• Initiative -
  • Type KAPSARC journal article
  • Date 17 October 2021
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Abstract

The choice of a modeling approach is driven by the oil policy or market question that needs to be addressed. We provide the non-modeling community with insightful information on oil market models, shedding light on the economic interpretation of technical aspects (such as the meaning of the costs associated with certain types of constraints), but without introducing any mathematical formulations. We also emphasize the reasonings and assumptions underlying the modeling structures and solutions proposed in the literature. We first review how models have usually represented market fundamentals. We then examine recent modeling developments addressing market issues (such as the impact of the shale oil revolution and the shift in producers’ behavior) and policy questions (such as the use of spare capacity to stabilize prices, the lifting of export controls, and the management of uncertainties surrounding the energy transition) that have emerged since the Great Recession.

 

 

https://doi.org/10.1016/j.enpol.2021.112606

Science Direct

Authors

Olivier Durand-Lasserve

Research Fellow Olivier is a research fellow in the Energy Systems and Macroeconomics program. Previously, he was an economist at the Organisation… Olivier is a research fellow in the Energy Systems and Macroeconomics program. Previously, he was an economist at the Organisation for Economic Co-operation and Development (OECD) and at the International Energy Agency (IEA) in Paris where his activities covered macroeconomic policy analysis and applied general equilibrium modeling. He contributed to various modeling studies on the assessment of the macroeconomic, environmental and distributional consequences of energy and environmental policies. He also worked on the land-water-energy nexus and on the economic consequences of air pollution. Before he joined the OECD, Olivier worked at ENGIE, in Paris, where he developed an in-house modeling framework for quantifying global long-term energy-economy scenarios. While completing his Ph.D., he was a research assistant at the Center for Operations Research and Econometrics (CORE) in Louvain-la-Neuve, Belgium.

Expertise

  • Macroeconomic consquences of energy policies

Publications See all Olivier Durand-Lasserve’s publications

Axel Pierru

Program Director Axel is the director of KAPSARC’s Energy and Macroeconomics program. From October 2018 to March 2019, he was KAPSARC’s interim… Axel is the director of KAPSARC's Energy and Macroeconomics program. From October 2018 to March 2019, he was KAPSARC's interim vice president of research. Axel joined KAPSARC in 2011, after spending 15 years at IFP Energies Nouvelles in France, where he led research, consulting and training projects. Axel received his Ph.D. in economics from the Pantheon-Sorbonne University in Paris. He undertakes applied research that combines methodological innovation with practical relevance for policymaking. His research is focused on energy economics, policy, finance, oil pricing, and energy-exporting economies. Axel has been published extensively, with over 40 peer-reviewed journal papers to his name.

Expertise

  • Energy modelling
  • Energy economics
  • Energy policy
  • Oil pricing and finance

Publications See all Axel Pierru’s publications

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