Captive markets and climate change: revisiting Edith Penrose’s analysis of the international oil firms in the era of climate change

References

• Altman, R. 2022. “How Bad are Plastics for the Environment, Really?” The Atlantic,February 1, 2022. https://www.theatlantic.com/science/archive/2022/01/plastic-history-climate-change/621033/
   Google Scholar
• Bauer, F., and G. Fontenit. 2021. “Plastic Dinosaurs – Digging Deep into the Accelerating Carbon Lock-In of Plastics.” Energy Policy 156:112418. https://doi.org/10.1016/j.enpol.2021.112418.
   Web of Science ®Google Scholar
• Berle, A. A., and G. C. Means. 1932. The Modern Corporation and Private Property. New York: MacMillan.
   Google Scholar
• Bernanke, B. S. 1983. “Irreversibility, Uncertainty, and Cyclical Investment.” The Quarterly Journal of Economics 98 (1): 85–106. https://doi.org/10.2307/1885568.
   Web of Science ®Google Scholar
• Blondeel, M., and M. Bradshaw. 2022. “International Oil Companies, Decarbonisation and Transition Risks.” In Handbook of International Oil Relations, edited by R. Danreuther and W. Ostrowski, 372–392. Cheltenham, UK: Edward Elgar.
   Google Scholar
• Bonneuil, C., P.-L. Choquet, and B. Franta. 2021. “Early Warnings and Emerging Accountability: Total’s Responses to Global Warming, 1971–2021.” Global Environmental Change 71:102386. https://doi.org/10.1016/j.gloenvcha.2021.102386.
   Web of Science ®Google Scholar
• BP. 2020. Statistical Review of World Energy. London: British Petroleum.
   Google Scholar
• Busch, T., R. Bauer, and M. Orlitzky. 2016. “Sustainable Development and Financial Markets – Old Paths and New Avenues.” Business & Society 55 (3): 303–329. https://doi.org/10.1177/0007650315570701.
   Web of Science ®Google Scholar
• Chandler, A. D. 2002. The Visible Hand: The Managerial Revolution in American Business. Cambridge, Massachusetts: Harvard University Press.
   Google Scholar
• Christophers, B. 2021. “Fossilised Capital: Price and Profit in the Energy Transition.” New Political Economy 27 (1): 146–159. https://doi.org/10.1080/13563467.2021.1926957.
   Web of Science ®Google Scholar
• Colgan, J. D., J. F. Green, and T. N. Hale. 2021. “Asset Revaluation and the Existential Politics of Climate Change.” International Organization 75 (2): 586–610. https://doi.org/10.1017/S0020818320000296.
   Web of Science ®Google Scholar
• Diwan, R. 2007. ”The Current Implications of the World Energy Situation for United States Energy Supplies.” Presentation at Federal Trade Commission Conference, Energy Markets in the 21st Century: Competition Policy in Perspective, Washington DC, April 2007.
   Google Scholar
• ENI. 2015. Fact Book. Rome: EN S.p.A.
   Google Scholar
• ENI. 2020. World Oil Review. Vol. 1. Rome: ENI S.p.A.
   Google Scholar
• Fattouh, B. 2021. Saudi Oil Policy: Continuity and Change in the Era of the Energy Transition. Oxford Institute of Energy Studies. OIES Paper: WPM 81.
   Google Scholar
• Filippi, E., and G. Zanetti. 1971. “Exogenous and Endogenous Factors in the Growth of Firms.” In The Corporate Economy, 144–171. Palgrave Macmillan UK. https://doi.org/10.1007/978-1-349-01110-0_6.
   Google Scholar
• Fisch-Romito, V., C. Guivarch, F. Creutzig, J. Minx, and M. Callaghan. 2021. “Systematic Map of the Literature on Carbon Lock-In Induced by Long-Lived Capital.” Environmental Research Letters 16 (5): 053004. https://doi.org/10.1088/1748-9326/aba660.
   Web of Science ®Google Scholar
• Freeman, C., A. Young, and J. Fuller. 1963. “The Plastics Industry: A Comparative Study of Research and Innovation.” National Institute Economic Review 26 (26): 22–62. https://doi.org/10.1177/002795016302600103.
   Google Scholar
• Green, J., J. Hadden, T. Hale, and P. Mahdavi. 2021. “Transition, Hedge, or Resist? Understanding Political and Economic Behavior Toward Decarbonization in the Oil and Gas Industry.” Review of International Political Economy. https://doi.org/10.2139/ssrn.3694447.
   Web of Science ®Google Scholar
• Hartshorn, J. E. 1962. Oil Companies and Governments: An Account of the International Oil Industry in Its Political Environment. London: Faber and Faber.
   Google Scholar
• Heede, Richard, 2014. Carbon Majors: Accounting for Carbon and Methane Emissions 1854-2010 Methods & Results Report, Commissioned by Climate Justice Programme & Greenpeace International, Climate Mitigation Services, Snowmass, CO.
   Google Scholar
• Henriques, I., and P. Sadorsky. 2011. “The Effect of Oil Price Volatility on Strategic Investment.” Energy Economics 33 (1): 79–87. https://doi.org/10.1016/j.eneco.2010.09.001.
