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US military expenditures to protect the use of Persian Gulf oil for motor vehicles

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  • Delucchi, Mark A.
  • Murphy, James J.

Abstract

Analyses of the full social cost of motor vehicle use in the US often estimate an "oil import premium" that includes the military cost of defending oil supplies from the Persian Gulf. Estimates of this cost have ranged from essentially zero to upwards of a $1 per gallon (about $0.25 per liter). In this paper, we attempt to narrow this range, by carefully answering the question: "If the US highway transportation sector did not use oil, how much would the US federal government reduce its military commitment in the Persian Gulf?" We work towards our answer in five steps, accounting for interests not related to oil, the interests of other oil-consuming countries, the interests of producers apart from the interests of consumers, and the interests of non-highway users of oil. We estimate that were there no oil in the Persian Gulf, then US combined peacetime and wartime defense expenditures might be reduced in the long run by roughly $27-$73 billion per year (in 2004 dollars), of which roughly $6-$25 billion annually ($0.03-$0.15 per gallon or $0.01-$0.04 per liter) is attributable to motor-vehicle use.

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  • Delucchi, Mark A. & Murphy, James J., 2008. "US military expenditures to protect the use of Persian Gulf oil for motor vehicles," Energy Policy, Elsevier, vol. 36(6), pages 2253-2264, June.
  • Handle: RePEc:eee:enepol:v:36:y:2008:i:6:p:2253-2264
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    1. Delucchi, Mark A. & Murphy, James J., 2008. "US military expenditures to protect the use of Persian Gulf oil for motor vehicles," Energy Policy, Elsevier, vol. 36(6), pages 2253-2264, June.
    2. Almas Heshmati & Shahrouz Abolhosseini, 2016. "European energy security Challenges and green opportunities," WIDER Working Paper Series 021, World Institute for Development Economic Research (UNU-WIDER).
    3. Moschini, GianCarlo & Cui, Jingbo & Lapan, Harvey E., 0. "Economics of Biofuels: An Overview of Policies, Impacts and Prospects," Bio-based and Applied Economics Journal, Italian Association of Agricultural and Applied Economics (AIEAA), issue 3.
    4. Greene, David L., 2010. "Measuring energy security: Can the United States achieve oil independence?," Energy Policy, Elsevier, vol. 38(4), pages 1614-1621, April.
    5. Krupnick, Alan & Campbell, Sarah & Cohen, Mark A. & Parry, Ian W.H., 2011. "Understanding the Costs and Benefits of Deepwater Oil Drilling Regulation," Discussion Papers dp-10-62, Resources For the Future.
    6. Littlefield, Scott R., 2013. "Security, independence, and sustainability: Imprecise language and the manipulation of energy policy in the United States," Energy Policy, Elsevier, vol. 52(C), pages 779-788.
    7. Mazumder, Diya B., 2014. "Biofuel subsidies versus the gas tax: The carrot or the stick?," Energy Economics, Elsevier, vol. 44(C), pages 361-374.
    8. Hahn, Robert & Passell, Peter, 2010. "The economics of allowing more U.S. oil drilling," Energy Economics, Elsevier, vol. 32(3), pages 638-650, May.
    9. Ryunosuke Kikuchi, 2011. "Environmental and socio-economic factors in carbon offsets: an approach to sustainable management and planning in climate change strategy," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 54(3), pages 355-367.
    10. Stern, Roger J., 2010. "United States cost of military force projection in the Persian Gulf, 1976-2007," Energy Policy, Elsevier, vol. 38(6), pages 2816-2825, June.
    11. Strakos, Joshua K. & Quintanilla, Jose A. & Huscroft, Joseph R., 2016. "Department of Defense energy policy and research: A framework to support strategy," Energy Policy, Elsevier, vol. 92(C), pages 83-91.
    12. Greene, David L. & Liu, Changzheng, 2015. "U.S. oil dependence 2014: Is energy independence in sight?," Energy Policy, Elsevier, vol. 85(C), pages 126-137.
    13. Brathwaite, J. & Horst, S. & Iacobucci, J., 2010. "Maximizing efficiency in the transition to a coal-based economy," Energy Policy, Elsevier, vol. 38(10), pages 6084-6091, October.

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