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Climate Policy And Petroleum Depletion

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  • Khanna, Neha
  • Chapman, Duane
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    Abstract

    This paper extends the Nordhaus DICE model to include the demands for coal, oil, and natural gas. These demands depend on own price, prices of substitute fuels, per capita income, and population. An augmented Hotelling model captures the effect of depleting oil resources. A methodological advantage of including price, income, and population sensitive energy demand functions is that it allows substitution possibilities in the 'production' of emissions. Furthermore, it allows the analysis of energy tax regimes in an environment of growing world population and income, non-decreasing energy and carbon intensity, and declining petroleum availability.

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    File URL: http://purl.umn.edu/127811
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    Bibliographic Info

    Paper provided by Cornell University, Department of Applied Economics and Management in its series Working Papers with number 127811.

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    Date of creation: Jan 1997
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    Handle: RePEc:ags:cudawp:127811

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    Related research

    Keywords: Agricultural and Food Policy; Research and Development/Tech Change/Emerging Technologies;

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    1. Duane Chapman & Vivek Suri & Steven G. Hall, 1995. "Rolling Dice For The Future Of The Planet," Contemporary Economic Policy, Western Economic Association International, vol. 13(3), pages 1-9, 07.
    2. Manne, Alan & Mendelsohn, Robert & Richels, Richard, 1995. "MERGE : A model for evaluating regional and global effects of GHG reduction policies," Energy Policy, Elsevier, vol. 23(1), pages 17-34, January.
    3. Drennen, Thomas E & Erickson, Jon D & Chapman, Duane, 1996. "Solar power and climate change policy in developing countries," Energy Policy, Elsevier, vol. 24(1), pages 9-16, January.
    4. Neha Khanna & Duane Chapman, 1996. "Time Preference, Abatement Costs, And International Climate Policy: An Appraisal Of Ipcc 1995," Contemporary Economic Policy, Western Economic Association International, vol. 14(2), pages 56-66, 04.
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