Peer Reviewed Publications:
- Kheiravar, Khaled H., and C.-Y. Cynthia Lin Lawell. (forthcoming). Econometric modeling of the world oil market as a dynamic game. In Stephane Goutte and Duc Khuong Nguyen (Eds.), Handbook of Energy Finance: Theories, Practices and Simulations. World Scientific Publishing.
- Kheiravar, Khaled H., C.-Y. Cynthia Lin Lawell, and Amy Myers Jaffe. (2018). A structural econometric model of the dynamic game between petroleum producers in the world petroleum market. Working paper, Cornell University. (Under review) working_paper.pdf
Abstract: In this paper, we develop and estimate a structural econometric model of the dynamic game among petroleum-producing firms in the world petroleum market. Our model allows firms that are at least partially state-owned to have objectives other than pro t maximization alone. We use the structural econometric model to analyze the e effcts of changes in OPEC membership, a ban on mergers, the privatization of state-owned oil companies, and demand shocks on the petroleum industry. Our modeling outcomes can be used to help inform decision-making and policy design. The results of our research will be of interest to academics, policy-makers, entrepreneurs, and business practitioners, including oil companies, alike.
- Kheiravar, Khaled H., and C.-Y. Cynthia Lin Lawell. (2018). The effects of transportation fuel subsidies on air quality: Evidence from the Iranian subsidy reform. Working paper, Cornell University.
Abstract: Gasoline taxes have been touted by many economists as an efficient and relatively simple tool to address environmental concerns and other problems associated with gasoline consumption. However, rather than removing subsidies and increasing gasoline taxes, many countries still subsidize gasoline, which may have the opposite effect of exacerbating the environmental concerns and other problems associated with gasoline consumption. The prevalence of gasoline subsidies worldwide and the fall in the global mean gasoline tax may exacerbate air pollution from the resulting increase in gasoline consumption. The Iranian government has heavily subsidized petroleum products, utilities, as well as a few food products for over three decades since the early 1980s. These subsidies were originally introduced to manage the economic challenges during the war against Iraq. The energy subsidies in particular turned Iran into one of the most energy intensive countries due to the over-consumption resulting from artificially low national energy prices, and over the past two decades different administrations have tried to cut back on the energy subsidies. In this paper, we evaluate the effects of the Iranian subsidy reform on air quality.
- Beaudoin, Justin, Yuan Chen, David R. Heres, Khaled H. Kheiravar, Gabriel E. Lade, Fujin Yi, Wei Zhang, and C.-Y. Cynthia Lin Lawell. (2018). Environmental policies in the transportation sector: Taxes, subsidies, mandates, restrictions, and investment. Working paper, Cornell University.
Abstract: The transportation sector is associated with many negative externalities, including air pollution, global climate change, and traffic congestion. In this paper we discuss several possible policies for addressing the emissions and other environmental externalities from the transportation sector, including taxes, subsidies, mandates, restrictions, and investment. Most economists generally recommend that policy-makers use incentive- (or market-) based instruments as opposed to command and control policies whenever possible. However, various economic and political constraints can preclude policy instruments that would in theory achieve a first-best outcome from being employed, and policy-makers have often implemented alternative policies such as subsidies, mandates, restrictions, and/or investment instead. Our discussion and analysis of these policies draws upon and synthesizes research using theoretical models, behavioral and experimental economics, empirical analyses, and structural econometric modeling.