US military expenditures to protect the use of Persian Gulf oil for motor vehicles
Analyses of the full social cost of motor vehicle use in the US often estimate an â€œoil import premiumâ€ 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: â€œIf the US highway transportation sector did not use oil, how much would the US federal government reduce its military commitment in the Persian Gulf?â€ 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 $27â€“$73 billion per year (in 2004 dollars), of which roughly $6â€“$25 billion annually ($0.03â€“$0.15 per gallon or $0.01â€“$0.04 per liter) is attributable to motor-vehicle use.
|Date of creation:||01 Apr 2008|
|Date of revision:|
|Contact details of provider:|| Postal: 2028 Academic Surge, One Shields Avenue, Davis, CA 95616|
Phone: (530) 752-6548
Web page: http://www.escholarship.org/repec/itsdavis/
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Dan Schendel & Derek Channon & Ari Ginsberg & N. Venkatraman, 1992. "Abstract," Strategic Management Journal, Wiley Blackwell, vol. 13(S1), pages 37-53, 06.
- Donald W. Jones, Paul N. Leiby and Inja K. Paik, 2004. "Oil Price Shocks and the Macroeconomy: What Has Been Learned Since 1996," The Energy Journal, International Association for Energy Economics, vol. 0(Number 2), pages 1-32.
- Parry, Ian & Darmstadter, Joel, 2003. "The Costs of U.S. Oil Dependency," Discussion Papers dp-03-59, Resources For the Future.
- Delucchi, Mark A. & Murphy, James J., 2008.
"US military expenditures to protect the use of Persian Gulf oil for motor vehicles,"
Elsevier, vol. 36(6), pages 2253-2264, June.
- Delucchi, Mark & Murphy, James, 2008. "US military expenditures to protect the use of Persian Gulf oil for motor vehicles," Institute of Transportation Studies, Working Paper Series qt0j9561zd, Institute of Transportation Studies, UC Davis.
- Delucchi, Mark A. & Murphy, James, 1996. "U.S. Military Expenditures to Protect the Use of Persian-Gulf Oil For Motor Vehicles," University of California Transportation Center, Working Papers qt4mq1w5w2, University of California Transportation Center.
- Paul Dunne & Duncan Watson, 2000. "Military expenditure and employment in South Africa," Defence and Peace Economics, Taylor & Francis Journals, vol. 11(4), pages 587-596.
- Hamilton, James D & Herrera, Ana Maria, 2004. "Oil Shocks and Aggregate Macroeconomic Behavior: The Role of Monetary Policy: Comment," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 36(2), pages 265-86, April.
- Hall, Darwin C., 1992. "Oil and nationalal security," Energy Policy, Elsevier, vol. 20(11), pages 1089-1096, November.
- James D. Hamilton, 1985. "Historical Causes of Postwar Oil Shocks and Recessions," The Energy Journal, International Association for Energy Economics, vol. 0(Number 1), pages 97-116.
- Michael Gerace, 2002. "US Military Expenditures and Economic Growth: Some Evidence from Spectral Methods," Defence and Peace Economics, Taylor & Francis Journals, vol. 13(1), pages 1-11.
- Bohi, Douglas R., 1991. "On the macroeconomic effects of energy price shocks," Resources and Energy, Elsevier, vol. 13(2), pages 145-162, June.
- Ogden, Joan M. & Williams, Robert H. & Larson, Eric D., 2004. "Societal lifecycle costs of cars with alternative fuels/engines," Energy Policy, Elsevier, vol. 32(1), pages 7-27, January.
When requesting a correction, please mention this item's handle: RePEc:cdl:itsdav:qt0j9561zd. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Lisa Schiff)
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 references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.