Journal
APPLIED ECONOMIC PERSPECTIVES AND POLICY
Volume 33, Issue 3, Pages 402-427Publisher
OXFORD UNIV PRESS INC
DOI: 10.1093/aepp/ppr016
Keywords
energy; OPEC; biofuel; fuel; carbon savings; optimal export tax model; cheap oil
Categories
Funding
- Energy Biosciences Institute
- USDA Economic Research Service [58-6000-6-0051]
Ask authors/readers for more resources
This paper derives a method to quantify the impact of biofuels on fuel markets, assuming that these markets are dominated by a cartel of oil-rich countries and that fuel prices in these countries are significantly lower than those in the rest of the world. We identify large differences between the effects of introducing biofuels using the proposed method (denoted the cartel-of-nations [CON] model), in contrast to the competitive or the standard cartel models. When compared with the CON model, the competitive model overestimates the reduction in fuel prices and underestimates the reduction in fuel consumption, and therefore the impact of biofuels on greenhouse gases.
Authors
I am an author on this paper
Click your name to claim this paper and add it to your profile.
Reviews
Recommended
No Data Available