Macroeconomic outcomes of OPEC and non-OPEC oil supply shocks in the euro area

Yifei Cai, Dongna Zhang, Tsangyao Chang and Chien-Chiang Lee ()

Energy Economics, 2022, vol. 109, issue C

Abstract: Exogenous OPEC and non-OPEC oil supply cuts, which are identified within an SVAR model with unplanned oil supply outage as an external instrument, decrease industrial production and raise unemployment rate in the euro area. However, the transmissions to consumer price are different when OPEC and non-OPEC oil supply cuts are respectively considered. Further analyses are implemented with datasets of different sectors and individual countries. The results are robust against different identification strategies and variations in empirical specifications. Finally, our findings signify policy implications for enhancing energy security in the European Union.

Keywords: OPEC and non-OPEC; Oil supply shocks; European macroeconomy; VAR; External instrument (search for similar items in EconPapers)
JEL-codes: C22 Q41 Q43 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (36)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:eneeco:v:109:y:2022:i:c:s0140988322001517

DOI: 10.1016/j.eneco.2022.105975

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