We argue that these factors should ideally be based on energy and economic conditions that oug ht to be taken into consideration when production quotas are assigned. Thus, in this study, importance weights based on proven reserves, available productive capacity, GDP per capita and domestic investment needs are first obtained for allocating fair quo tas to each member country in the period 1982-1990. Then a degree of fairness optimality index is computed for each member country and is applied to measure the performance of these countries during the quota system period. Our investigations reveal that OPEC appears to give greater importance to the energy factors, proved reserves and productive capacity, although domestic investment needs seem to play a significant role in determining the direction of quota assignments.
Statistical tests reveal that all the weights are consistent over time.
Finally, we observe that the member countries whose ideal quotas are based on low GDP per capita have higher degrees of optimality than those whose ideal quotas are based on proven reserves or available productive ca pacity. The computed importance weights and optimality measures can be used both by OPEC and energy analysts interested in OPEC behavior. Abstract Energy conservation regulations, such as fuel taxes and fuel economy mandates for automobiles, are often assumed to reduce air pollution in lock step with the reduction in fuel consumption. Under the current system of tailpipe emissions regulations in the United States, this is not necessarily true. This paper uses a simple graphical analysis to illustrate the relative impact of fuel taxes and fuel economy standards on pollution levels given the current tailpipe emissions standards and an alternative emis sions standard.