Abstract
Energy price decontrol in the United States is analyzed in terms of its energy and economic effects. It is found that decontrol stimulates some increase in oil and gas supply together with a substantial reduction in demand. Decontrol affects real economic performance through several mechanisms; adjustments related to energy supply expansion and international trade tend to increase productivity while adjustments related to energy demand reduction lower productivity. Quantitative analysis of decontrol, using an energy-economy simulation model, shows that real economic growth is likely to be increased as a result of decontrol with the international trade effect being the dominant mechanism underlying these gains.
I wish to thank James E. Parrish for his excellent research assistance in performing the simulations used in this paper.
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© 1982 The Scandinavian Journal of Economics
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Hudson, E.A. (1982). U.S. Energy Price Decontrol: Energy, Trade and Economic Effects. In: Matthiessen, L. (eds) The Impact of Rising Oil Prices on the World Economy. Scandinavian Journal of Economics. Palgrave Macmillan, London. https://doi.org/10.1007/978-1-349-06361-1_4
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DOI: https://doi.org/10.1007/978-1-349-06361-1_4
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