of Exhaustible Resources": Fifty Years Later," Journal of Economic Literature, American Economic Association, vol. 19(1), pages 65-73, March.
    4. Dietz, Simon & Neumayer, Eric, 2007. "Weak and strong sustainability in the SEEA: Concepts and measurement," Ecological Economics, Elsevier, vol. 61(4), pages 617-626, March.
    5. Jouvet, Pierre-André & Schumacher, Ingmar, 2012. "Learning-by-doing and the costs of a backstop for energy transition and sustainability," Ecological Economics, Elsevier, vol. 73(C), pages 122-132.
    6. Hart, Rob, 2016. "Non-renewable resources in the long run," Journal of Economic Dynamics and Control, Elsevier, vol. 71(C), pages 1-20.
    7. Burcu Afyonoğlu Fazlıoğlu & Agustín Pérez-Barahona & Çağrı Sağlam, 2019. "Energy and Physical Capital: A Case of Non-classical Dynamics," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 72(4), pages 1003-1022, April.
    8. Antonio RIBBA, 2010. "Sources of Unemployment Fluctuations in the USA and in the Euro Area in the Last Decade," EcoMod2010 259600141, EcoMod.
    9. Bazhanov, A., 2011. "The Dependence of the Potential Sustainability of a Resource Economy on the Initial State: a Comparison of Models Using the Example of Russian Oil Extraction," Journal of the New Economic Association, New Economic Association, issue 12, pages 77-100.
    10. Frederick Van Der Ploeg & Cees Withagen, 2014. "Growth, Renewables, And The Optimal Carbon Tax," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 55(1), pages 283-311, February.
    11. Geoffrey Heal, 2022. "Economic Aspects of the Energy Transition," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 83(1), pages 5-21, September.
    12. Spiro, Daniel, 2014. "Resource prices and planning horizons," Journal of Economic Dynamics and Control, Elsevier, vol. 48(C), pages 159-175.
    13. Johannes Pfeiffer, 2017. "Fossil Resources and Climate Change – The Green Paradox and Resource Market Power Revisited in General Equilibrium," ifo Beiträge zur Wirtschaftsforschung, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, number 77.
    14. VARDAR, N. Baris, 2013. "Imperfect resource substitution and optimal transition to clean technologies," LIDAM Discussion Papers CORE 2013072, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    15. Bazhanov, Andrei, 2011. "Зависимость Долгосрочного Роста Ресурсной Экономики От Начального Состояния: Сравнение Моделей На Примере Российской Нефтедобычи [The dependence of the potential sustainability of a resource econom," MPRA Paper 35888, University Library of Munich, Germany.
    16. Bazhanov, Andrei, 2008. "Sustainable growth in a resource-based economy: the extraction-saving relationship," MPRA Paper 12350, University Library of Munich, Germany.
    17. Andrei V. Bazhanov, 2009. "A constant-utility criterion linked to an imperfect economy affected by irreversible global warming," EERI Research Paper Series EERI_RP_2009_03, Economics and Econometrics Research Institute (EERI), Brussels.
    18. Berk, Istemi & Yetkiner, Hakan, 2014. "Energy prices and economic growth in the long run: Theory and evidence," Renewable and Sustainable Energy Reviews, Elsevier, vol. 36(C), pages 228-235.
    19. André, Francisco J. & Smulders, Sjak, 2014. "Fueling growth when oil peaks: Directed technological change and the limits to efficiency," European Economic Review, Elsevier, vol. 69(C), pages 18-39.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:enepol:v:62:y:2013:i:c:p:959-965. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/enpol .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.