Energy Economics and Policy

Abstract

Most of the recent discussion on the energy crisis centered around questions of social and political policy, with little systematic attention given to the economic analysis of the policy problems presented by the changing role of energy in modern economies. To fill a gap in the literature, the established techniques of microeconomics are applied to the analysis of energy resources as scarce inputs to production processes. Intended as an undergraduate course, the text emphasizes oil and gas as the primary fuel sources and is biased in favor of competition and against monopoly. The major chapter headings are: (1) The dimensions of the energy problem; (2) Static criteria for efficient energy resource allocation; (3) Criteria for efficient dynamic resource allocation; (4) The role of the organization of petroleum exporting countries in precipitating the world energy crisis; (5) Environmental issues in energy development; (6) The national security dilemma; (7) Conservation; (8) Price controls of oil and natural gas; (9) The optimum structure and regulation of energy industries: some alternative approaches; (10) Future energy technologies and the role for energy research and development; and (11) Suggested policy directions. 38 references, 42 figures, 24 tables.