Automobile manufacturers, electric vehicles and the price of oil

Dirk G. Baur and Neda Todorova

Energy Economics, 2018, vol. 74, issue C, 252-262

Abstract: This paper analyzes the oil price sensitivity of the world's largest automobile manufacturers. After controlling for systematic effects we identify a negative oil price sensitivity consistent with a fuel-cost demand effect. This effect has strengthened recently potentially due to the increased popularity of SUVs and despite efforts of major producers to start or increase the production of hybrid and electric vehicles. Tesla is the only company that displays a positive oil price sensitivity consistent with a substitution effect between combustion-engine cars and electric cars.

Keywords: Automobile companies; Oil prices; Electric vehicles; Financialization (search for similar items in EconPapers)
JEL-codes: G12 G15 L6 Q02 (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (22)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:eneeco:v:74:y:2018:i:c:p:252-262

DOI: 10.1016/j.eneco.2018.05.034

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