   Web of Science ®Google Scholar
• Hertog, S. 2008. “Petromin: The Slow Death of Statist Oil Development in Saudi Arabia.” Business History 50 (5): 645–667. https://doi.org/10.1080/00076790802246087.
   Web of Science ®Google Scholar
• Hufbauer, G. C. 1965. Synthetic Materials and the Theory of International Trade. London: Gerald Duckworth.
   Google Scholar
• Hughes, L. 2014. Globalizing Oil: Firms and Oil Market Governance in France, Japan, and the United States. Cambridge UK: Cambridge University Press.
   Google Scholar
• IEA 2014. World Energy Investment Report. IEA Publications: Paris
   Google Scholar
• IEA. 2018. The Future of Petrochemicals: Towards More Sustainable Plastics and Fertilisers. Paris: IEA Publications.
   Google Scholar
• IEA. 2020. World Energy Outlook. Paris: IEA Publications.
   Google Scholar
• IPCC. (2018). Special Report on Carbon Dioxide Capture and Storage. https://www.ipcc.ch/site/assets/uploads/2018/03/srccs_wholereport-1.pdf.
   Google Scholar
• Jacobsson, R., and S. Jacobsson. 2012. “The Emerging Funding Gap for the European Energy Sector—Will the Financial Sector Deliver?” Environmental Innovation and Societal Transitions 5:49–59. https://doi.org/10.1016/j.eist.2012.10.002.
   Google Scholar
• Jing, L., H. M. El-Houjeiri, J. C. Monfort, A. R. Brandt, M. S. Masnadi, D. Gordon, and J. A. Bergerson. 2020. “Carbon Intensity of Global Crude Oil Refining and Mitigation Potential.” Nature Climate Change 10 (6): 526–532. (2020). https://doi.org/10.1038/s41558-020-0775-3.
   Web of Science ®Google Scholar
• Kaldor, N. 1957. “A Model of Economic Growth.” The Economic Journal 67 (268, 1): 591–624. https://doi.org/10.2307/2227704.
   Web of Science ®Google Scholar
• Kemfert, C., F. Präger, I. Braunger, Hoffart, F. M., and Brauers, H. 2022. “The Expansion of Natural Gas Infrastructure Puts Energy Transitions at Risk.” Nature Energy 7 (7): 582–587. https://doi.org/10.1038/s41560-022-01060-3.
   Web of Science ®Google Scholar
• Kim, I. 2020. “Swinging Shale: Shale Oil, the Global Oil Market, and the Geopolitics of Oil.” International Studies Quarterly 64 (3): 544–557. https://doi.org/10.1093/isq/sqaa042.
   Web of Science ®Google Scholar
• Klenert, D., Funke, F., Mattauch, L., and O'Callaghan, B. 2020. ”Five Lessons from COVID‑19 for Advancing Climate Change Mitigation.” Environmental and Resource Economics 76: 751–778. https://doi.org/10.1007/s10640-020-00453-w.
   PubMed Web of Science ®Google Scholar
• Knight, F. H. 1921. Risk, Uncertainty and Profit. Boston and New York, US: Houghton Mifflin Company.
   Google Scholar
• Lazonick, W. 2015. Stock Buybacks: From Retain-And-Reinvest to Downsize-And- Distribute. Washington D.C: Center for Effective Public Management, Brookings Institution.
   Google Scholar
• Le Billon, P., and Kristofferson, B. 2020. ”Just cuts for fossil fuels? Supply-side carbon constraints and energy transition.” Environment and Planning A: Economy and Space 52 (6): 1072–1092.
   Web of Science ®Google Scholar
• Machlup, F., and Penrose, E. 1950. ”The Patent Controversy in the Nineteenth Century.” The Journal of Economic History 10 (1): 1–29.
   Web of Science ®Google Scholar
• Malm, A. 2016. Fossil Capital: The Rise of Steam Power and the Roots of Global Warming. London: Verso Books.
   Google Scholar
• Mandel, E. 1968. Marxist Economic Theory. London: Merlin Press.
   Google Scholar
• Marcel, V. 2006. Oil Titans: National Oil Companies in the Middle East. Washington: Brookings Institution Press.
   Google Scholar
• Marris, R., and A. Wood. 1971. The Corporate Economy: Growth, Competition and Innovative Potential. Cambridge, Mass: Harvard University Press.
   Google Scholar
• Nelson, R. R., and S. G. Winter. 1982. “The Schumpeterian Tradeoff Revisited.” The American Economic Review 72 (1): 114–132.
   Web of Science ®Google Scholar
• Ogbuigwe, A. 2018. “Refining in Nigeria: History, Challenges and Prospects.” Applied Petrochemical Research 8 (4): 181–192. https://doi.org/10.1007/s13203-018-0211-z.
   Web of Science ®Google Scholar
• Palladino, L., and W. Lazonick. 2022. “Regulating Stock Buybacks: The $6.3 Trillion Question.” International Review of Applied Economics 1–25. https://doi.org/10.1080/02692171.2022.2123459.
