Comments on: Of carbon taxes and price elasticities http://modeledbehavior.com/2011/04/27/of-carbon-taxes-and-price-elasticities/ Tue, 21 May 2013 01:21:34 +0000 hourly 1 http://wordpress.com/ By: Elasticity contradictions « MetaSD http://modeledbehavior.com/2011/04/27/of-carbon-taxes-and-price-elasticities/#comment-29270 Mon, 11 Mar 2013 20:43:35 +0000 http://modeledbehavior.com/?p=8435#comment-29270 [...] at top.) However, near-zero results are far from the means of such surveys. Adam Ozimek at Modeled Behavior examines some of the reasons to be cautious of small elasticities rather [...]

]]> By: Anon http://modeledbehavior.com/2011/04/27/of-carbon-taxes-and-price-elasticities/#comment-28544 Thu, 15 Nov 2012 19:06:33 +0000 http://modeledbehavior.com/?p=8435#comment-28544 Following up the David and Kilian comment on taxes vis-a-vis prices, recent research has been completed on the relative tax and price elasticities with respect to an actual carbon tax (British Columbia): http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2131468. BC residents are nearly 4.9 times more responsive to carbon taxes than they are to equivalent gas price increases.

]]> By: Oil, policy, and politics « Rturpin's Blog http://modeledbehavior.com/2011/04/27/of-carbon-taxes-and-price-elasticities/#comment-12742 Sun, 01 May 2011 15:26:53 +0000 http://modeledbehavior.com/?p=8435#comment-12742 [...] Oil, policy, and politics May 1, 2011 by rturpin Kevin Drum argues against a Pigovian tax on oil, based on a recent IMF study that the demand curve is inelastic. Ryan Avent at The Economist points out that makes an oil tax a great basis for revenue. Adam Ozimek takes a closer look at the evidence. [...]

]]> By: Coby 7 Portable Dvd Player | DVD movies and MP3 music http://modeledbehavior.com/2011/04/27/of-carbon-taxes-and-price-elasticities/#comment-12722 Sat, 30 Apr 2011 19:34:57 +0000 http://modeledbehavior.com/?p=8435#comment-12722 [...] is receiving overall galore exceedingly nice reviews and may be found in multiple colors. Retail price for the DVP FX930 is around $190, but may be found rather often for around $140 and now and then [...]

]]> By: Rethinking Rethinking the Gas Tax | Economy news http://modeledbehavior.com/2011/04/27/of-carbon-taxes-and-price-elasticities/#comment-12712 Sat, 30 Apr 2011 09:06:21 +0000 http://modeledbehavior.com/?p=8435#comment-12712 [...] Adam Ozimek argues that we shouldn’t jump to conclusions about the ineffectiveness of a gas tax, saying that the elasticities I blogged about yesterday were from IMF estimates that are substantially lower than other estimates.  You should read the whole thing, but I think there are two points worth highlighting. The first is that elasticities of demand for oil seem to be falling; they were much higher in the seventies than they are now, especially here.  This makes perfect sense: when prices spike, people invest in making their lives more efficient, and when prices fall, they don’t suddenly rip out the insulation and sell the Prius.  (Though anecdotally, when I bought my Mini in mid-2008, oil prices were very high, and so were prices for small cars–dealers couldn’t keep small cars on the lots.  A year later, oil prices had fallen, and I’m told the market for small cars had evaporated–those who were buying, were buying big, and dealers couldn’t move little cars even at a loss).  When you’re very inefficient, small changes in efficiency mean big reductions in fuel usage–and spending.  But as your products become more efficient, the potential gains get smaller and smaller: [...]

]]> By: What’s the matter with elasticities? (Answer: maybe nothing) | Grist http://modeledbehavior.com/2011/04/27/of-carbon-taxes-and-price-elasticities/#comment-12702 Fri, 29 Apr 2011 20:48:44 +0000 http://modeledbehavior.com/?p=8435#comment-12702 [...] As I was posting this piece, a colleague directed me to an April 27 post by Adam Ozimek, "Of carbon taxes and price elasticities", that makes many of the points offered here … and more [...]

]]> By: What’s the matter with elasticities? (Answer: maybe nothing) | Wealthywaste.com http://modeledbehavior.com/2011/04/27/of-carbon-taxes-and-price-elasticities/#comment-12701 Fri, 29 Apr 2011 20:41:31 +0000 http://modeledbehavior.com/?p=8435#comment-12701 [...] Link Summaryhttp://www.wired.com/…/ff_komanoff_traffic/http://www.theatlanti…-carbon-taxes/237896/http://www.theatlanti…urce-fuels-tax/31386/http://theamericansce…-tax-words-vs-numbershttp://earlywarn.blog…/04/wow-just-wow.htmlhttp://www.komanoff.n…_Price_Elasticity.xlshttp://www.komanoff.n…_Carbon_Tax_Model.xlshttp://modeledbehavio…d-price-elasticities/http://www.grist.org/…-at-indian-point-meanhttp://www.grist.org/…owntown-san-franciscohttp://www.grist.org/…h—–hope-or-despair [...]

]]> By: Stuart Staniford http://modeledbehavior.com/2011/04/27/of-carbon-taxes-and-price-elasticities/#comment-12689 Fri, 29 Apr 2011 14:18:58 +0000 http://modeledbehavior.com/?p=8435#comment-12689 I was the blogger who first noticed the IMF’s estimates and to whom Kevin Drum linked initially.

