Export Land Model - Theory

Theory

As world oil exports approach (or pass) a global peak, the price of exported oil increases and further stimulates domestic economic growth and oil consumption in Export-Land countries, creating a positive feedback process between declining exports and higher prices. Eventually, however, the level of export decline outpaces the increasing oil price, slowing domestic growth. In some cases, an Export Land eventually becomes a net importer. It is unlikely that an Export Land would constrain domestic consumption to help importing countries. In fact, many oil exporting countries subsidize domestic consumption below price levels defined by the world market.

Read more about this topic:  Export Land Model

Famous quotes containing the word theory:

    Freud was a hero. He descended to the “Underworld” and met there stark terrors. He carried with him his theory as a Medusa’s head which turned these terrors to stone.
    —R.D. (Ronald David)

    Thus the theory of description matters most.
    It is the theory of the word for those
    For whom the word is the making of the world,
    The buzzing world and lisping firmament.
    Wallace Stevens (1879–1955)

    The theory of the Communists may be summed up in the single sentence: Abolition of private property.
    Karl Marx (1818–1883)