Studying Short-Term and Long-Term Effects of OPEC Oil Basket Prices and Natural Gas on Liquefied Petroleum Gas (LPG) Traded on Energy Exchange of Iran
In this paper, we examine the short-term and long-term effects of OPEC oil basket prices and natural gas on liquefied petroleum gas (LPG) traded on Energy Exchange of Iran. tests of convergence (integration) and causality of variables have been used for 2-year period, from May 22, 2014 to July 21, 2...
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| Format: | Article |
| Language: | English |
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Mashhad: Behzad Hassannezhad Kashani
2017-04-01
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| Series: | International Journal of Management, Accounting and Economics |
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| Online Access: | https://www.ijmae.com/article_114994_349af97e61e3e0ca4a9f3a0224529a6b.pdf |
| _version_ | 1797690356039417856 |
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| author | Zahra Shiri Hamid Taghizadeh Ramiar Refaei |
| author_facet | Zahra Shiri Hamid Taghizadeh Ramiar Refaei |
| author_sort | Zahra Shiri |
| collection | DOAJ |
| description | In this paper, we examine the short-term and long-term effects of OPEC oil basket prices and natural gas on liquefied petroleum gas (LPG) traded on Energy Exchange of Iran. tests of convergence (integration) and causality of variables have been used for 2-year period, from May 22, 2014 to July 21, 2016. The results of the study based on long-term relationship show that an increase of 1 percent in the logarithm of OPEC oil basket prices decreases 17.24 percent of the logarithm of the price of LPG. The direction of causality is from OPEC oil basket prices to LPG. Moreover, 1% increase in natural gas prices logarithm will increase 26.52 percent of the logarithm of the price of LPG. The direction of causality is from natural gas to LPG. Estimating the relationship between short-term error corrections for the logarithm of the price of LPG also confirms no statistically significant error correction component. |
| first_indexed | 2024-03-12T01:58:30Z |
| format | Article |
| id | doaj.art-9a9764daa0834324a8751a928d03a08d |
| institution | Directory Open Access Journal |
| issn | 2383-2126 |
| language | English |
| last_indexed | 2024-03-12T01:58:30Z |
| publishDate | 2017-04-01 |
| publisher | Mashhad: Behzad Hassannezhad Kashani |
| record_format | Article |
| series | International Journal of Management, Accounting and Economics |
| spelling | doaj.art-9a9764daa0834324a8751a928d03a08d2023-09-07T21:53:29ZengMashhad: Behzad Hassannezhad KashaniInternational Journal of Management, Accounting and Economics2383-21262017-04-0144328347114994Studying Short-Term and Long-Term Effects of OPEC Oil Basket Prices and Natural Gas on Liquefied Petroleum Gas (LPG) Traded on Energy Exchange of IranZahra Shiri0Hamid Taghizadeh1Ramiar Refaei2MSc in IT Management, University of Allameh Tabataba'I, Tehran, IranPh.D Student in Economics, Islamic Azad University, Isfahan (Khorasgan) Branch, IranPh.D Student in Economics, Islamic Azad University, Isfahan (Khorasgan) Branch, IranIn this paper, we examine the short-term and long-term effects of OPEC oil basket prices and natural gas on liquefied petroleum gas (LPG) traded on Energy Exchange of Iran. tests of convergence (integration) and causality of variables have been used for 2-year period, from May 22, 2014 to July 21, 2016. The results of the study based on long-term relationship show that an increase of 1 percent in the logarithm of OPEC oil basket prices decreases 17.24 percent of the logarithm of the price of LPG. The direction of causality is from OPEC oil basket prices to LPG. Moreover, 1% increase in natural gas prices logarithm will increase 26.52 percent of the logarithm of the price of LPG. The direction of causality is from natural gas to LPG. Estimating the relationship between short-term error corrections for the logarithm of the price of LPG also confirms no statistically significant error correction component.https://www.ijmae.com/article_114994_349af97e61e3e0ca4a9f3a0224529a6b.pdfk lpg pricenatural gas priceopec oil basket pricetests of convergence (integration)var |
| spellingShingle | Zahra Shiri Hamid Taghizadeh Ramiar Refaei Studying Short-Term and Long-Term Effects of OPEC Oil Basket Prices and Natural Gas on Liquefied Petroleum Gas (LPG) Traded on Energy Exchange of Iran International Journal of Management, Accounting and Economics k lpg price natural gas price opec oil basket price tests of convergence (integration) var |
| title | Studying Short-Term and Long-Term Effects of OPEC Oil Basket Prices and Natural Gas on Liquefied Petroleum Gas (LPG) Traded on Energy Exchange of Iran |
| title_full | Studying Short-Term and Long-Term Effects of OPEC Oil Basket Prices and Natural Gas on Liquefied Petroleum Gas (LPG) Traded on Energy Exchange of Iran |
| title_fullStr | Studying Short-Term and Long-Term Effects of OPEC Oil Basket Prices and Natural Gas on Liquefied Petroleum Gas (LPG) Traded on Energy Exchange of Iran |
| title_full_unstemmed | Studying Short-Term and Long-Term Effects of OPEC Oil Basket Prices and Natural Gas on Liquefied Petroleum Gas (LPG) Traded on Energy Exchange of Iran |
| title_short | Studying Short-Term and Long-Term Effects of OPEC Oil Basket Prices and Natural Gas on Liquefied Petroleum Gas (LPG) Traded on Energy Exchange of Iran |
| title_sort | studying short term and long term effects of opec oil basket prices and natural gas on liquefied petroleum gas lpg traded on energy exchange of iran |
| topic | k lpg price natural gas price opec oil basket price tests of convergence (integration) var |
| url | https://www.ijmae.com/article_114994_349af97e61e3e0ca4a9f3a0224529a6b.pdf |
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