Today I have a post with some simple regressions on the annual global stats for GDP and oil price/quantity from 1990-2009. It turns out that once you control for GDP changes, price really does have a pretty much undetectable correlation with quantity, which I imagine is why the IMF is coming up with tiny price elasticities.

I agree that longer term elasticities will be higher that short term, and that elasticities will get larger as prices go higher (points I made in my original post).

]]> By: Why A Gas Tax May Actually Work | AssessFinancial.com http://modeledbehavior.com/2011/04/27/of-carbon-taxes-and-price-elasticities/#comment-12675 Fri, 29 Apr 2011 03:24:13 +0000 http://modeledbehavior.com/?p=8435#comment-12675 [...] A Gas Tax May Actually Work April 28th, 2011 Adam Ozimek argues that we shouldn’t jump to conclusions about the ineffectiveness of a gas tax, saying [...]

]]> By: bdbd http://modeledbehavior.com/2011/04/27/of-carbon-taxes-and-price-elasticities/#comment-12644 Thu, 28 Apr 2011 16:25:06 +0000 http://modeledbehavior.com/?p=8435#comment-12644 Aren’t long run estimates meant to capture the effects of technological changes? Of course, estimates derived from data that reports past technological changes may not accurately represent future technical responses, but that’s a somewhat different issue.

]]> By: Yglesias Elasticity and Major Policy Shifts « Politics http://modeledbehavior.com/2011/04/27/of-carbon-taxes-and-price-elasticities/#comment-12642 Thu, 28 Apr 2011 12:53:19 +0000 http://modeledbehavior.com/?p=8435#comment-12642 [...] Adam Ozimek helpfully summarizes someresearch on the elasticity of the demand for oil and gasoline: [...]

]]> By: Rethinking Rethinking the Gas Tax | LesBnB.com http://modeledbehavior.com/2011/04/27/of-carbon-taxes-and-price-elasticities/#comment-12615 Thu, 28 Apr 2011 00:07:33 +0000 http://modeledbehavior.com/?p=8435#comment-12615 [...] Adam Ozimek argues that we shouldn’t jump to conclusions about the ineffectiveness of a gas tax, saying that the elasticities I blogged about yesterday were from IMF estimates that are substantially lower than other estimates.  You should read the whole thing, but I think there are two points worth highlighting. The first is that elasticities of demand for oil seem to be falling; they were much higher in the seventies than they are now, especially here.  This makes perfect sense: when prices spike, people invest in making their lives more efficient, and when prices fall, they don’t suddenly rip out the insulation and sell the Prius.  (Though anecdotally, when I bought my Mini in mid-2008, oil prices were very high, and so were prices for small cars–dealers couldn’t keep small cars on the lots.  A year later, oil prices had fallen, and I’m told the market for small cars had evaporated–those who were buying, were buying big, and dealers couldn’t move little cars even at a loss).  When you’re very inefficient, small changes in efficiency mean big reductions in fuel usage–and spending.  But as your products become more efficient, the potential gains get smaller and smaller: [...]

]]> By: Residential Natural Gas Fuel Cell » Hydrogen Cars and Fuel Cells - http://modeledbehavior.com/2011/04/27/of-carbon-taxes-and-price-elasticities/#comment-12614 Wed, 27 Apr 2011 23:49:59 +0000 http://modeledbehavior.com/?p=8435#comment-12614 [...] gas, selling it to local distribution utilities, which sold that gas to it is customers. The price for which the manufacturers sold the natural gas to the transportation pipelines and the [...]

]]> By: Ryan P http://modeledbehavior.com/2011/04/27/of-carbon-taxes-and-price-elasticities/#comment-12605 Wed, 27 Apr 2011 21:05:40 +0000 http://modeledbehavior.com/?p=8435#comment-12605 What I really don’t understand is the reaction to these estimates (that is, that if elasticities are low enough, we need to find a different tool to reduce consumption). The whole argument for a Pigovian tax is that there’s an externality (that prices don’t convey the full social cost of gas consumption, say) and that you fix this by fixing the price. A very small (but non-zero) elasticity wouldn’t change that argument; it would just mean that there wasn’t a whole lot of welfare loss due to the externality.

And it certainly wouldn’t mean we should find another tool to further reduce gas consumption — if that ain’t a solution in search of a problem, I don’t know what is.

]]> By: Commodities, Inflation & Strange Bedfellows-Daily Forex and Stock | Daily Forex and Stock http://modeledbehavior.com/2011/04/27/of-carbon-taxes-and-price-elasticities/#comment-12601 Wed, 27 Apr 2011 15:07:10 +0000 http://modeledbehavior.com/?p=8435#comment-12601 [...] Of carbon taxes and price elasticities « Modeled Behavior [...]

]]> By: Roland http://modeledbehavior.com/2011/04/27/of-carbon-taxes-and-price-elasticities/#comment-12598 Wed, 27 Apr 2011 13:19:29 +0000 http://modeledbehavior.com/?p=8435#comment-12598 And long run estimates are sensitive to technological changes aimed at efficiency or substitution. There is evidence that these are accelerating. Of course taxing oil so that we plug in and power our cars with coal may not be a big improvement from the point of view of carbon..

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