World oil price impacts on country-specific fuel markets: Evidence of a muted global rebound effect

Dallas Wood, Justin Larson, Jason Jones, Diana Galperin, Michael Shelby and Manuel Gonzalez

Energy Economics, 2022, vol. 111, issue C

Abstract: Given the interconnectedness of global oil markets, significant changes in oil consumption in one country could have a spillover impact on international oil consumption. This concept, often referred to as the global rebound effect, estimates how changes in fuel consumption in an individual country influences world fuel prices and subsequent changes on world fuel consumption. Using monthly retail fuel price and consumption data, we build structural vector autoregressive (SVAR) models for 63 countries, which together represent nearly 70% of global refined oil consumption to examine the issue of the global rebound effect. We break out price and consumption elasticities by fuel type (i.e., gasoline versus diesel) and by fuel price policy groupings (i.e., liberalized/ad-hoc), as well as provide individual country and full sample price and consumption elasticities. We find muted impacts of changes in world crude oil prices on global oil consumption. These results suggest that in the short-run country-specific policies that influence oil consumption may not have significant global rebound effects.

Keywords: Global rebound; International spillover effect; Retail fuel prices; Price pass-through; Structural vector auto-regression model (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0140988322001931
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:eneeco:v:111:y:2022:i:c:s0140988322001931

DOI: 10.1016/j.eneco.2022.106024

Access Statistics for this article

Energy Economics is currently edited by R. S. J. Tol, Beng Ang, Lance Bachmeier, Perry Sadorsky, Ugur Soytas and J. P. Weyant

More articles in Energy Economics from Elsevier
Bibliographic data for series maintained by Catherine Liu ().