Pub Date : 2018-03-01DOI: 10.5547/2160-5890.8.2.JBLA
J. Blazquez, B. Manzano, L. Hunt, Axel Pierru
What is the value of saving a barrel of oil that would otherwise had been consumed domestically? This study explores the question, taking a long-run perspective into a general equilibrium approach. In the case of Saudi Arabia, the difference between the domestic price of oil and the international price represents an opportunity to improve economic efficiency across different activities and sectors. In this context, we study different policies aimed to reduce the domestic consumption of oil.
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