Allocating Petroleum Products During Oil Supply Disruptions

Abstract
Four options for allocating a long-term, severe shortfall of petroleum imports are analyzed: oil price and allocation controls, coupon gasoline rationing, variable gasoline tax and rebate, and no oil price controls with partial rebates. Each of these options is evaluated in terms of four criteria: microeconomic effects, macroeconomic effects, equity, and practical problems. The implications of this analysis for energy contingency planning are discussed.

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