| Author: | Berg, E. Kverndokk, S. Rosendahl, K. E. |
| Title: | Oil exploration under climate treaties |
| Journal: | Journal of Environmental Economics and Management
2002 : NOV, VOL. 44:3, p. 493-516 |
| Index terms: | Environmental economics Oil industry Air pollution OPEC |
| Language: | eng |
| Abstract: | The authors focus on how an international climate treaty will influence the exploration of oil in non-OPEC countries. They present a numerical intertemporal global equilibrium model for the fossil fuel markets. The international oil market is modelled with a cartel (OPEC) and a competitive fringe on the supply side, following a Nash-Cournot approach. In the case of a rising carbon tax the authors find the last incentive to be the strongest, which means that an international climate treaty may increase oil exploration in non-OPEC countries for the coming decades and reduce OPEC's market share. |
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