Category: Economics

Economic issues, with a bias toward development and macroeconomics

Price elasticity of oil

A post on blogwaffe has reminded me of some of the economic implications of oil depletion, in areas like production of plastics.

As rightly pointed out there, many uses of oil have alternatives that could be pursued, such as plant-based synthesis for plastic. But many areas of oil use, particularly agriculture and some types of transport, would require huge societal shifts to move to alternatives. Unfortunately, however, the economics of oil depletion are not going to help that shift.
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Kyoto Treaty takes force

Yesterday, Wednesday 16 February, marked the entry into force of the Kyoto Treaty, designed to control and reduce the global emission of greenhouse gasses.

Of course, the most noteworthy part of the whole thing is that the US, producer of about a quarter of the world’s greenhouse gasses, is not a signatory. Nevertheless, it’s great to see the EU, most notably, committed to controlling emissions.

There’s lots that could be said, and perhaps I will if people are interested. But for now, I’ll comment on the three most commonly used criticisms of the treaty: developing country exceptions; effects on economic growth; and effectiveness in reducing emissions.
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