   Web of Science ®Google Scholar
• Penrose, E. T. 1956. “Foreign Investment and the Growth of the Firm.” The Economic Journal 66 (262): 220–235. https://doi.org/10.2307/2227966.
   Web of Science ®Google Scholar
• Penrose, E. T. 1959. The Theory of the Growth of the Firm. Oxford: Oxford University Press.
   Google Scholar
• Penrose, E. T. 1968. The Large International Firm in Developing Countries. Westport, Connecticut: Greenwood Press.
   Google Scholar
• Pitelis, C. N. 2009. Introduction to The Theory of the Growth of the Firm. Oxford: Oxford University.
   Google Scholar
• Pitelis, C. N., and M. W. Wahl. 1998. “Edith Penrose: Pioneer of Stakeholder Theory.” Long Range Planning 31 (2): 252–261. https://doi.org/10.1016/S0024-6301(98)00009-0.
   Web of Science ®Google Scholar
• Priest, T. 2016. ”Petrobras in the History of Offshore Oil.” In New Order and Progress: Development and Democracy in Brazil, edited by Schneider B. R. 53–77, New York: Oxford Academic.
   Google Scholar
• Robinson, J. 1962. Economic Philosophy. Harmondsworth, Middlesex (UK): Penguin Books.
   Google Scholar
• Schumpeter, J. 1928. “The Instability of Capitalism.” The Economic Journal 38 (151): 361–386. https://doi.org/10.2307/2224315.
   Google Scholar
• Schumpeter, J. 1942. Capitalism, Socialism, and Democracy. New York: Harper.
   Google Scholar
• Semieniuk, G., P. B. Holden, J. F. Mercure, P. Salas, H. Pollitt, K. Jobson, P. Vercoulen, U. Chewpreecha, N. R. Edwards, and J. E. Viñuales. 2022. “Stranded Fossil-Fuel Assets Translate to Major Losses for Investors in Advanced Economies.” Nature Climate Change 12 (6): 532–538. (2022). https://doi.org/10.1038/s41558-022-01356-y.
   Web of Science ®Google Scholar
• Smith, C. J., P. M. Forster, M. Allen, J. Fuglestvedt, R. J. Millar, J. Rogelj, and K. Zickfeld. 2019. “Current Fossil Fuel Infrastructure Does Not Yet Commit Us to 1.5 °C Warming.” Nature Communications 10 (1): 101. (2019). https://doi.org/10.1038/s41467-018-07999-w.
   PubMedGoogle Scholar
• Stevens, P. 2005. “Oil Markets.” Oxford Review of Economic Policy 21 (1): 19–42. https://doi.org/10.1093/oxrep/gri002.
   Web of Science ®Google Scholar
• Sunny, N., A. Bernardi, D. Danaci, M. Bui, A. Gonzalez-Garay, and B. Chachuat. 2022. “A Pathway Towards Net-Zero Emissions in Oil Refineries.” Froniers in Chemical Engineering 4:804163. https://doi.org/10.3389/fceng.2022.804163.
   Google Scholar
• Thompson, S., and Wright, M. 2005. ”Edith Penrose's contribution to economics and strategy: an overview.” Managerial and Decision Economics 26 (2): 57–66. https://doi.org/10.1002/mde.1216.
   Google Scholar
• Tobin, D. 2019. “Technical Self-Sufficiency, Pricing Independence: A Penrosean Perspective on China’s Emergence as a Major Oil Refiner Since the 1960s.” Business History 61 (4): 681–702. https://doi.org/10.1080/00076791.2017.1413095.
   Web of Science ®Google Scholar
• Tordo, S. 2011 National Oil Companies and Value Creation, Volume I by Silvana Tordo with Brandon Tracy and Noora Arfaa. World Bank Working Paper Series 218, Washington.
   Google Scholar
• US (Energy Information Agency). (2021). U.S. Ethane Production to Grow, Along with Expanding Domestic Consumption and Exports 21st May 2021. www.eia.org.
   Google Scholar
• Van Eyden, R., M. Difeto, R. Gupta, and M. Wohar. 2019. “Oil Price Volatility and Economic Growth: Evidence from Advanced Economies Using More Than a Century’s Data.” Applied Energy 233–234:612–621. https://doi.org/10.1016/j.apenergy.2018.10.049.
   Web of Science ®Google Scholar
• Verbeek, T., and A. Mah. 2020. “Integration and Isolation in the Global Petrochemical Industry: A Multiscalar Corporate Network Analysis.” Economic Geography 96 (4): 363–387. https://doi.org/10.1080/00130095.2020.1794809.
   Web of Science ®Google Scholar
• Vernon, R. 1966. “International Investment and International Trade in the Product Cycle.” The Quarterly Journal of Economics 80 (2): 190–207. https://doi.org/10.2307/1880689.
   Web of Science ®Google Scholar
• Wright, C., and Nyberg, D. 2015. Climate Change, Capitalism, and Corporations: Processes of Creative Self-Destruction. Cambridge: Cambridge University Press. https://doi.org/10.1017/CBO9781139939676
   Google Scholar