Consider a case where it is desired to estimate a detection-controlled estimation model in each of two regimes where the observations in each regime are the result of a selection process. This paper proposes a treatment for this sample selection problem for the case of a probit selection...

Pennsylvania has the longest history of oil and gas drilling in the world, and the state's governance of the industry has matured and continues to evolve. The long history of policy development provides a panoramic perspective useful for the governance challenges of ensuring responsible oil and...

I maximize present valued world GDP over the stockpile of petroleum used to contain price shocks administered by OPEC. Long run price elasticity of demand and non-OPEC supply exceed those in the short run, so OPEC profits from sudden, as opposed to gradual, increases in price. These shocks...

Economists have long noted that improving energy e fficiency could lead to a rebound eff ect, reducing or possibly even eliminating the energy savings from the effi ciency improvement. Yet there are important nuances in the microeconomic theory of the rebound eff ect that have not been explored....

For roughly 150 years, coal mines in the United States were dug and abandoned with little regard to the hazards they would present to health or the environment. Through a listening session and follow-up conversations, we heard from stakeholders in mine reclamation in Pennsylvania, the state with...

Iran as an energy-rich country faces many challenges in optimal utilization of its vast resources. High population and economic growth, generous subsidies program, and poor resource management have contributed to rapidly growing energy consumption and high energy intensity for the past decades....

The paper studies the return-volatility relationship in a range of commodities. We develop a commodity price model and show that the volatility of price changes can be positively or negatively related to demand shocks. An “inverse leverage effect” – the volatility is higher following...

The recent dramatic fall in oil prices has led to extensive capital rationing in international oil companies, and subsequent fierce competition between resource extraction countries to attract scarce investment. This situation is not adequately addressed by the large literature on international...

A central question in the analysis of fuel-economy policy is whether consumers are myopic with regards to future fuel costs. We provide the first evidence on consumer valuation of fuel economy from a natural experiment. We examine the short-run equilibrium effects of an exogenous restatement of...

Energy leapfrogging may have critical implications for a world that seeks to reduce its fossil fuel use and greenhouse gas emissions, and in which most future economic growth will be concentrated in rapidly growing, industrializing countries rather than in more mature economies. The current...