EconPapers    
Economics at your fingertips  
 

Heterogeneous noncompliance with OPEC's oil production cuts

Dror Parnes

Energy Economics, 2019, vol. 78, issue C, 289-300

Abstract: In this study we explore the heterogeneous noncompliance behavior among ten member nations of the Organization of the Petroleum Countries (OPEC). Overall we find that the three top-oil-producers (Saudi Arabia, Iran, and Venezuela) and the four relatively low-oil-producers (Libya, Indonesia, Algeria, and Qatar) exhibit higher cheating frequencies and magnitudes, while they tend to offset their peers' conduct. Conversely, the three mid-oil-producers (UAE, Nigeria, and Kuwait) display much lower frequencies and magnitudes of noncompliance with OPEC's administered quotas, while they largely demonstrate herding behavior among their peers. The volatilities of the respective cheating magnitudes are rather similar across the three clusters though. This study contributes to the economic literature by further illuminating the operational mode of OPEC, and by exposing its three main subsets, its interdependent structure, and its members' customary behavioral patterns.

Keywords: OPEC; Oil production cuts; Heterogeneous noncompliance; Interdependency (search for similar items in EconPapers)
JEL-codes: E23 F53 P28 Q43 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0140988318304638
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:78:y:2019:i:c:p:289-300

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 Dana Niculescu ().

 
Page updated 2019-05-11
Handle: RePEc:eee:eneeco:v:78:y:2019:i:c:p:289-300