On the climate change effects of high oil prices
โ Scribed by Marc Vielle; Laurent Viguier
- Publisher
- Elsevier Science
- Year
- 2007
- Tongue
- English
- Weight
- 146 KB
- Volume
- 35
- Category
- Article
- ISSN
- 0301-4215
No coin nor oath required. For personal study only.
โฆ Synopsis
Some commentators claim that the oil market has achieved within a few months what international bureaucrats have struggled to obtain in a decade of international climate negotiations. The fallacy of the oil price argument is that substitutions and income effects that would result from higher oil prices are not considered. Using a computable general equilibrium model, we show that high oil prices cannot serve as substitutes for effective climate policies.
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