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 The
Economy in Action |
| Energy: Academic Publications |
- Energy Security and Global Climate Change Mitigation
Hillard G. Huntington and Stephen P. A. Brown
Energy Policy 32(6), 2004.
Abstract
Industrialized countries may reduce their costs of meeting carbon constraints if they penalize fuels not only on the basis of their carbon intensity but also on the basis of their import-export status. Simulations of these policies show that participating industrialized countries can reduce their costs and hence increase their willingness to participate. However, they will imposte higher costs on the world because the most carbon-intensive fuels will not be taxed most heavily. Such a bias creates a "how" inefficiency in the addition to the "where" and "when" inefficiency created in current international agreements to control greenhouse gas emissions. Although countries ahve always had such incentives, these considerations must be more fully acknowledged in today's energy markets, after September 2001.
- Oil Price Shocks and the U.S. Economy: Where Does the Asymmetry Originate?
Nathan S. Balke, Stephen P. A. Brown and Mine K. Yücel
The Energy Journal 23(3), Third Quarter 2002
Abstract
Rising oil prices appear to retard aggregate U.S. economic activity by more than falling oil prices stimulate it. Past research suggests adjustment costs, financial stress, and/or monetary policy may be possible explanations for the asymmetric response. This paper uses a near vector autoregressive model of the U.S. economy to examine from where the asymmetry might originate. The analysis uses counterfactual experiments to determine that monetary policy alone cannot account for the asymmetry.
- Energy Prices and Aggregate Economic Activity: An Interpretative Survey
Stephen P. A. Brown and Mine K. Yücel
Quarterly Review of Economics and Finance, 42(2), Second Quarter 2002
Abstract
In this article, we surve the theory and evidence linking fluctuations in energy prices to those in aggregate economic activity. We then examine the implications of this research for both monetary policy and energy policy in response to oil price shocks. The currently available research seems to provide relatively reliable guidance for monetary policy. Because the precise channels through which oil price shocks affect economic activity are only partially known, however, research offers less guidance about how countries should design energy policy to cope with oil price shocks.
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