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Title: Regional effects of a gasoline tariff in a two good spatial equilibrium model

Abstract

Increased gasoline imports into a weak U.S. gasoline market, falling oil prices, and new foreign export refineries have sparked growing sentiment for protective tariffs. Since such sentiment is likely to cause heated debate between various U.S. regions, the authors have developed a model to quantify the annual regional effects of such tariffs for 1990. The authors have chosen gasoline for the analysis because of its importance in U.S. petroleum product markets and because such legislation was the first introduced. The analysis could, however, be done on other products or crude oil and also discuss the likely implications of such tariffs. The authors do their analysis in a two good framework to capture output substitution directly and use a spatial equilibrium model to capture regional effects. This model combines demand and supply equations along with transport costs for ten U.S. demand regions and eight supply regions for both gasoline and fuel oil to simulate regional changes in oil product flows, prices, consumer surplus, producer surplus, and employment in response to alternative tariff increases.

Authors:
;
Publication Date:
Research Org.:
Economic Research Service, U.S. Dept. of Agriculture, Washington, DC (US)
OSTI Identifier:
6986279
Resource Type:
Journal Article
Journal Name:
Energy Syst. Policy; (United States)
Additional Journal Information:
Journal Volume: 11:4
Country of Publication:
United States
Language:
English
Subject:
02 PETROLEUM; GASOLINE; IMPORTS; REGIONAL ANALYSIS; SUPPLY AND DEMAND; PETROCHEMICALS; LEGISLATION; PETROLEUM; PRICES; COST ESTIMATION; EMPLOYMENT; ENVIRONMENTAL TRANSPORT; EQUATIONS; EXPORTS; MARKET; MATHEMATICAL MODELS; PETROLEUM REFINERIES; TARIFFS; USA; ENERGY SOURCES; FOSSIL FUELS; FUELS; INDUSTRIAL PLANTS; LIQUID FUELS; MASS TRANSFER; NORTH AMERICA; PETROLEUM PRODUCTS; 020500* - Petroleum- Products & By-Products; 020700 - Petroleum- Economics, Industrial, & Business Aspects; 020400 - Petroleum- Processing; 021000 - Petroleum- Legislation & Regulations; 022000 - Petroleum- Transport, Handling, & Storage

Citation Formats

Boyd, R, and Dahl, C A. Regional effects of a gasoline tariff in a two good spatial equilibrium model. United States: N. p., 1987. Web.
Boyd, R, & Dahl, C A. Regional effects of a gasoline tariff in a two good spatial equilibrium model. United States.
Boyd, R, and Dahl, C A. 1987. "Regional effects of a gasoline tariff in a two good spatial equilibrium model". United States.
@article{osti_6986279,
title = {Regional effects of a gasoline tariff in a two good spatial equilibrium model},
author = {Boyd, R and Dahl, C A},
abstractNote = {Increased gasoline imports into a weak U.S. gasoline market, falling oil prices, and new foreign export refineries have sparked growing sentiment for protective tariffs. Since such sentiment is likely to cause heated debate between various U.S. regions, the authors have developed a model to quantify the annual regional effects of such tariffs for 1990. The authors have chosen gasoline for the analysis because of its importance in U.S. petroleum product markets and because such legislation was the first introduced. The analysis could, however, be done on other products or crude oil and also discuss the likely implications of such tariffs. The authors do their analysis in a two good framework to capture output substitution directly and use a spatial equilibrium model to capture regional effects. This model combines demand and supply equations along with transport costs for ten U.S. demand regions and eight supply regions for both gasoline and fuel oil to simulate regional changes in oil product flows, prices, consumer surplus, producer surplus, and employment in response to alternative tariff increases.},
doi = {},
url = {https://www.osti.gov/biblio/6986279}, journal = {Energy Syst. Policy; (United States)},
number = ,
volume = 11:4,
place = {United States},
year = {Thu Jan 01 00:00:00 EST 1987},
month = {Thu Jan 01 00:00:00 EST 1987}
}