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Notes - Sense and Nonsense About World Oil

M. A. Adelman

Year: 1984
Volume: Volume 5
Number: Number 1
DOI: 10.5547/ISSN0195-6574-EJ-Vol5-No1-13
No Abstract



Notes - A Comparison of the Costs and the Results in the On/Offshore Search for Oil and Gas

Jon A. Rasmussen and Michael J. Piette

Year: 1984
Volume: Volume 5
Number: Number 1
DOI: 10.5547/ISSN0195-6574-EJ-Vol5-No1-11
No Abstract



Notes - Public Willingness to Invest in Household Weatherization

Marvin E. Olsen and Christopher Cluett

Year: 1984
Volume: Volume 5
Number: Number 1
DOI: 10.5547/ISSN0195-6574-EJ-Vol5-No1-12
No Abstract







Price Discrimination Limits in Relation to the Death Spiral

J. Stephen Henderson

Year: 1986
Volume: Volume 7
Number: Number 3
DOI: 10.5547/ISSN0195-6574-EJ-Vol7-No3-3
View Abstract

Abstract:
It is well known that a public utility commission may be able to improve overall social welfare by allowing decreasing-cost industries (such as local public utilities) to price discriminate. For this course of action to be practical, the following conditions must prevail: (1) marginal-cost prices do not cover costs and (2) external subsidies are not feasible. Consequently, the need to raise prices above marginal costs means that some social welfare, measured as the sum of consumer's and producer's surplus, for example, must be sacrificed to allow the utility to break even. To minimize this sacrifice, the proportional deviation of price from marginal cost for each service should be correspondingly larger for markets with inelastic demands than for those in which demand is elastic.' This type of inverse elasticity rule seldom is used in practice and is cited here only to illustrate that pure value-of-service pricing may improve overall social welfare.



A Welfare Measure of a New Type of Energy Assistance Program

Kenneth W. Costello

Year: 1988
Volume: Volume 9
Number: Number 3
DOI: 10.5547/ISSN0195-6574-EJ-Vol9-No3-6
View Abstract

Abstract:
The sharp increase in utility rates since the 1970s has inflicted great hardship on low-income households. For many, paying their utility bills means sacrificing the purchase of other commodities essential to their economic well-being.' Another symptom of this problem is exhibited by the increased number of low-income people whose utility service has been cut off. Energy assistance programs have been instituted to cope with this serious problem. The major objectives of these programs are: (a) to make energy more affordable to the poor, thereby reducing the number of service disconnections, and (b) to limit how much the poor must pay for energy so that more funds are available for purchasing other essential commodities.



The 1990 Oil Shock is Like the Others

M. A. Adelman

Year: 1990
Volume: Volume 11
Number: Number 4
DOI: 10.5547/ISSN0195-6574-EJ-Vol11-No4-1
View Abstract

Abstract:
First I will set out what happened to prices in 1990, then review the long term prospects in the light of the change.Challenge and responseSince 1912, and the first shipments out of the Persian Gulf, the world price of oil has been far above the fording/developing cost of creating new reserves. The result is a huge excess of potential production, which the owners must somehow dam up to maintain the price.Since the OPEC nations took over 20 years ago, the process has been much more turbulent. First, their chief instrument for price-raising has been to provoke a crisis, or take advantage of one. Second, there has usually been not only potential excess supply but actual excess producing capacity. This makes the high price even more insecure.



Understanding the 1990 Oil Crisis

Philip K Verleger, Jr

Year: 1990
Volume: Volume 11
Number: Number 4
DOI: 10.5547/ISSN0195-6574-EJ-Vol11-No4-2
View Abstract

Abstract:
The cause of the Iraqi invasion of Kuwait on August 2, 1990--and hence of the worldwide energy crisis that it precipitated--was economic, although the issue was one that might not appear immediately relevant to consumers at the pumps. For several months preceding the invasion, Iraqi President Saddam Hussein had been asserting, with some justification, that Kuwait was in effect engaged in economic war with Iraq, stealing oil from the disputed Rumaila field and producing in excess of its OPEC quota.The validity of Iraq's assertions has never been adjudicated by the international community, before or since the invasion. Instead, on August 6 the United Nations imposed an immediate and nearly total embargo on oil exports from Iraq, as well as on Kuwait, which Iraq had by then absorbed. This embargo removed almost 5 million barrels a day of oil from the world market. Most of the lost supply was in the form of crude oil. However, the embargo also forced the shutdown of sophisticated export refineries in Kuwait that at the time of the invasion were producing 750,000 barrels of refined product per day, including a large share of the industrial countries' supply of light products such as gasoline, jet fuel, and heating oil.



Environmental and Energy Efficiency of EU Electricity Industry: An Almost Spatial Two Stages DEA Approach

Simona Bigerna, Maria Chiara D’Errico, and Paolo Polinori

Year: 2019
Volume: Volume 40
Number: The New Era of Energy Transition
DOI: 10.5547/01956574.40.1.sbig
View Abstract

Abstract:
This study analyzes the relationship between the energy efficiency and the stringency of environmental and market regulation in the electricity sectors has been analyzed. Using 19 European Union countries (2006-2014), we decomposed the environmental policy stringency index, the OECD regulatory indicators and the total factor productivity growth to highlight the complexity of the relations between electricity sector and regulatory policies. In the first stage we compute the three main components of total factor productivity. These three efficiency measures are used in the second stage to assess the impact of the regulatory policies on the total factor productivity also controlling for spatial effect. Results suggest that market and environmental regulations have not unidirectional impacts on the three components of total factor productivity. Pure and scale efficiency index are negatively affected by sectorial regulation that positively affect the shift of technological frontier. Environmental policy negatively affects the shift of the efficient frontier, but has a positive effect on the scale efficiency.



Mitigating Climate Change While Producing More Oil: Economic Analysis of Government Support for CCS-EOR

Hossa Almutairi and Axel Pierru

Year: 2024
Volume: Volume 45
Number: Special Issue
DOI: 10.5547/01956574.44.SI1.halm
View Abstract

Abstract:
By storing CO2 captured from the atmosphere or point sources into oil fields, carbon capture and storage with enhanced oil recovery (CCS-EOR) increases the fields' output by raising reservoir pressures. Since CO2-EOR has been experimented with for decades and the revenues from the additional oil production improve projects' economics, CCS-EOR is the most readily deployable CCS technology. However, government support for CCS-EOR projects is sometimes contested on the grounds that the resulting increase in oil production undermines their environmental benefits. Addressing this concern requires determining the effects of implementing CCS-EOR on global CO2 emissions. This paper presents a simple approach based on a marginal reasoning consistent with economic decision-making. It produces analytical formulas that account for the effects on the global oil market of incentivizing CCS-EOR. In addition, we quantify the volume of oil that can be decarbonized by storing a ton of captured CO2 through EOR from different perspectives. We produce numerical results based on a first-cut calibration. They suggest that, from an economic perspective, CCS-EOR is a technology that mitigates global emissions. However, after accounting for the need to decarbonize the EOR oil, the reduction in emissions is significantly less than the stored quantity of CO2. If fully allocated to oil production, the environmental benefits of capturing a ton of CO2 and storing it through conventional EOR can allow the oil producer to decarbonize 3.4 barrels on a well-to-wheel basis and 14.4 barrels when offsetting its oil-upstream emissions only. Fiscal incentives granted by governments to support CCS-EOR as a climate-change mitigation technology should be sized accordingly. We compare our findings to the size of the subsidy in the revised Section 45Q of the 2022 United States Inflation Reduction Act.





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