Petroleum s Price Transmission and Imported Demand for Crude Oil in Thailand

Papusson Chaiwat and Nantarat Tangvitoontham
Additional contact information
Papusson Chaiwat: King Mongkut s University of Technology Thonburi, Thailand
Nantarat Tangvitoontham: Srinakharinwirot University, Thailand

International Journal of Energy Economics and Policy, 2014, vol. 4, issue 3, 476-483

Abstract: The study of the petroleum price structures in Thailand reveals that diesel is the important fuel because it influences inflation and productions costs. Government wants to keep diesel s price stability; meanwhile, it is less control in gasohol and petrol prices. These prices are normally higher than diesel s price in order to support the renewable energy and reduce the consumption behaviors. Real price elasticity of imported crude oil in short run is insignificant but in long run is about 0.0660 statistically significant. While, real income elasticity is about 0.4841 in short-run and increase to 0.9969 in long run. The price transmissions from crude oil to petroleum products demonstrate the inequality distribution with symmetry adjustments. Additionally, the adjustment to the long- run equilibrium of petrol price is slower than diesel price. Therefore, the efficiency energy policies should be in consideration to decrease the country's energy consumption in the future.

Keywords: price transmission; elasticity of crude oil demand (search for similar items in EconPapers)
JEL-codes: C32 Q41 Q48 (search for similar items in EconPapers)
Date: 2014
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://www.econjournals.com/index.php/ijeep/article/download/844/491 (application/pdf)
http://www.econjournals.com/index.php/ijeep/article/view/844/491 (text/html)

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:eco:journ2:2014-03-17

Access Statistics for this article

International Journal of Energy Economics and Policy is currently edited by Ilhan Ozturk

More articles in International Journal of Energy Economics and Policy from Econjournals
Bibliographic data for series maintained by Ilhan Ozturk ().