Energy imports and manufacturing exports with successive oligopolies and storage

Arnold, Lutz G. and Arnold, Volker (2024) Energy imports and manufacturing exports with successive oligopolies and storage. ENERGY ECONOMICS, 133: 107458. ISSN 0140-9883, 1873-6181

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Abstract

Many industrial countries run a "business model"that is based on oligopolistic export industries which strongly depend on energy imports. This paper uses an analytically tractable general equilibrium model of international trade with successive oligopolies and storage to analyze optimum trade and industrial policies for such countries. There can be over -investment in storage for strategic reasons. Despite double marginalization, there is a non -zero optimum level of market concentration for the domestic industry. The optimum import tariff is most likely positive. Subsidies to storage and reduced use of long term contracts usually raise domestic welfare.

Item Type: Article
Uncontrolled Keywords: COURNOT DUOPOLY; MARKET; Energy imports; Successive oligopolies; Storage; Trade policy
Subjects: 300 Social sciences > 330 Economics
Divisions: Business, Economics and Information Systems > Institut für Volkswirtschaftslehre und Ökonometrie
Business, Economics and Information Systems > Institut für Volkswirtschaftslehre und Ökonometrie > Lehrstuhl für Theoretische Volkswirtschaft (Prof. Dr. Lutz Arnold)
Depositing User: Dr. Gernot Deinzer
Date Deposited: 25 Jul 2025 11:16
Last Modified: 25 Jul 2025 11:16
URI: https://pred.uni-regensburg.de/id/eprint/63804

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