Download or read book Price Income and Cross elasticity of Crude Oil Demand written by Nikhil Kaushik and published by . This book was released on 2020 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: The paper attempts to establish short-run as well as long-run relationship among crude oil consumption, international crude oil prices, GDP, domestic crude oil production, coal production and exchange rate in India. The study employs vector error correction model over the time span from 2001 to 2017. To inspect changes caused due to endogenous variables in the system, impulse response function and variance decomposition are applied.The results show that both short-run and long-run price and income elasticities are inelastic. Only GDP and oil production have significant effect on the crude oil demand in short-run indicating that increase in economic growth and domestic production leads to rise in crude oil demand irrespective of price, coal production and exchange rate. However, in the long-run, crude oil demand is significantly influenced by all the variables (inelastic). GDP and exchange rate influence crude oil demand in India more than any other variable considered in the study as growth in economy leads to higher demand for crude oil and favourable exchange rate fluctuations positively influences oil imports consequentially, oil demand.The outcome of the study concludes that India must take measures to combat oil price shocks. India has a strong renewable energy potential in terms of solar and wind energy which can contribute to India's energy security and reduce crude oil import demand in India. Moreover, India must improve strategic oil reserves as it can hold 90 days' oil reserves as instructed by the International Energy Agency but currently it has only oil reserves of 13 days.
Download or read book Oil and the World Economy written by Mr.Michael Kumhof and published by International Monetary Fund. This book was released on 2012-10-25 with total page 31 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper, using a six-region DSGE model of the world economy, assesses the GDP and current account implications of permanent oil supply shocks hitting the world economy at an unspecified future date. For modest-sized shocks and conventional production technologies the effects are modest. But for larger shocks, for elasticities of substitution that decline as oil usage is reduced to a minimum, and for production functions in which oil acts as a critical enabler of technologies, GDP growth could drop significantly. Also, oil prices could become so high that smooth adjustment, as assumed in the model, may become very difficult.
Download or read book The Supply of Natural Resources written by Robert M. Spann and published by Ayer Publishing. This book was released on 1979-01-01 with total page 129 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book The Response of World Energy and Oil Demand to Income Growth and Changes in Oil Prices written by Joyce Dargay and published by . This book was released on 1994 with total page 48 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Price Elasticities of Demand for Motor Gasoline and Other Petroleum Products written by Terry H. Morlan and published by . This book was released on 1981 with total page 72 pages. Available in PDF, EPUB and Kindle. Book excerpt: Research results for short-term and long-term petroleum elasticities are summarized, and existing Energy Information Administration (EIA) models of energy demand are used to develop estimates of price response for 1-, 3-, 5-, and 10-year intervals. In the short-run, elasticities reported for most petroleum products in most end-uses generally range from -.1 to -.4 although the numerous research estimates for gasoline demand elasticity are clustered in the more elastic range of -.1 to -.3. EIA models used in this analysis fall within these ranges and tend toward the higher (in absolute terms) end of the elasticity range. In transportation uses, for which most of the research has centered on gasoline, petroleum demand has been shown to be less responsive to price than the other sectors, with long-term gasoline estimates generally falling in the range of -.3 to -.9. In investigating the price sensitivity for periods up to 10 years using the EIA Demand Analysis System, petroleum product elasticities in all sectors are typically between -.4 and -.1. For automobile gasoline demand, the greatest proportion of the 10-year price response is manifested in increased cutbacks in travel. The model studies show that, given continued increases in the price of oil, the proportion of consumer budgets as well as industrial production costs allocated for petroleum products will increase; that petroleum prices will be volatile in instances of temporary oil shortages; and that market forces can achieve long-term conservation of petroleum, but at the cost of greater proportional increases in oil prices.
Download or read book An Oil and Gas Model written by Noureddine Krichene and published by International Monetary Fund. This book was released on 2007-06 with total page 36 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper formulated a short-run model, with an explicit role for monetary policy, for analyzing world oil and gas markets. The model described carefully the parameters of these markets and their vulnerability to business cycles. Estimates showed that short-run demand for oil and gas was price- inelastic, relatively income-elastic, and was influenced by interest and exchange rates; short-run supply was price-inelastic. Short-run price inelasticity could be a source for high volatility in oil and gas prices, and could confer to producers a temporary market power. Being simultaneous and incorporating interest and exchange rates, the model could be useful in short-term forecasting of oil and gas outputs and prices under policy scenarios.
