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Breakthrough Renewables and the Green Paradox

van der Ploeg, Rick - 2021

We show how a monopolistic owner of oil reserves responds to a carbon-free substitute becoming available at some uncertain point in the future if demand is isoelastic and variable extraction costs are zero but upfront exploration investment costs have to be made. Not the arrival of this...

Persistent link: https://www.econbiz.de/10013315844

A Third Benefit of Joint Non-OPEC Carbon Taxes : Transferring OPEC Monopoly Rent

Dong, Yan - 2013

This paper highlights the potential for joint OECD (or non-OPEC) carbon taxes to reduce OPEC's monopoly rent and provide benefit to non-OPEC countries provided jointly agreed trigger strategies are adhered to. In traditional economic theory, the primary purpose of a carbon tax is to internalize...

Persistent link: https://www.econbiz.de/10013095719

Optimal Tariffs on Exhaustible Resources : The Case of a Quantity Setting Cartel

Fujiwara, Kenji - 2013

We formulate a dynamic game model of trade in an exhaustible resource with a quantity-setting cartel. We compute the … importing country, and leadership by the exporting cartel. We numerically show that as compared to the Nash equilibrium, both … players are better off if the importing country is the leader. The follower is worse off if the exporting cartel is the leader …

Persistent link: https://www.econbiz.de/10013091687

OPEC, Shale Oil, and Global Warming - On the Importance of the Order of Extraction

Benchekroun, Hassan - 2018

oil to start producing before OPEC reserves are depleted. We fully characterize the equilibrium of a cartel-fringe model … and use a calibration to examine the importance of this extraction sequence effect. While welfare under the cartel …

Persistent link: https://www.econbiz.de/10012930279

OPEC's Market Power : An Empirical Dominant Firm Model for the Oil Market

Golombek, Rolf; Irarrazabal, Alfonso; Ma, Lin - 2021

In this paper we estimate a dominant firm-competitive fringe model for the crude oil market using quarterly data on oil prices for the 1986-2009 period. All the estimated structural parameters have the expected sign and are significant at standard test levels. We find that OPEC exercised its...

Persistent link: https://www.econbiz.de/10013315667

An Empirical Growth Model for Major Oil Exporters

Esfahani, Hadi Salehi; Mohaddes, Kamiar; Pesaran, M. Hashem - 2021

This paper develops a long-run growth model for a major oil exporting economy and derives conditions under which oil revenues are likely to have a lasting impact. This approach contrasts with the standard literature on the 'Dutch disease' and the 'resource curse', which primarily focuses on...

Persistent link: https://www.econbiz.de/10013315924

Unilateral Climate Policy, Asymmetric Backstop Adoption, and Carbon Leakage in a Two-Region Hotelling Model

Van der Werf, Edwin - 2015

We study backstop adoption and carbon dioxide emission paths in a two-region model with unilateral climate policy and non-renewable resource consumption. The regions have an equal endowment of the internationally tradable resource and a backstop technology. We first study the case of a...

Persistent link: https://www.econbiz.de/10013039172

Going Full Circle : Demand-Side Constraints to the Green Paradox

Di Maria, Corrado - 2013

We argue that the literature on the green paradox has largely ignored the demand side of the resource market, and that this side of the market may mitigate the size of an emissions increase in response to imperfect climate policies. These claims are informed by recent empirical findings. Our...

Persistent link: https://www.econbiz.de/10013084901

Short Run Effects of Bleaker Prospects for Oligopolistic Producers of a Non-Renewable Resource

Grimsrud, Kristine M. - 2014

In a non-renewable resource market with imperfect competition, both the resource rent and current prices influence a large resource owner's optimal supply. New information regarding future market conditions that affect the resource rent will consequently impact current supply. Bleaker demand...

Persistent link: https://www.econbiz.de/10013059498

Optimum Commodity Taxation with a Non-Renewable Resource

Daubanes, Julien - 2015

Under standard assumptions, optimum commodity taxation (OCT) should target non-renewable resources (NRRs) in priority. NRRs should be taxed at a higher rate than otherwise-identical conventional commodities. NRR substitutes and complements should receive a particular tax treatment. When reserves...

Persistent link: https://www.econbiz.de/10013024675