A government storing oil to reduce vulnerability to interruption in foreign supply should recognize the existence of private storage. In fact, public intervention is justified only if some distortion exists in the private market. A price ceiling that the government is unable to eliminate as a...

This paper considers the cost to society of long-run reductions of aggregate energy input from its equilibrium level. It demonstrates that similar economic results to those obtained from complex simulation models can be derived from a heuristic partial equilibrium model. It furthermore shows...