Domestic energy: a forgotten factor in simple energy-economy models

Journal Article · Thu Jul 01 04:00:00 EDT 1982 · Energy J.; (United States)

DOI:https://doi.org/10.5547/ISSN0195-6574-EJ-Vol3-No3-3· OSTI ID:6755031

Peck, S C ^[1]; Solow, J L

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1. Electric Power Research Inst., Palo Alto, CA

This paper focuses on the impacts of world energy prices on an energy-importing economy such as the US. It examines in detail Sweeney's model of energy-economy interaction, which takes explicit account of the fact that the US energy sector is linked to the rest of the world and that the US is a net importer of energy. Results show that energy-consumption taxes and production subsidies do not influence the extent of energy-economy interaction. This result is exactly true when the domestic energy demand-and-supply functions are linear, and is approximately true for loglinear functions in the common ranges of parameter and price variation. The authors see only a limited impact of higher world energy prices where a large domestic energy sector exists. The elasticity of domestic energy supply and the elasticity of demand are of equal importance. 6 figures.

• OSTI ID: 6755031
• Journal Information: Energy J.; (United States), Journal Name: Energy J.; (United States) Vol. 3:3; ISSN ENJOD
• Country of Publication: United States
• Language: English

Related Subjects

29 ENERGY PLANNING, POLICY, AND ECONOMY
290200 -- Energy Planning & Policy-- Economics & Sociology
298000* -- Energy Planning & Policy-- Consumption & Utilization
ECONOMETRICS
ECONOMIC ELASTICITY
ECONOMICS
ENERGY SUPPLIES
GLOBAL ASPECTS
IMPORTS
PRICES
SUPPLY AND DEMAND