Players & Market Power Flashcards
What are the supply players and how do they differ?
NOCs follow governmental rationality
ICOs follow private equity rationality and are vertically integrated companies (supply Upstream and Downstream)
Independents are smaller companies and that follow economical government rationality
Why does monopoly in Energy need to be regulated by government?
Low elasticity
What is the ricardian rent?
Surplus profit that landowners earn due to the scarcity of the land. The price can be charged at high price even if the land is not improved
Why are costs cash higher with government payment and vice versa?
Due to taxes, subsidies and regulations of the oil market
What is the pigouvian tax ?
Application of a tax that takes into consideration social costs due to externalities created by the company (compensation for pollution)
How is the GDP related to the energy consumption?
A high GDP growth normally is correlated positively to a high energy consumption due to industrialisation of countries
Why does Canada, Norway and USA have high GDP per capita?
Canada = geographical location and conditions
USA = economical industrialisation
Norway = energy efficiency
What is the Jevon’s paradox or rebound effect?
High energy consumption due to energy efficiency
