What matters for consumer sentiment in the euro area? World crude oil price or retail gasoline price?

Sofronis Clerides, Styliani-Iris Krokida, Neophytos Lambertides and Dimitris Tsouknidis

Energy Economics, 2022, vol. 105, issue C

Abstract: We investigate the link between crude oil prices, retail gasoline prices and consumer sentiment in the euro area. Our results reveal that consumer sentiment and its key components deteriorate notably as a response to positive shocks to real gasoline prices at the pump. On the contrary, positive oil-specific demand shocks do not trigger such a strong deterioration of consumer sentiment. The analysis is further refined to analyse the effects of these shocks to six key sub-components of consumer sentiment, which include household finance, conditions for buying durable products and the macroeconomy.

Keywords: Oil supply and demand shocks; Gasoline prices; Consumer sentiment; Euro area (search for similar items in EconPapers)
JEL-codes: G10 G11 G12 G14 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0140988321005880
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:105:y:2022:i:c:s0140988321005880

DOI: 10.1016/j.eneco.2021.105743

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 ().