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Energy Use in an Era of Rapidly Changing Oil Price—How OPEC Did Not save the World from the Greenhouse Effect

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  • H Neuburger

    (21 Northchurch Road, London N1 4ED, England)

Abstract

In this paper a statistical analysis of trends in energy use in six major OECD countries in the period 1968 to 1988 is reported. The traditional analyses are challenged, and it is concluded that one model, explaining the development of energy ratios in terms of the price of oil and a time trend, applies to all six countries. In each case there is a strong and steady downward trend of around 2% per annum and a price elasticity of less than 5%. It is argued that those accounts of energy use which attribute improvements in energy efficiency mainly to the oil price shocks of 1973 and 1979 are misspecified and wrong. It is suggested that the direct effect of the oil price on energy use is relatively small. This in turn implies that the use of general taxes such as a carbon tax is unlikely to be effective in reducing energy use without widespread collateral damage to the economy.

Suggested Citation

  • H Neuburger, 1992. "Energy Use in an Era of Rapidly Changing Oil Price—How OPEC Did Not save the World from the Greenhouse Effect," Environment and Planning A, , vol. 24(7), pages 1039-1050, July.
    • Handle: RePEc:sae:envira:v:24:y:1992:i:7:p:1039-1050
    DOI: 10.1068/a241039
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    References listed on IDEAS

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    1. Richard B. Howarth & Lee Schipper, 1991. "Manufacturing Energy Use in Eight OECD Countries: Trends through 1988," The Energy Journal, International Association for Energy Economics, vol. 0(Number 4), pages 15-40.
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    Cited by:

    1. Smith, Clare & Hall, Stephen & Mabey, Nick, 1995. "Econometric modelling of international carbon tax regimes," Energy Economics, Elsevier, vol. 17(2), pages 133-146, April.
    2. Mo Chung & Suk Gyu Lee & Chuhwan Park & Hwa-Choon Park & Yong-Hoon Im, 2013. "Development of a Combined Energy-Demands Calculator for Urban Building Communities in Korea," Environment and Planning B, , vol. 40(2), pages 289-310, April.

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