I think James Hamilton at Econobrowser has an analysis as well
http://www.econbrowser.com/archives/2006/04/rising_gas_pric.html
Don Coffin
-----Original Message-----
From: Gerald Baumgardner [mailto:gbaumgar@pct.edu]
Sent: Friday, May 05, 2006 11:59 AM
To: edunne@Oswego.EDU
Cc: tch-econ@elon.edu
Subject: Re: Gas price anlaysis
I like to point out the simple supply/demand analysis. On the demand
side, we are responsible for most of the problem in that we took the
fuel efficiency gains of the 80s and 90s and plugged it into much bigger
vehicles. Additionally, we've done little to generate other economies
and are quite bullish in that all of us want to drive to work "alone"
instead of car-pooling. This worked until the Chinese and Indian
economies took off thus a large increase in Non-US demand. What about
the supply side? Well, there is more oil pumped out of this earth than
ever before. However, much of the supply comes from unstable parts of
the world. Our channel is complex in that different states have
different EPA requirements for grades of gasoline, thus we can't gain
large economies of scale. Additionally, we need more refining capacity
as long as it isn't built in "our backyard"----
Gerald
>>> Elizabeth Dunne Schmitt <edunne@Oswego.EDU> 05/05/06 12:27 PM >>>
The Becker-Posner Blog has a nice analysis from 4/30:
http://www.becker-posner-blog.com/
Mark Maier wrote:
> The college newspaper just interviewed me about rising gas prices and
> I was unable to point the reporter to good analyses for the educated
> public. Any ideas?
>
> For in-class work, I found the following a bit dated but helpful. I
> like the way it guides the student while asking open-ended questions
> about oil pricing. It's an update supplement to Harris' Environmental
> and Naturual Resource Economics available at
> * http://www.ase.tufts.edu/gdae/publications/textbooks/ENREupdate.html
> * Go to: GASOLINE PRICES AND ENERGY SUPPLIES
>
>
>
> Mark H. Maier
> Department of Economics
> Glendale Community College
> Glendale, CA 91208
> mmaier@glendale.edu
> 818-240-1000 Ext. 5468
> FAX 818-549-9436
>
-- ***************************************** Elizabeth Dunne Schmitt Associate Professor and Chair Dept. of Economics SUNY Oswego edunne@oswego.edu *****************************************
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