Publications: Notes at the Margin

Breaking Out of Silos: Let's Put Economics Back in Energy Economics (June 22, 2015)

 

I have long maintained that the phrase “energy economics” is an oxymoron. Critics of the Vietnam War once said the same about “military intelligence.” The acumen of our armed forces may have outgrown the oxymoron label since the 1970s. Those who study energy markets have not. A recent report by Reuters analyst John Kemp is a case in point. I took Kemp to task in the most recent Petroleum Economics Monthly and in the June 8 Notes at the Margin for his claim that lower prices had stimulated US gasoline demand. Kemp responded last week with a column titled “Cheaper Prices Spur US Gasoline Demand.”[1] Sorry. John. Sorry, IEA. Sorry, others who believe low US gasoline prices have caused the surge in gasoline demand. The good economic evidence rejects this inference.



[1] See John Kemp, “Cheaper Prices Spur US Gasoline Demand,” Reuters, June 17, 2015 [http://goo.gl/gy4pT4].

 

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