How Do International Trade Gains Affect Energy Prices? Evidence from the OECD Economies

Wenchao Pan, Hemachandra Padhan, Sujit Kumar Pruseth, Santosh Kumar Sahu, Umakant Dash and Giray Gözgör

Politická ekonomie, vol. preprint

Abstract: This paper examines the influence of international trade gains (measured by the International Trade Potential Index) on real energy prices using panel data from 28 OECD economies from 1995 to 2015. The empirical models also control the role of gross domestic product per capita and total population. The paper utilises the Dynamic Common Correlated Effects, Cross-sectionally Augmented Distributed Lag and the Augmented Mean Group estimations. The findings suggest that higher gains from international trade are associated with increased energy prices. The evidence is critical because policymakers should understand the trade-offs between promoting international trade and managing energy costs. Since trade boosts drive up energy prices, governments should implement measures to mitigate the impact on consumers and industries, such as energy efficiency programs or investments in alternative energy sources.

Keywords: energy prices; international trade gains; international trade potential index; OECD countries; CS-ARDL estimations; augmented mean group estimations (search for similar items in EconPapers)
References: Add references at CitEc
Citations:

Downloads: (external link)
http://polek.vse.cz/doi/10.18267/j.polek.1538.html (text/html)
free of charge

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:prg:jnlpol:v:preprint:id:1538

Ordering information: This journal article can be ordered from
Redakce Politické ekonomie, Vysoká škola ekonomická, nám. W. Churchilla 4, 130 67 Praha 3
http://polek.vse.cz

DOI: 10.18267/j.polek.1538

Access Statistics for this article

Politická ekonomie is currently edited by Jiřina Bulisová

More articles in Politická ekonomie from Prague University of Economics and Business Contact information at EDIRC.
Bibliographic data for series maintained by Stanislav Vojir ().