Regional effects of a gasoline tariff in a two good spatial equilibrium model
Increased gasoline imports into a weak U.S. gasoline market, falling oil prices, and new foreign export refineries have sparked growing sentiment for protective tariffs. Since such sentiment is likely to cause heated debate between various U.S. regions, the authors have developed a model to quantify the annual regional effects of such tariffs for 1990. The authors have chosen gasoline for the analysis because of its importance in U.S. petroleum product markets and because such legislation was the first introduced. The analysis could, however, be done on other products or crude oil and also discuss the likely implications of such tariffs. The authors do their analysis in a two good framework to capture output substitution directly and use a spatial equilibrium model to capture regional effects. This model combines demand and supply equations along with transport costs for ten U.S. demand regions and eight supply regions for both gasoline and fuel oil to simulate regional changes in oil product flows, prices, consumer surplus, producer surplus, and employment in response to alternative tariff increases.
- Research Organization:
- Economic Research Service, U.S. Dept. of Agriculture, Washington, DC (US)
- OSTI ID:
- 6986279
- Journal Information:
- Energy Syst. Policy; (United States), Vol. 11:4
- Country of Publication:
- United States
- Language:
- English
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Related Subjects
GASOLINE
IMPORTS
REGIONAL ANALYSIS
SUPPLY AND DEMAND
PETROCHEMICALS
LEGISLATION
PETROLEUM
PRICES
COST ESTIMATION
EMPLOYMENT
ENVIRONMENTAL TRANSPORT
EQUATIONS
EXPORTS
MARKET
MATHEMATICAL MODELS
PETROLEUM REFINERIES
TARIFFS
USA
ENERGY SOURCES
FOSSIL FUELS
FUELS
INDUSTRIAL PLANTS
LIQUID FUELS
MASS TRANSFER
NORTH AMERICA
PETROLEUM PRODUCTS
020500* - Petroleum- Products & By-Products
020700 - Petroleum- Economics
Industrial
& Business Aspects
020400 - Petroleum- Processing
021000 - Petroleum- Legislation & Regulations
022000 - Petroleum- Transport
Handling
& Storage