Economics at your fingertips  

Long-Term Contracts for Crude Oil imports into Costa Rica: A General Equilibrium Analysis

Christian Dufournaud, Carlos Raul Gutierrez, Lodetrijk Berlage and Peter P. Rogerst

The Energy Journal, 1989, vol. Volume 10, issue Number 1, 119-125

Abstract: Energy is critical for all human activity. Many countries import a major proportion of essential energy resources such as oil, for which the ability to substitute alternative inputs is difficult in both the short and long run. A possible response to the prospect that energy prices can fluctuate is for governments to negotiate long-term contracts with suppliers to mitigate sudden price shocks. This strategy is, however, not cost-free. It is equally rational for suppliers to negotiate high prices which protect them from the prospect of having to supply their oil at a lower price than they could anticipate in the future. A country seeking long-term protection from unstable oil prices via long-term contracts, therefore, faces higher current prices.

JEL-codes: F0 (search for similar items in EconPapers)
Date: 1989
References: Add references at CitEc
Citations Track citations by RSS feed

Downloads: (external link) (text/html)
Access to full text is restricted to IAEE members and subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Ordering information: This journal article can be ordered from

Access Statistics for this article

More articles in The Energy Journal from International Association for Energy Economics Contact information at EDIRC.
Bibliographic data for series maintained by David Williams ().

Page updated 2018-10-27
Handle: RePEc:aen:journl:1989v10-01-a10