Download or read book Crude Oil Prices as Determined by OPEC and Market Fundamentals written by Paul W. MacAvoy and published by . This book was released on 1982 with total page 234 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book A Specification Analysis of the Demand for Crude Oil written by Albert L. Danielsen and published by . This book was released on 1977 with total page 58 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book A Simultaneous Equations Model for World Crude Oil and Natural Gas Markets written by Noureddine Krichene and published by . This book was released on 2005 with total page 30 pages. Available in PDF, EPUB and Kindle. Book excerpt: A model for world crude oil and natural gas markets is estimated. It confirms low price and high income elasticities of demand for both crude oil and natural gas, which explains the market power of oil producers and price volatility following shocks. The paper establishes a relationship between oil prices, changes in the nominal effective exchange rate (NEER) of the U.S. dollar, and the U.S. interest rates, thereby identifying demand shocks arising from monetary policy. Both interest rates and the NEER are shown to influence crude prices inversely. The results imply that crude oil prices should be included in the policy rule equation of an inflation targeting model.
Download or read book Elasticity of Demand for Crude Oil written by Isam K. Kabbani and published by . This book was released on 1964 with total page 36 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Oil Prices and the Global Economy written by Mr.Rabah Arezki and published by International Monetary Fund. This book was released on 2017-01-27 with total page 30 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper presents a simple macroeconomic model of the oil market. The model incorporates features of oil supply such as depletion, endogenous oil exploration and extraction, as well as features of oil demand such as the secular increase in demand from emerging-market economies, usage efficiency, and endogenous demand responses. The model provides, inter alia, a useful analytical framework to explore the effects of: a change in world GDP growth; a change in the efficiency of oil usage; and a change in the supply of oil. Notwithstanding that shale oil production today is more responsive to prices than conventional oil, our analysis suggests that an era of prolonged low oil prices is likely to be followed by a period where oil prices overshoot their long-term upward trend.
Download or read book The Distributional Implications of the Impact of Fuel Price Increases on Inflation written by Mr. Kangni R Kpodar and published by International Monetary Fund. This book was released on 2021-11-12 with total page 34 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper investigates the response of consumer price inflation to changes in domestic fuel prices, looking at the different categories of the overall consumer price index (CPI). We then combine household survey data with the CPI components to construct a CPI index for the poorest and richest income quintiles with the view to assess the distributional impact of the pass-through. To undertake this analysis, the paper provides an update to the Global Monthly Retail Fuel Price Database, expanding the product coverage to premium and regular fuels, the time dimension to December 2020, and the sample to 190 countries. Three key findings stand out. First, the response of inflation to gasoline price shocks is smaller, but more persistent and broad-based in developing economies than in advanced economies. Second, we show that past studies using crude oil prices instead of retail fuel prices to estimate the pass-through to inflation significantly underestimate it. Third, while the purchasing power of all households declines as fuel prices increase, the distributional impact is progressive. But the progressivity phases out within 6 months after the shock in advanced economies, whereas it persists beyond a year in developing countries.
Download or read book World Crude Oil Markets written by Noureddine Krichene and published by . This book was released on 2014 with total page 27 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper examines the relationship between monetary policy and oil prices within a world oil demand and supply model. Low price and high income elasticities of demand and rigid supply explain high price volatilities and producers' market power. Exchange and interest rates do influence oil market equilibrium. The relationship between oil prices and interest rates is a two-way relationship that depends on the type of oil shock. During a supply shock, rising oil prices caused interest rates to increase; whereas during a demand shock, falling interest rates caused oil prices to rise. Record low interest rates led to high oil price volatility in 2005. Data shows that world economic growth and price stability require stable oil markets and therefore more prudent monetary policies.
Download or read book Energy Modeling written by Milton F. Searl and published by Routledge. This book was released on 2016-03-22 with total page 449 pages. Available in PDF, EPUB and Kindle. Book excerpt: In 1973, a seminar was held by Resources for the Future to bring together the new and growing community of scholars researching into the general field of energy modelling. Originally published in the same year, this report gathers together all of the papers presented at that seminar in order to further spread the results of these studies with those who were unable to attend. The papers cover a full range of techniques used for energy modelling whilst commenting on current government and industry models. This title will be of interest to students of Environmental Studies.
Download or read book Demand Elasticities in Antitrust Analysis written by Gregory Werden and published by . This book was released on 1996 with total page 66 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Taxation of Petroleum Products written by Mrs.Poonam Gupta and published by International Monetary Fund. This book was released on 1994-03-01 with total page 58 pages. Available in PDF, EPUB and Kindle. Book excerpt: The domestic taxation of petroleum products is an important source of revenue in most countries. However, there is a wide variation of tax rates on petroleum products across countries, which cannot be explained by economic theory alone. This paper surveys different considerations advanced for taxing petroleum and presents petroleum tax rate data in 120 countries. It concludes that a significant reduction in the present extremely wide variation in petroleum prices and tax rates appears warranted.
Download or read book Commodity Prices and Markets written by Takatoshi Ito and published by University of Chicago Press. This book was released on 2011-03 with total page 346 pages. Available in PDF, EPUB and Kindle. Book excerpt: Fluctuations of commodity prices, most notably of oil, capture considerable attention and have been tied to important economic effects. This book advances our understanding of the consequences of these fluctuations, providing both general analysis and a particular focus on the countries of the Pacific Rim.
