File Download
  Links for fulltext
     (May Require Subscription)
Supplementary

Article: Effects of International Crude Oil Prices on Energy Consumption in China

TitleEffects of International Crude Oil Prices on Energy Consumption in China
Authors
Keywordscointegration
error-correction model
hydropower consumption
international crude oil price
long-run elasticity
Issue Date2020
PublisherMDPI AG. The Journal's web site is located at http://www.mdpi.com/journal/Energies
Citation
Energies, 2020, v. 13 n. 15, p. article no. 3891 How to Cite?
AbstractThis study aims to test the effects of changes in international crude oil prices on changes in crude oil and hydropower use from 1965 to 2016. We suggest a cointegration relationship between the consumption of coal, crude oil, and hydropower and the real crude oil price. The real price is weakly exogenous for the long-run relationship and has impacted energy consumption accordingly. The long-run crude oil price elasticity of oil use is 0.460. Our estimate suggests a positive oil price–oil use relationship in China, which is dramatically different from many previous studies but is consistent with a few past studies. The growth in external oil prices may lead to a long-run increase in hydropower use in China, with a long-run price elasticity of 0.242. The long-run crude oil price elasticity of coal use is −0.930. Hence, increased oil and hydropower use could make up the energy supply–demand gap left over by the decreased coal use. Strictly planned domestic fuel prices and rapidly growing family incomes should diminish the negative effect of external oil prices on domestic crude oil demand. In the long run, given a strictly managed energy price, the growth in external oil prices is not likely to noticeably restrain the domestic oil demand or lead to a dramatic increase in coal use. We suggest that the large-scale development and utilization of hydropower may be inappropriate. Coal utilization policies must be reviewed. The appropriate increase in clean coal consumption could reduce the consumption of crude oil and hydropower; meanwhile, carbon emissions will not increase.
Persistent Identifierhttp://hdl.handle.net/10722/293431
ISSN
2018 Impact Factor: 2.707
2015 SCImago Journal Rankings: 0.840
ISI Accession Number ID

 

DC FieldValueLanguage
dc.contributor.authorZou, G-
dc.contributor.authorChau, KW-
dc.date.accessioned2020-11-23T08:16:40Z-
dc.date.available2020-11-23T08:16:40Z-
dc.date.issued2020-
dc.identifier.citationEnergies, 2020, v. 13 n. 15, p. article no. 3891-
dc.identifier.issn1996-1073-
dc.identifier.urihttp://hdl.handle.net/10722/293431-
dc.description.abstractThis study aims to test the effects of changes in international crude oil prices on changes in crude oil and hydropower use from 1965 to 2016. We suggest a cointegration relationship between the consumption of coal, crude oil, and hydropower and the real crude oil price. The real price is weakly exogenous for the long-run relationship and has impacted energy consumption accordingly. The long-run crude oil price elasticity of oil use is 0.460. Our estimate suggests a positive oil price–oil use relationship in China, which is dramatically different from many previous studies but is consistent with a few past studies. The growth in external oil prices may lead to a long-run increase in hydropower use in China, with a long-run price elasticity of 0.242. The long-run crude oil price elasticity of coal use is −0.930. Hence, increased oil and hydropower use could make up the energy supply–demand gap left over by the decreased coal use. Strictly planned domestic fuel prices and rapidly growing family incomes should diminish the negative effect of external oil prices on domestic crude oil demand. In the long run, given a strictly managed energy price, the growth in external oil prices is not likely to noticeably restrain the domestic oil demand or lead to a dramatic increase in coal use. We suggest that the large-scale development and utilization of hydropower may be inappropriate. Coal utilization policies must be reviewed. The appropriate increase in clean coal consumption could reduce the consumption of crude oil and hydropower; meanwhile, carbon emissions will not increase.-
dc.languageeng-
dc.publisherMDPI AG. The Journal's web site is located at http://www.mdpi.com/journal/Energies-
dc.relation.ispartofEnergies-
dc.rightsThis work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.-
dc.subjectcointegration-
dc.subjecterror-correction model-
dc.subjecthydropower consumption-
dc.subjectinternational crude oil price-
dc.subjectlong-run elasticity-
dc.titleEffects of International Crude Oil Prices on Energy Consumption in China-
dc.typeArticle-
dc.identifier.emailChau, KW: hrrbckw@hku.hk-
dc.identifier.authorityChau, KW=rp00993-
dc.description.naturepublished_or_final_version-
dc.identifier.doi10.3390/en13153891-
dc.identifier.scopuseid_2-s2.0-85090744104-
dc.identifier.hkuros319863-
dc.identifier.volume13-
dc.identifier.issue15-
dc.identifier.spagearticle no. 3891-
dc.identifier.epagearticle no. 3891-
dc.identifier.isiWOS:000567285900001-
dc.publisher.placeSwitzerland-
dc.identifier.issnl1996-1073-

Export via OAI-PMH Interface in XML Formats


OR


Export to Other Non-XML Formats