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Energy Journal Issue

The Energy Journal
Volume 1, Number 3

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An Integrated Framework for Energy Pricing in Developing Countries

Mohan Munasinghe

DOI: 10.5547/ISSN0195-6574-EJ-Vol1-No3-1
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In recent years, decisionmakers in an increasing number of countries have realized that energy sector investment planning and pricing should be carried out on an integrated basis, e.g., within the framework of a national energy master plan that determines energy policy, ranging from short-run supply-demand management to long-run planning. However, in practice investment planning and pricing are still carried out on an ad hoc and at best partial or subsector basis. Thus, electricity and oil subsector planning have traditionally been carried out independent of each other as well as independent of other energy subsectors. As long as energy was cheap, such partial approaches and the resulting economic losses were acceptable, but lately, with rising energy costs and changes in relative fuel prices

Energy Prices, Inflation, and Recession, 1974-1975

Knut Anton Mork and Robert E. Hall

DOI: 10.5547/ISSN0195-6574-EJ-Vol1-No3-2
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The rapid escalations of energy prices, in late 1973 and early 1974 and again in mid- and late-1979, have had major adverse impactson the U.S. economy. The energy price shock of 1973-1974 played a dominant role, by most accounts, in bringing about the deep recession and high inflation of the mid-1970s. In the most recent period, the full impact is yet to be seen, but it does not appear to be minor.In a previous paper published in this journal, (volume 1, number 2, April 1980), we presented the results of our efforts to quantify the economic impact on the U.S. economy of the July 1979 oil price increases.

Crude Oil Resource Appraisal in the United States

Noel D. Uri

DOI: 10.5547/ISSN0195-6574-EJ-Vol1-No3-3
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Prior to the Arab oil embargo that began in October 1973, the general feeling was that U.S. oil resources were almost limitless. Certainly there were some who were aware that the rate of crude oil produc-tion was falling and costs were increasing, but these perceptions were relegated to the background. Past experience supported the explorer's optimistic outlook concerning potential discoveries. The United States never seemed in danger of being less than the world's foremost producer of crude oil.

Petroleum Policy and Mexican Domestic Politics: Left Opposition, Regional Dissidence, and Official Apostasy

Edward J. Williams

DOI: 10.5547/ISSN0195-6574-EJ-Vol1-No3-4
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The impact of the petroleum industry on oil-producing countries has frequently emphasized the intimate interconnection and reciprocal influences of economic and political change. The agony of contemporary Iran is a dramatic example, but only one of many that help prove the point. In Nigeria's recent history, the competition for control of petroleum resources was one factor instigating a brutal civil war. In Venezuela, a new era of constitutional stability flowed from an expanded economic base provided by petroleum export earnings. In the United States, the rise to national prominence of the Texas politicos reflected the economic changes that evolved from petroleum discoveries.

Economic Effects of Increased Penetration of Solar Energy

Edward A. Hudson

DOI: 10.5547/ISSN0195-6574-EJ-Vol1-No3-5
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Recent energy policy proposals have given an important place to solar energy, and other new-technology energy sources, in the projected development of the U.S. energy system over the rest of the century. For example, the Domestic Policy Review of Solar Energy (U.S. Department of Energy, 1979), presented to the President in February 1979, raised the possibility that 20 percent of primary energy input in the year 2000 could be supplied from solar and other renewable sources. Since these technologies now provide only a small fraction of total energy input, changes of the magnitude involved in these proposals imply a major restructuring of the energy system.

The Real Price of Imported Oil

Joy Dunkerley and John E. Jankowski, Jr.

DOI: 10.5547/ISSN0195-6574-EJ-Vol1-No3-6
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The continual upward adjustment since 1973 in international quoted oil prices has been accompanied by two countervailing developments. The first is the weakening of the dollar against many national currencies. Since transactions in the international oil market are conducted in dollars, many countries were able to offer less of their national currency for each dollar of oil purchased. Second, sharply rising prices of all other goods and services in many oil-importing coun-tries diminished the impact of the relative rise in oil prices. Thus oil appeared as only one of a host of rising prices, perhaps rising more strongly than other prices but otherwise indistinguishable from a multitude of inflationary pressures. In other words, the real price of oil to importing countries may not have been rising as strongly in real terms as is suggested by price quotations from internationally traded crude oil. If this is the case, pressures for limiting oil imports and oil conservation generally would be weakened.