Skip to main content
U.S. Department of Energy
Office of Scientific and Technical Information

Auctioned quotas to limit U. S. imports

Journal Article · · Journal of Petroleum Technology; (USA)
OSTI ID:7261075
Since the mid-1970's, substantial literature has been written on the existence of a U.S. security premium on imported oil. Such a premium means that with unrestricted trade, the true marginal cost of imported oil exceeds that of domestically produced oil and oil substitutes. This implies that U.S. well-being would be enhanced in the long run if an import fee equal to the premium were imposed to raise the market price of imported oil to the level of its true marginal costs, thus inducing fewer imports and greater self-sufficiency in energy. The purpose of this paper is to show that if such a fee is adopted on security grounds, the appropriate fee must vary with the excess of the marginal costs of supplying U.S. domestic oil or oil substitutes over the world oil price. This paper concludes with an explanation of an automatic device to set and maintain the appropriate fee.
OSTI ID:
7261075
Journal Information:
Journal of Petroleum Technology; (USA), Journal Name: Journal of Petroleum Technology; (USA) Vol. 41:12; ISSN JPTJA; ISSN 0022-3522
Country of Publication:
United States
Language:
English

Similar Records

Oil import quota auctions
Journal Article · Wed Dec 31 23:00:00 EST 1975 · Challenge, the Magazine of Economic Affairs; (United States) · OSTI ID:7353420

Social cost of imported oil and US import policy
Technical Report · Mon Nov 30 23:00:00 EST 1981 · OSTI ID:5469579

Oil import quotas are not the answer. [Quota or tariff to stimulate price cut]
Journal Article · · J. Energy Dev.; (United States) · OSTI ID:7363631