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Author Archives: Lucas Davis
Venezuelan Gas Guzzlers
Since reading Catherine’s post last week (link here), I have been thinking a lot about Venezuela’s gasoline subsidies. Venezuela has the cheapest gasoline on the planet. At official exchange rates, gasoline costs only $.06 per gallon; at black market exchange rates gasoline is even cheaper. … Continue reading
Fuel Economy Standards and Used Cars
Last August the Obama administration announced new fuel economy standards. Cars and trucks sold in the United States must reach an average fuel economy of 41.7 miles per gallon by 2020, increasing to 54.5 miles per gallon by 2025. Supporters of the tightened standards … Continue reading
Renting Inefficiency
(This blog post co-authored by David I. Levine) When people own a home or condominium, they have incentives to think about the efficiency of their appliances. Thus, more than a third of homeowners’ major appliances such as fridges, dishwashers and clothes … Continue reading
Posted in Uncategorized
Tagged energy efficiency, landlord tenant problem, principal-agent problem
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Natural Gas Shortages in Mexico
Whereas in the United States there are thousands of natural gas producers, in Mexico there is only one, Petróleos Mexicanos, also known as PEMEX. And, as is the case for many state-owned companies, the prices charged by PEMEX are government … Continue reading
Optimal Federalism
Last week Mitt Romney released a new energy plan (available here). The plan includes a proposal to reduce federal oversight of oil and gas drilling on public lands. National standards for air and water pollution would remain in place, but the … Continue reading
Bonding Requirements for Natural Gas Producers
Hydraulic fracturing and other recent technological advances have dramatically increased the availability of natural gas, providing large benefits to the U.S. economy. At the same time, however, these new forms of drilling raise a number of potential environmental concerns, in particular, … Continue reading
Free Lunch?
Supporters of energy-efficiency policies argue that they are a “win-win”, helping to reduce energy expenditures while also reducing carbon dioxide emissions and other negative externalities from energy use. This much discussed McKinsey report, for example, argues that energy-efficiency investments are … Continue reading
