Testing For Oil Saving Technological Changes In
ARDL Models Of Demand For
Oil In G7 And BRICs
Author(s)
M. Asali
Abstract
In recent years, global growth of demand for oil has been mainly due to the
increasing demand for energy in major developing nations, namely China, India
and Brazil, fueled by their exceptional economic performance. On the other
hand, in OECD and particularly in the G7 countries, where more than 70% of
OECD demand for oil is consumed, demand for oil has been stagnant and seems
to have plateaued. In fact, per capita, consumption for oil in these countries has
been diminishing in recent years. Given the rising share of the major developing
economies in the global demand for oil it is important to have a clear idea about
their likely future paths of (per capita) demand for oil. A closely related issue is
whether energy and oil efficiency in these economies are price induced or could
be considered an exogenous process.
In this paper an attempt is made to employ time-series, auto regressive error
correction modeling technique to estimate short and long run income and price
elasticity’s of demand for oil in G7 and the BRICs, (Brazil, Russia, India and
China). We have also tested for oil saving technological changes in these
economies. This is done by making use of a price decomposition approach and
testing for existence of deterministic trend in the estimated demand for oil
models. The study yields a set of GDP and price elasticity’s of demand for oil in
G7 and the BRICs comparable to income and price elasticity’s of demand for oil
in other studies.
Keywords: demand for oil, GDP and price elasticity’s, technological changes.
Keywords
demand for oil, GDP and price elasticity’s, technological changes.
Related Book
Other papers in this volume
Warning (2)
: foreach() argument must be of type array|object, null given [in
/var/www/dce7ae55-385b-4ffa-8595-3ec5e61ff110/public_html/app/templates/Papers/view.php, line
364]
Code
$counter = '0';
foreach ($paper['book']['Paper'] as $otherPaper) {
if ((!empty($otherPaper['name'])) && ($counter < '7') && ($otherPaper['available'] == 1)) {
Cake\Error\ErrorTrap->handleError() /var/www/dce7ae55-385b-4ffa-8595-3ec5e61ff110/public_html/app/templates/Papers/view.php, line 364
/var/www/dce7ae55-385b-4ffa-8595-3ec5e61ff110/public_html/app/vendor/cakephp/cakephp/src/View/View.php /var/www/dce7ae55-385b-4ffa-8595-3ec5e61ff110/public_html/app/vendor/cakephp/cakephp/src/View/View.php, line 1188
Cake\View\View->_evaluate() /var/www/dce7ae55-385b-4ffa-8595-3ec5e61ff110/public_html/app/vendor/cakephp/cakephp/src/View/View.php, line 1145
Cake\View\View->_render() /var/www/dce7ae55-385b-4ffa-8595-3ec5e61ff110/public_html/app/vendor/cakephp/cakephp/src/View/View.php, line 785
Cake\View\View->render() /var/www/dce7ae55-385b-4ffa-8595-3ec5e61ff110/public_html/app/vendor/cakephp/cakephp/src/Controller/Controller.php, line 712
Cake\Controller\Controller->render() /var/www/dce7ae55-385b-4ffa-8595-3ec5e61ff110/public_html/app/vendor/cakephp/cakephp/src/Controller/Controller.php, line 516
Cake\Controller\Controller->invokeAction() /var/www/dce7ae55-385b-4ffa-8595-3ec5e61ff110/public_html/app/vendor/cakephp/cakephp/src/Controller/ControllerFactory.php, line 166
Cake\Controller\ControllerFactory->handle() /var/www/dce7ae55-385b-4ffa-8595-3ec5e61ff110/public_html/app/vendor/cakephp/cakephp/src/Controller/ControllerFactory.php, line 141
Cake\Controller\ControllerFactory->invoke() /var/www/dce7ae55-385b-4ffa-8595-3ec5e61ff110/public_html/app/vendor/cakephp/cakephp/src/Http/BaseApplication.php, line 362
Cake\Http\BaseApplication->handle() /var/www/dce7ae55-385b-4ffa-8595-3ec5e61ff110/public_html/app/vendor/cakephp/cakephp/src/Http/Runner.php, line 86
Cake\Http\Runner->handle() /var/www/dce7ae55-385b-4ffa-8595-3ec5e61ff110/public_html/app/vendor/cakephp/cakephp/src/Http/Middleware/CsrfProtectionMiddleware.php, line 159
Cake\Http\Middleware\CsrfProtectionMiddleware->process() /var/www/dce7ae55-385b-4ffa-8595-3ec5e61ff110/public_html/app/vendor/cakephp/cakephp/src/Http/Runner.php, line 82
Cake\Http\Runner->handle() /var/www/dce7ae55-385b-4ffa-8595-3ec5e61ff110/public_html/app/vendor/cakephp/cakephp/src/Http/Middleware/BodyParserMiddleware.php, line 157
Cake\Http\Middleware\BodyParserMiddleware->process() /var/www/dce7ae55-385b-4ffa-8595-3ec5e61ff110/public_html/app/vendor/cakephp/cakephp/src/Http/Runner.php, line 82
Cake\Http\Runner->handle() /var/www/dce7ae55-385b-4ffa-8595-3ec5e61ff110/public_html/app/vendor/cakephp/cakephp/src/Routing/Middleware/RoutingMiddleware.php, line 118
Cake\Routing\Middleware\RoutingMiddleware->process() /var/www/dce7ae55-385b-4ffa-8595-3ec5e61ff110/public_html/app/vendor/cakephp/cakephp/src/Http/Runner.php, line 82
Cake\Http\Runner->handle() /var/www/dce7ae55-385b-4ffa-8595-3ec5e61ff110/public_html/app/vendor/cakephp/cakephp/src/Routing/Middleware/AssetMiddleware.php, line 69
Cake\Routing\Middleware\AssetMiddleware->process() /var/www/dce7ae55-385b-4ffa-8595-3ec5e61ff110/public_html/app/vendor/cakephp/cakephp/src/Http/Runner.php, line 82
Cake\Http\Runner->handle() /var/www/dce7ae55-385b-4ffa-8595-3ec5e61ff110/public_html/app/vendor/cakephp/cakephp/src/Error/Middleware/ErrorHandlerMiddleware.php, line 115
Cake\Error\Middleware\ErrorHandlerMiddleware->process() /var/www/dce7ae55-385b-4ffa-8595-3ec5e61ff110/public_html/app/vendor/cakephp/cakephp/src/Http/Runner.php, line 82
Cake\Http\Runner->handle() /var/www/dce7ae55-385b-4ffa-8595-3ec5e61ff110/public_html/app/vendor/cakephp/debug_kit/src/Middleware/DebugKitMiddleware.php, line 60
DebugKit\Middleware\DebugKitMiddleware->process() /var/www/dce7ae55-385b-4ffa-8595-3ec5e61ff110/public_html/app/vendor/cakephp/cakephp/src/Http/Runner.php, line 82
Cake\Http\Runner->handle() /var/www/dce7ae55-385b-4ffa-8595-3ec5e61ff110/public_html/app/vendor/cakephp/cakephp/src/Http/Runner.php, line 60
Cake\Http\Runner->run() /var/www/dce7ae55-385b-4ffa-8595-3ec5e61ff110/public_html/app/vendor/cakephp/cakephp/src/Http/Server.php, line 104
Cake\Http\Server->run() /var/www/dce7ae55-385b-4ffa-8595-3ec5e61ff110/public_html/app/webroot/index.php, line 37
[main]
