{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Political Economy of Demand

O hard to deal with public goods cant keep you out or

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: conversion in power plants, cheap feedstock for chemicals. o Why should we disrupt the markets? Sell it to Japan/Europe? Disrupt Russian hegemony. Take away energy is policy weapon. o Set the foundation for stable markets in Europe. • Arguments in favor of not disrupting. o Increase $ that US pays. o Lobbying on hill. o Political aspect. o Might make shale gas production increase further. o Domestic advantage – if you were advising a developing country what to do with gas, you would say, before you export to neighbors can you add value domestically. Employ people? Diversify exports? o Only country having this crisis with us is Israel. o Are interests and how to prioritize is not clear. o All our assumptions are that we want to buy , but now we want to sell. • Market Failure: When do Markets Perform Poorly? o Markets deal poorly with the side effect. • Market Failures o Public goods. o Excludable / rivalry (is it zero sum) – 2 axes. o Markets work really well with private goods. o Public goods – if you don’t play by the rules, I can lock...
View Full Document

{[ snackBarMessage ]}