Publication Date
8-6-2025
Abstract
This paper explores how cartel operations may create a longterm paradox of selfharm because research and development into substitutes becomes incentivized. OPEC is used as the case study, and I hypothesize that the intensity of quotas is directly proportional to research and development spending in alternative energy sources, over time diminishing global dependence on oil. To test this, I gathered data from 1965 until 2023 on the global energy market. In conclusion, the data suggested alternative explanations: oil boasts a tenacious price inelasticity of demand, OPEC has foreseen the paradox and counters with moderate quotas, or a combination of the two.
Recommended Citation
Sloan, Daniel P.
(2025)
"Double-Edged Sword: OPEC Production Catalyzing Alternative Energy Development,"
Venture: The University of Mississippi Undergraduate Research Journal: Vol. 7, Article 6.
Available at:
https://egrove.olemiss.edu/umurjournal/vol7/iss1/6
