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Import Policy Effects on the Optimal Oil Price

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  • Steven M. Suranovic

Abstract

A steady increase in oil imports leaves oil importing countries increasingly vulnerable to future oil price shocks. Using a variation of the U.S. ElA's oil market simulation model, equilibria displaying multiple price shocks is derived endogenously as a result of optimizing behavior on the part of OPEC. Here we investigate the effects that an oil import tariff and a petroleum stock release policy may have on an OPEC optimal price path. It is shown that while both policies can reduce the magnitude of future price shocks neither may be politically or technically feasible.

Suggested Citation

  • Steven M. Suranovic, 1994. "Import Policy Effects on the Optimal Oil Price," The Energy Journal, , vol. 15(3), pages 123-144, July.
    • Handle: RePEc:sae:enejou:v:15:y:1994:i:3:p:123-144
    DOI: 10.5547/ISSN0195-6574-EJ-Vol15-No3-7
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    References listed on IDEAS

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    1. Shmuel S. Oren & Shao Hong Wan, 1986. "Optimal Strategic Petroleum Reserve Policies: A Steady State Analysis," Management Science, INFORMS, vol. 32(1), pages 14-29, January.
    2. Suranovic, Steven M., 1993. "Does a target-capacity utilization rule fulfill OPEC's economic objectives?," Energy Economics, Elsevier, vol. 15(2), pages 71-79, April.
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    Cited by:

    1. Greene, David L & Jones, Donald W & Leiby, Paul N, 1998. "The outlook for US oil dependence," Energy Policy, Elsevier, vol. 26(1), pages 55-69, January.
    2. 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.

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    More about this item

    Keywords

    Oil imports; US; Energy policy; Oil prices; OMS92 model;
    All these keywords.

    JEL classification:

    • F0 - International Economics - - General

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