The impact of refinery and oil demand shocks on the motor fuel market in Sweden

Amin Karimu, Samuel Salia and Javed J. Hussain

International Journal of Finance & Economics, 2021, vol. 26, issue 4, 4862-4878

Abstract: This paper examines the link between the oil market and the motor fuel market in Sweden by developing a joint oil and motor fuel market in a structural VAR model. We explore the dynamic relationship between the oil market and motor fuel market (both gasoline and diesel) by focusing on the effects of oil demand and refinery shocks on motor fuel price and consumption. The results reveal opposite responses of gasoline and diesel consumption to positive oil demand shocks. Moreover, motor fuel price response to both oil demand and refinery shocks is greater than that of motor fuel consumption. We also assess the immediate and long‐run contributions of each of the shocks to the total variation of motor fuel price and consumption in the Swedish motor fuel market.

Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://doi.org/10.1002/ijfe.1995

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:wly:ijfiec:v:26:y:2021:i:4:p:4862-4878

Ordering information: This journal article can be ordered from
http://jws-edcv.wile ... PRINT_ISSN=1076-9307

Access Statistics for this article

International Journal of Finance & Economics is currently edited by Mark P. Taylor, Keith Cuthbertson and Michael P. Dooley

More articles in International Journal of Finance & Economics from John Wiley & Sons, Ltd.
Bibliographic data for series maintained by Wiley Content Delivery ().