Does oil price uncertainty affect energy use?

Gerard Kuper and Daan van Soest

No 200306, CCSO Working Papers from University of Groningen, CCSO Centre for Economic Research

Abstract: Theory predicts that the presence of fixed costs affects the relationship between energy use and energy price changes, as the firm's output and investment decisions respond differently to energy price increases and decreases. The asymmetry in response to energy price changes is exacerbated by uncertainty with respect to future energy prices, but to date the empirical literature does not explicitly take uncertainty into account. The contribution of this paper is twofold. First, we develop a new measure of energy price uncertainty. Second, we apply the measure to explain energy use in 8 OECD countries between 1978 and 1996, trying to identify whether indeed energy price uncertainty effects the asymmetry resulting from changes in energy use.

Date: 2003
References: Add references at CitEc
Citations:

Downloads: (external link)
http://irs.ub.rug.nl/ppn/249569434 (application/pdf)
Our link check indicates that this URL is bad, the error code is: 403 Forbidden (http://irs.ub.rug.nl/ppn/249569434 [302 Found]--> https://irs.ub.rug.nl/ppn/249569434 [302 Found]--> https://www.rug.nl/research/portal/publications/pub(32621900-3443-43fb-9543-061228bde188).html [301 Moved Permanently]--> https://research.rug.nl/en/publications/pub(32621900-3443-43fb-9543-061228bde188).html)

Related works:
Journal Article: Does Oil Price Uncertainty Affect Energy Use? (2006)
Journal Article: Does Oil Price Uncertainty Affect Energy Use? (2006)
Working Paper: Does oil price uncertainty affect energy use? (2006)
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:gro:rugccs:200306

Access Statistics for this paper

More papers in CCSO Working Papers from University of Groningen, CCSO Centre for Economic Research Contact information at EDIRC.
Bibliographic data for series maintained by Hanneke Tamling ().