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research article

A Metamodel of the Oil Game under Climate Treaties

Haurie, Alain
•
Vielle, Marc  
2011
INFOR: Information Systems and Operational Research

A climate treaty like the one which should replace the Kyoto Protocol after 2012, may have important impacts on the oil, gas and coal markets. The full impact of such a treaty will not be felt before 2030. In this paper one uses a computable general equilibrium model as a simulator of the world economy to obtain a description of the demand laws for oil, gas and coal in a period centered in 2030. One then uses a hierarchical game à la Stackelberg where OPEC is a price fixing leader and a competitive fringe replies competitively according to a supply-demand equilibrium for the three competitive energy forms, oil, gas and coal. This permits one to assess the possible power of OPEC to counteract the effect of a world tax on carbon content. One shows the possible effect on oil price, OPEC wealth or market share, and global emissions reduction achieved for different tax levels.

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Type
research article
DOI
10.3138/infor.48.4.215
Web of Science ID

WOS:000290699800004

Author(s)
Haurie, Alain
Vielle, Marc  
Date Issued

2011

Published in
INFOR: Information Systems and Operational Research
Volume

48

Issue

4

Start page

215

End page

228

Subjects

Climate change negotiations

•

Oil price

•

Hierarchical game model

•

Statitical emulation

•

Computable general equilibrium model

Editorial or Peer reviewed

REVIEWED

Written at

EPFL

EPFL units
LEURE  
Available on Infoscience
April 6, 2011
Use this identifier to reference this record
https://infoscience.epfl.ch/handle/20.500.14299/66005
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