Advanced Engineering Economics
Petroleum industry and trade -- Economic aspects, Energy policy, Gasoline -- Taxation, Engineering economy
With the current gasoline price skyrocketing beyond people’s expectation, it causes one to wonder what is going on with the global economy with respect to oil. For the past years various institutions and scientists conducted research on the potential of an oil crisis. It is predicted that they will be an oil shortage by the year 2012 – 2015. With this knowledge, this paper sets up to analyze the impact of oil crisis on the US economy with respect to gasoline tax revenue – which is one of the major source of revenue that the government use to maintain the network of national highways throughout the US and other programs. The paper will also present how the shortage of oil can have a triple down effect of the government are pressure to raise the gasoline tax rate which can inflate the gas price and makes it goes up. This in turn could have side effects to the end consumers and potentially slow or cripple the US economy. The paper further narrows down the focus of inflation on gasoline versus consumer products such as milk over the years of history and show how fast gasoline price has risen to help the audience relates how this can effect them. The paper then offers a potential solution based upon Oregon’s future plans for solving its tax revenue from gasoline. Finally the paper concludes with some recommendations that the government may take in handling the oil shortage.
Note: The presentation associated with this report is included as a supplemental file.
Attavavuthichai, Voraphol; Dang, John; Lertsathitphong, Kiatiphong; Simoes, Joao; and Wathanachinda, Natchanan, "The Oil Economy: How an Oil Crisis Impact the U.S. Economy" (2004). Engineering and Technology Management Student Projects. 1406.