Energy Economics and Policy, Second Edition presents a unified analysis of energy economics and energy policy. This book deals with energy economics. It discusses the dimension of the energy problem-the role of energy in economic development, energy consumption patterns, energy supply, and oil prices. In dealing with equilibrium of energy demand and supply, the authors note that efficiency and equity considerations should be considered simultaneously using the income tax or welfare system to redress burdens imposed on the poor. The authors also analyze OPEC behavior and oil prices and notes six keys to the long-run viability of OPEC and their implications for future prices in oil. The authors present the environmental issues in energy development and the economics of pollution control. The authors cite the efficiency of low-cost emitters that receive incentives to control more compared to high-cost emitters. As regards conservation schemes, the authors note that prorationing polices seek to remedy symptoms of over drilling, excessive production, and flaring of natural gas-instead of addressing unified and efficient contracting systems. This book can prove beneficial to economists, environmentalists, and policy makers involved in oil and energy regulation and use.
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