Title: Transport Regulations and the Effects in the Oil Market – Does Market Power Matter?
Presenter: Snorre Kverndokk, Frisch Centre for Economic Analysis, Oslo; and Resources For the Future, Washington, DC
Co-author: Knut Einar Rosendahl, Statistics Norway.
Time: Tuesday, June 22, 2010 from 12:30 to 2:00 PM
Several instruments to regulate consumption of oil in the transport sector are used or proposed. They typically include fuel taxes, biofuel requirements and fuel efficiency. The impacts of these instruments on the consumption of oil and the oil price vary. One important factor here is the market setting. We show that if market power is present in the oil market, the conclusions for the directions of change in consumption and price may contrast those in a competitive market. This may have important impacts, not only for the effectiveness of the policy instruments to reduce oil consumption, but also for terms of trade and carbon leakage.
Snorre Kverndokk (born 1962) received his Masters degree in Economics from University of Oslo in 1988, and his PhD in Economics from the same university 1994. He is a Senior Research Fellow at the Ragnar Frisch Centre for Economic Research in Oslo, but has been in Washington, DC, for the last two years as a visiting scholar at Johns Hopkins University-SAIS, University of Maryland and Resources For the Future. His main research interests are environmental and resource economics (particularly issues related to climate change) and health economics.
Transport regulations and the effects in the oil market – does market power matter?
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