When the oil spigot is suddenly turned off
A number of political events could quickly reverse the current forecasts of a continuing oil glut. A review of proposals to deal with such an event suggests ten policy recommendations: (1) an immediate price increase; (2) a tariff on imports; (3) a graduated tariff during the shortage; (4) a mechanism to recycle tariff receipts; (5) avoiding refiner or consumer taxes; (6) encouraging private stockpiles; (7) making easy access to government-owned stockpiles; (8) avoiding debate over emergency plans; (9) avoiding price controls and allocations; and (10) avoid coordination through the International Energy Act (IEA). The author notes in (10) that IEA, as an international consultative body, cannot move quickly; also, reliance on IEA will encourage consuming countries from immediate unilateral action. 4 references. (DCK)
- Research Organization:
- Booz, Allen and Hamilton, Inc., Washington, DC
- OSTI ID:
- 6672404
- Journal Information:
- J. Policy Anal. Manage.; (United States), Journal Name: J. Policy Anal. Manage.; (United States) Vol. 1:4; ISSN JPAMD
- Country of Publication:
- United States
- Language:
- English
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