Research Library

With conflict on two fronts, and natural gas squarely in the crosshairs, the U.S. LNG industry will be needed to maintain commitments and support allies and trading partners in both Europe and Asia this winter.

Proactive U.S. efforts to enhance Europe’s gas security and blunt Russia’s ability to use gas for hybrid warfare would directly support its ability to sustain and upgrade its combat credibility in East and Southeast Asia. By incentivizing upstream gas investments globally through the demand call associated with a broader European move to replace Russian gas with LNG, gas geoeconomics would over the medium term also help increase global LNG supply to the ultimate benefit of U.S. allies in Asia, foremost among them Japan and South Korea.

Governments in the Gulf Cooperation Council have used oil revenues to provide infrastructure to promote welfare, such as health care, education and public sector jobs, writes the author. This working paper is part of a series titled “The Role of Foreign Direct Investment in Resource-Rich Regions.”

This working paper studies optimal taxation in a dynamic stochastic economy in which there is uncertainty about the effects of climate change. It concludes that model uncertainty has significant quantitative implications regarding optimal greenhouse gas emissions and the optimal mix of fossil fuel used.