Design and implementation of the price cap on Russian oil exports.
Basic economics teaches that price caps are bad – limiting the price of a good distorts demand and discourages producers from supplying the market. So why did the Biden Administration, led by Janet Yellen, the consummate economist, champion a price cap on oil from Russia after it invaded Ukraine in...
| Published in: | Journal of Comparative Economics Vol. 51; no. 4; pp. 1244 - 1253 |
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| Main Authors: | , , |
| Format: | Article |
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Academic Press Inc.
Dec2023
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| Subjects: | |
| Online Access: | View this record in EBSCOhost |
| fields | @attributes: recordID: 1 pdfLink: plink: https://search.ebscohost.com/login.aspx?direct=true&db=ssf&AN=174297022&site=ehost-live header: @attributes: shortDbName: ssf uiTerm: 174297022 longDbName: Social Sciences Full Text (H.W. Wilson) uiTag: AN controlInfo: bkinfo: jinfo: jid: 01475967 JCE jtl: Journal of Comparative Economics issn: 01475967 maglogo: N pubinfo: dt: Dec2023 vid: 51 iid: 4 pid: 735 pub: Academic Press Inc. artinfo: ui: 174297022 10.1016/j.jce.2023.06.001 ppf: 1244 ppct: 9 formats: tig: atl: Design and implementation of the price cap on Russian oil exports. aug: au: Johnson, Simon Rachel, Lukasz Wolfram, Catherine affil: MIT Sloan, NBER, and CEPR, United States University College London, United Kingdom MIT Sloan and NBER, United States su: Ukraine Russia Yellen, Janet, 1946- Prices Economics education Price regulation Petroleum Petroleum sales & prices Presidential administrations sug: subj: Prices Economics education Ukraine Russia Crude Petroleum and Natural Gas Extraction Petroleum and petroleum products merchant wholesalers Petroleum Bulk Stations and Terminals Petroleum and Petroleum Products Merchant Wholesalers (except Bulk Stations and Terminals) Pipeline Transportation of Crude Oil Regulation, Licensing, and Inspection of Miscellaneous Commercial Sectors Price regulation Petroleum Petroleum sales & prices Presidential administrations Yellen, Janet, 1946- keyword: Energy Oil Price cap Sanctions War Energy Oil Price cap Sanctions War ab: Basic economics teaches that price caps are bad – limiting the price of a good distorts demand and discourages producers from supplying the market. So why did the Biden Administration, led by Janet Yellen, the consummate economist, champion a price cap on oil from Russia after it invaded Ukraine in 2022? The answer is that this price cap, implemented for crude oil in December 2022 and oil products in February 2023, differs significantly from the standard cap discussed in introductory economics classes. This paper explains these differences and describes the first six months this policy has been in existence. We provide background on Russian oil trade and describe the goals, structure, enforcement and economics of the price cap. We review the main concerns and contrast them with the outcomes observed to date. pubtype: Academic Journal doctype: Article src: R language: English refInfo: copyright: @attributes: flag: N holdings: @attributes: islocal: N |
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