Oil import quotas are not the answer. [Quota or tariff to stimulate price cut]

Journal Article · · J. Energy Dev.; (United States)

OSTI ID:7363631

Willett, T D

This paper discusses two alternative approaches to United States oil import policy. There appears to be a growing momentum behind proposals to place quotas on oil imports as an alternative to the President's tariff proposal. The author believes that a tariff wold be substantially superior to a quota that would reduce oil imports by an equal amount. The popularity of quota proposals stems, to some extent, from their appearance of being a more direct method of limiting imports, and from lack of appreciation that quotas would raise domestic market clearing prices just as would tariffs and taxes. Economists have traditionally tended to favor tariffs over quotas in cases of deviation from free trade. The current resurgence of interest in quotas on oil imports is not, however, purely a matter of advocacy of noneconomists against economists. Much of the recent support for quotas has been generated from within the economics profession, especially by Morris Adelman's insightful analysis of the manner in which a system of quotas, allocated to oil exporters by secret bids, could lead to pressures for substantial price cutting by oil exporters. (auth)

• Research Organization: Deputy Assistant Secretary of the Treasury
• OSTI ID: 7363631
• Journal Information: J. Energy Dev.; (United States), Journal Name: J. Energy Dev.; (United States) Vol. 1:2; ISSN JENDD
• Country of Publication: United States
• Language: English

Related Subjects

02 PETROLEUM
021000 -- Petroleum-- Legislation & Regulations
29 ENERGY PLANNING, POLICY, AND ECONOMY
293000* -- Energy Planning & Policy-- Policy
Legislation
& Regulation
294002 -- Energy Planning & Policy-- Petroleum
ALLOCATIONS
CHARGES
ECONOMIC POLICY
ECONOMICS
EFFICIENCY
ENERGY POLICY
ENERGY SHORTAGES
ENERGY SOURCES
FOSSIL FUELS
FUELS
GOVERNMENT POLICIES
MARKET
PETROLEUM
SECURITY
STOCKPILES
TAXES
TRADE