The Impact of the Crude Oil Price Volatility on the New Energy Vehicle and Transportation Industry

Luning Shan

Chapter 23 in Economic Management and Big Data Application:Proceedings of the 3rd International Conference, 2024, pp 260-272 from World Scientific Publishing Co. Pte. Ltd.

Abstract: Global crude oil prices had risen sharply since February 2022, when news broke that Russian soldiers had invaded Ukraine. Many other industries have been affected, including green energy vehicles and transportation. This paper uses XPENG Automobile and the air transportation industry as examples, selecting stock data from June of last year and modeling and analyzing the data using the ARMA-GARCH method. Key findings from this research show that the rise in crude oil prices will inevitably increase the cost of using cars for consumers; hence, the rise in oil prices will indeed increase the sales of Xpeng Motors. Automobile manufacturing involves various sub-sectors of the manufacturing industry, and rising oil prices will increase production costs in these industries. When the price of oil rises, the cost of other items that are derived from oil, such as raw materials, plastics, and every kind of molded good, also increase. The rise in the cost of energy leads to an increase in the cost of manufacturing, and an increase in the cost of oil leads to a rise in the cost of transportation. Consumers will now have less money available for spending resulting in a decline in the economy of the sector. Putting more money into oil and gas companies would not be advisable due to the unstable supply.

Keywords: Big Data; Information Management; Economic; Data Applications; Blockchain; E-commerce (search for similar items in EconPapers)
JEL-codes: C63 C8 O14 (search for similar items in EconPapers)
Date: 2024
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.worldscientific.com/doi/pdf/10.1142/9789811270277_0023 (application/pdf)
https://www.worldscientific.com/doi/abs/10.1142/9789811270277_0023 (text/html)
Ebook Access is available upon purchase.

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:wsi:wschap:9789811270277_0023

Ordering information: This item can be ordered from

Access Statistics for this chapter

More chapters in World Scientific Book Chapters from World Scientific Publishing Co. Pte. Ltd.
Bibliographic data for series maintained by Tai Tone Lim ().