Economic analysis of energy demand restraint measures. Energy and National Security Series: discussion paper D-82T

Technical Report · Sat Jan 01 04:00:00 EST 1983

OSTI ID:5499304

Noll, S A

Planned and proposed responses to oil supply disruptions usually included a list of emergency demand restraint measures to limit oil consumption. These measures have faded from view with the introduction of a more market-oriented energy policy, but they remain in the wings. Were another supply disruption to occur, pressure could develop to bring them back to center stage. This report describes microeconomic and macroeconomic methods for evaluating specific restrictions on oil use. The author explains why direct controls entail greater economic costs than reliance on the price system, but notes that they may nevertheless be pursued because of their different effects on the distribution of income. There have been numerous efforts to quantify the deadweight losses to the economy - as compared with market allocation - from use of these measures. After examining these attempts, however, Noll finds that current macroeconomic models are neither conceptually nor empirically adequate to the task. The paper concludes with an example of state-level consideration of emergency demand restraint measures. Even with a market-oriented federal energy policy, it turns out, analysis of direct controls on energy use is pertinent because of the ability of states to adopt them. 38 refs., 9 figs., 8 tabs.

• Research Organization: Resources for the Future, Inc., Washington, DC (USA)
• DOE Contract Number: AC01-80PE70267
• OSTI ID: 5499304
• Report Number(s): DOE/PE/70267-T19; ON: DE85016775
• Country of Publication: United States
• Language: English

Related Subjects

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ALLOCATIONS
DEMAND
ECONOMIC ANALYSIS
ECONOMIC IMPACT
ECONOMICS
ECONOMY
EMERGENCY PLANS
ENERGY DEMAND
ENERGY POLICY
ENERGY SOURCES
EVALUATION
FOSSIL FUELS
FUELS
GOVERNMENT POLICIES
MARKET
PETROLEUM
PRICES
SUPPLY DISRUPTION