This workshop is intended for researchers and doctoral students in economics who are interested in resource and environmental economics. The webinar is led by a team of researchers composed of Geir B. Asheim (Oslo University), Hassan Benchekroun (McGill University), Sophie Bernard (Polytechnique Montréal), Etienne Billette de Villemeur (Université de Lille, UQAM), Robert Cairns (McGill University), Justin Leroux (HEC Montréal), and Charles Séguin (UQAM).
This workshop on natural resource and environmental economics will host Steve Salant, Professor at University of Michigan, et Gerard Van der Meijden, Professor at Vrije Universiteit Amsterdam.
→ This event will be in English.
- Steve Salant (University of Michigan)
The Dynamics of Evasion: The Price Cap on Russian Oil Exports and the Amassing of the Shadow Fleet
Abstract
To reduce funds for Russia’s Ukraine invasion, Western governments imposed a price ceiling on Russian seaborne oil exports using Western services. To sell above that ceiling, Russia developed a “shadow fleet” which uses no such services. We use a calibrated model driven by this fleet’s expansion to assess various sanctions. While all sanctions reduce the present value of Russia’s profits, we find that the tighter the ceiling and the tighter the enforcement, the less harm sanctions impose, contradicting conventional wisdom based on Hotelling lemma. However, policies to reduce the shadow fleet’s size may increase the sanction’s effectiveness.
- Gerard Van der Meijden (Vrije Universiteit Amsterdam)
Abstract to be published soon
