Direct and external benefits of reducing oil imports

Journal Article · Mon Oct 01 04:00:00 EDT 1979 · Energy Top.; (United States)

OSTI ID:5808359

Lemon, R

The rationale for reducing oil imports as a cost-effective policy is demonstrated by a study of the direct and external costs of a high reliance on imports and a determination of the total (social) cost. Direct costs of imports can be compared with those of new domestic energy supplies, while the report focuses on externalities and their effect on inflation, unemployment, and national security. A series of partial equilibrium analyses is used to develop the short-run effects for each of these external costs. This method of analysis is not as appropriate for long-term impacts because of counterbalancing changes in trade balances, currency appreciation, and deregulation. A well-spaced reduction of 4.5 million barrels per day, as proposed by President Carter, could accrue even more benefits than the President's goal. The benefits from deploying synthetic fuels and developing energy-efficient technologies strengthen the case for government intervention in the form of subsidies and tax incentives.

• OSTI ID: 5808359
• Journal Information: Energy Top.; (United States), Journal Name: Energy Top.; (United States); ISSN ETOPD
• Country of Publication: United States
• Language: English

Related Subjects

02 PETROLEUM
020700 -- Petroleum-- Economics
Industrial
& Business Aspects
29 ENERGY PLANNING, POLICY, AND ECONOMY
290200 -- Energy Planning & Policy-- Economics & Sociology
293000 -- Energy Planning & Policy-- Policy
Legislation
& Regulation
294002* -- Energy Planning & Policy-- Petroleum
ACCOUNTING
COST BENEFIT ANALYSIS
ECONOMIC IMPACT
ENERGY CONSERVATION
ENERGY POLICY
ENERGY SOURCES
FOSSIL FUELS
FUELS
GOVERNMENT POLICIES
IMPORTS
INSTITUTIONAL FACTORS
MANAGEMENT
PETROLEUM
SOCIO-ECONOMIC FACTORS