The Effects of Energy Price Changes on Commodity Prices, Interprovincial Trade, and Employment / James R. Melvin.

Format:

Book

Author/Creator:

Melvin, James R., Author.

Contributor:

Ontario Economic Council.

Series:

Ontario Economic Council research studies ; 3.

Heritage

Language:

English

Subjects (All):

Petroleum industry and trade--Ontario.

Petroleum industry and trade.

Petroleum products--Prices--Canada.

Petroleum products.

Interstate commerce--Canada.

Interstate commerce.

Ontario.

Canada.

Physical Description:

1 online resource (106 pages) : illustrations.

Place of Publication:

Toronto : University of Toronto Press, [2019]

Language Note:

In English.

Summary:

This study investigates how an increase in the price of petroleum and natural gas would alter commodity prices in Ontario, and then estimates the effects on production and employment. A 100 per cent increase in energy prices is assumed. Using the Ontario input-output table it is found that commodity price increases would be relatively small, on average 2.7 per cent over-all and less than 1.6 per cent in basic manufacturing. However, using Cobb-Douglas utility functions it is also calculated that the Ontario labour force would suffer an employment reduction of 2 to 4 per cent. Economic policy alternatives open to Ontario are then considered. Subsidies to offset commodity price increases would be very expensive and difficult to administer. Retaliatory measures, such as a change in the Ontario Corporate Income Tax, would be inefficient. It is concluded that from Ontario's point of view, the best economic policy would be to attempt to ensure that petroleum and natural gas prices remain uniform throughout Canada.

Contents:

Frontmatter

Contents

1. Introduction

2. Interprovincial trade restrictions

3. A general equilibrium analysis of energy costs

4. Provincial policy options

5. Conclusions

Bibliography

Notes:

Includes bibliographical references (pages [105]-106).

Description based on online resource; title from PDF title page (publisher's Web site, viewed 26. Nov 2019)

ISBN:

1-4875-7371-5

OCLC:

1129175650