Oil price crisis response: Capability assessment and key indicator identification

Keyi Ju, Bin Su, Dequn Zhou, P. Zhou and Yuqiang Zhang
Authors registered in the RePEc Author Service: Peng Zhou

Energy, 2015, vol. 93, issue P2, 1353-1360

Abstract: China has become the second largest oil consumer and oil importer since 2008. In the context of sustained highly frequent fluctuating oil price, China's oil price crisis response system has been seriously threatened. Twelve indicators of four domains called economic stability, political stability, oil import dependence, as well as oil consumption dependence are used to construct “OPCVI (Oil Price Crisis Vulnerability Index)” system, to estimate China's response capability of oil price crisis. MDEA (Multiplicative Data Envelopment Analysis) is used to identify the weights of each indicator and appraise the OPCVI values between 1993 and 2013. Results show that, oil consumption intensity, GDP(Gross Domestic Product) per capita and the ratio of oil import expenditure to GDP are the three key indicators for China's oil price crisis response capability. China's OPCVI became weak since 2000. This is mainly because that the contribution of positive indicators to OPCVI gradually reduced while the contributions of negative indicators increased. Additionally, the contributions of the key indicators of OPCVI are so concentrated and lack of flexibility that it can easily make China's oil price crisis response capability fall into a dangerous situation. Finally, policy recommendations for enhancing the oil price crisis response capability of China are given.

Keywords: Oil price crisis; Response capability; Multi-criteria decision analysis; Composite indicator (search for similar items in EconPapers)
Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S036054421501347X
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:energy:v:93:y:2015:i:p2:p:1353-1360

DOI: 10.1016/j.energy.2015.09.124

Access Statistics for this article

Energy is currently edited by Henrik Lund and Mark J. Kaiser

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