Economics at your fingertips  

How Energy Prices Shape OECD Economic Growth: Panel Evidence from Multiple Decades

Hillard Huntington and Brantley Liddle ()

MPRA Paper from University Library of Munich, Germany

Abstract: New fears about escalating fuel prices and accumulating inflation are raising concerns about the possible dimming of near-term prospects for world economic growth. The role of energy prices in shaping economic growth relates not only to geopolitical risks or environmental taxes but also to a range of strategies that place moratoria on primary energy sources like nuclear, coal, petroleum, and natural gas. Applying a new data set for country-level energy prices since 1960, this study evaluates the effects of energy prices on economic growth in 18 OECD countries by controlling for other important macroeconomic conditions that shape economic activity. Mean-group estimates that control for cross-country correlations are used to emphasize average responses across nations. Averaged across all nations, results suggest that a 10 percent increase in energy prices dampened economic growth by about 0.15 percent. Moreover, some evidence exists that this response may be larger for more energy-intensive economies.

Keywords: OECD economic growth; energy prices; cross-country panel analysis (search for similar items in EconPapers)
JEL-codes: C23 O47 Q43 Q54 (search for similar items in EconPapers)
Date: 2022-04
New Economics Papers: this item is included in nep-ene, nep-gro and nep-mac
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link) original version (application/pdf)

Related works:
Journal Article: How energy prices shape OECD economic growth: Panel evidence from multiple decades (2022) Downloads
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:

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().

Page updated 2022-10-02
Handle: RePEc:pra:mprapa:113040