Subsidies to new energy sources: do they add to energy stocks? ( USA).

W. J. Baumol, E. N. Wolff

    Research output: Chapter in Book/Report/Conference proceedingChapter (peer-reviewed)

    Abstract

    Energy-production subsidies are, paradoxically, shown to be likely to increase US dependence on imported oil. Standard studies of net energy yields are shown to be seriously biased upward for two reasons: 1) many omit indirect energy inputs, which, this input-output calculation shows, probably causes large errors; 2) they all omit the energy opportunity costs of nonenergy inputs (e.g., the fuel substituted elsewhere for the labor used to produce energy). Proves that, absent externalities, any fuel-output subsidy which causes an otherwise unprofitable expansion must yield an incremental fuel output smaller than the increment in energy input plus the energy opportunity costs of other inputs. -Authors

    Original languageEnglish (US)
    Title of host publicationInput-output analysis
    EditorsHeinz D. Kurz, Christian Lager
    PublisherEdward Elgar Publishing Ltd.
    Number of pages23
    DOIs
    Publication statusPublished - 2017

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    ASJC Scopus subject areas

    • Economics and Econometrics

    Cite this

    Baumol, W. J., & Wolff, E. N. (2017). Subsidies to new energy sources: do they add to energy stocks? ( USA). In H. D. Kurz, & C. Lager (Eds.), Input-output analysis Edward Elgar Publishing Ltd.. https://doi.org/10.1086/261012