Oil markets in turmoil: an economic analysis
Departing from conventional wisdom about the forces most responsible for oil price increases, this book analyzes the response of consumers, oil companies, and oil-exporting nations to show that lethargy, not greed, best describes the behavior of these participants during a supply disruption. The adjustment to changes in market conditions is so slow that minor incidents are transformed into major crises. Assessing existing policy options, Verleger dispels the idea of matching supply losses with an equal cut in consumption. He recommends a free-market approach, which entails raising prices quickly, imposing large tariffs on imports, encouraging the development of private stockpiles, and using spot prices as an indicator of oil shortages. He shows that the market approach will impose fewer costs than the regulatory approach in the long run. 83 references, 17 figures, 70 tables.
- OSTI ID:
- 6867107
- Country of Publication:
- United States
- Language:
- English
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Related Subjects
POLICY AND ECONOMY
02 PETROLEUM
OIL-EXPORTING COUNTRIES
ECONOMIC ANALYSIS
OIL-IMPORTING COUNTRIES
SUPPLY DISRUPTION
PETROLEUM
MARKET
GOVERNMENT POLICIES
EMERGENCY PLANS
IMPORTS
ECONOMICS
ENERGY SOURCES
FOSSIL FUELS
FUELS
294002* - Energy Planning & Policy- Petroleum
020700 - Petroleum- Economics
Industrial
& Business Aspects