Capros P., P. Karadeloglou and G.N. Mentzas (1989) "Energy Policy and the Oil Price Decline"
Paper presented at the International Energy Workshop, International Institute of Applied Systems Analysis, IIASA, 28-30 June, Laxenburg, Austria.
The resent fall of crude oil prices has generated a significant debate over the energy policy options that should be followed. In the medium term, the debate concerns mainly energy pricing and especially energy tax policy. In oil importing economies, governments have to deal with defining energy tax rates in a way that the economy takes advantage of low consumer energy prices, while energy conservations or fuel substitution programmes are preserved and government's tax revenues are maintained or even increased. In the paper, these policy issues are analysed both empirically and theoretically by means of a medium-term macroeconomic model, in which energy-economy interactions are sufficiently represented.
Paper available on request (hard copy only)
