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A Numerical Analysis of Optimal Extraction and Trade of Oil under Climate Policy AgEcon
Massetti, Emanuele; Sferra, Fabio.
We introduce endogenous investments for increasing conventional and non-conventional oil extraction capacity in the integrated assessment model WITCH. The international price of oil emerges as the Nash equilibrium of a non-cooperative game. When carbon emissions are not constrained, oil is used throughout the century, with unconventional oil taking over conventional oil from mid-century onward. When carbon emissions are constrained, oil consumption drops dramatically and the oil price is lower than in the BaU. Unconventional oil is not extracted. Regional imbalances in the distribution of stabilisation costs are magnified and the oil-exporting countries bear, on average, costs three times larger than in previous estimates.
Tipo: Working or Discussion Paper Palavras-chave: Climate Policy; Integrated Assessment; Oil Production; Oil Revenues; Oil Trade; Resource /Energy Economics and Policy; E17; F17; Q32; Q43; Q54.
Ano: 2010 URL: http://purl.umn.edu/96495
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On the Economic Determinants of Oil Production. Theoretical Analysis and Empirical Evidence for Small Exporting Countries AgEcon
Cologni, Alessandro; Manera, Matteo.
In this paper, decisions regarding production in oil exporting countries are studied by means of theoretical analysis and empirical investigation. Under the assumptions of exogenous oil prices and world oil demand, we are able to describe the relationship between oil production levels and changes in the conditions in world oil markets. Intertemporal production decisions by a representative oil producer are modelled by means of a partial equilibrium model. In this theoretical model, oil producers are subject to exogenous shocks in world oil demand and prices. Oil companies can change output levels only by incurring a fixed cost. Results from the simulation of this model show a strong relationship between oil production and changes in world oil consumption....
Tipo: Working or Discussion Paper Palavras-chave: Oil Production; Exogenous Shocks; Theoretical Modelling; Time Series Analysis; Resource /Energy Economics and Policy; C22; D21; D22; Q41.
Ano: 2011 URL: http://purl.umn.edu/115725
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