 Oil prices and the global economy: A general equilibrium analysisEnergy Economics, 2015, vol. 49, issue C, 669-675 Abstract: A global computable general equilibrium model is used to analyze the economic impacts of rising oil prices with endogenously determined availability of biofuels to mitigate those impacts. The negative effects on the global economy are comparable to those found in other studies, but the impacts are unevenly distributed across countries/regions or sectors. The agricultural sectors of high-income countries, which are relatively energy intensive, would suffer more from a rising oil prices than that in lower-income countries, whereas the reverse is true for the impacts across manufacturing sectors. The impacts are especially strong for oil importers with relatively energy-intensive manufacturing and trade, such as India and China. While the availability of biofuels does mitigate some of the negative impacts of rising oil prices, the benefit is small because capacity of biofuels to economically substitute for fossil fuels on a large scale remains limited. Keywords: Oil price; CGE model; Global economy; International trade (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:eneeco:v:49:y:2015:i:c:p:669-675 DOI: 10.1016/j.eneco.2015.03.005 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 |
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