The Impact of Oil Price Fluctuations on Consumption, Output, and Investment in China’s Industrial Sectors
This paper aims to simulate and evaluate the impacts of increases and decreases in oil price on industrial sectors in China. We develop an oil-economy computable general equilibrium (OE-CGE) model with crude oil as an important factor in production. The transmission mechanism of crude oil price swin...
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| Format: | Article |
| Language: | English |
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MDPI AG
2022-05-01
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| Series: | Energies |
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| Online Access: | https://www.mdpi.com/1996-1073/15/9/3411 |
| _version_ | 1797504926643912704 |
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| author | Zhaoyong Sun Xinyu Cai Wei-Chiao Huang |
| author_facet | Zhaoyong Sun Xinyu Cai Wei-Chiao Huang |
| author_sort | Zhaoyong Sun |
| collection | DOAJ |
| description | This paper aims to simulate and evaluate the impacts of increases and decreases in oil price on industrial sectors in China. We develop an oil-economy computable general equilibrium (OE-CGE) model with crude oil as an important factor in production. The transmission mechanism of crude oil price swings to various industrial sectors is described in the model. We calibrate parameters in the model parameters using input-output data. In addition, we simulate the rise and fall of oil prices in the model and assess the impact of crude oil prices on various industrial sectors. The results show that crude oil price changes have the greatest impact on the output and consumption of crude oil and gas extraction products sector, crude oil refined coke products, and processed nuclear fuel products sector. The investment of public utilities sector is the most sensitive to changes in crude oil price. When the price of crude oil changes, its investment drops significantly. Crude oil price stability is extremely important for investment and output stability in all sectors. |
| first_indexed | 2024-03-10T04:11:21Z |
| format | Article |
| id | doaj.art-a1651234cee044eeb121cea2f2a63bd4 |
| institution | Directory Open Access Journal |
| issn | 1996-1073 |
| language | English |
| last_indexed | 2024-03-10T04:11:21Z |
| publishDate | 2022-05-01 |
| publisher | MDPI AG |
| record_format | Article |
| series | Energies |
| spelling | doaj.art-a1651234cee044eeb121cea2f2a63bd42023-11-23T08:10:54ZengMDPI AGEnergies1996-10732022-05-01159341110.3390/en15093411The Impact of Oil Price Fluctuations on Consumption, Output, and Investment in China’s Industrial SectorsZhaoyong Sun0Xinyu Cai1Wei-Chiao Huang2School of Economics and Management, Xi’an University of Technology, Xi’an 710054, ChinaSchool of Economics and Management, Xi’an University of Technology, Xi’an 710054, ChinaDepartment of Economics, Western Michigan University, Kalamazoo, MI 49008-5330, USAThis paper aims to simulate and evaluate the impacts of increases and decreases in oil price on industrial sectors in China. We develop an oil-economy computable general equilibrium (OE-CGE) model with crude oil as an important factor in production. The transmission mechanism of crude oil price swings to various industrial sectors is described in the model. We calibrate parameters in the model parameters using input-output data. In addition, we simulate the rise and fall of oil prices in the model and assess the impact of crude oil prices on various industrial sectors. The results show that crude oil price changes have the greatest impact on the output and consumption of crude oil and gas extraction products sector, crude oil refined coke products, and processed nuclear fuel products sector. The investment of public utilities sector is the most sensitive to changes in crude oil price. When the price of crude oil changes, its investment drops significantly. Crude oil price stability is extremely important for investment and output stability in all sectors.https://www.mdpi.com/1996-1073/15/9/3411crude oil priceindustrial sectorsCGE model |
| spellingShingle | Zhaoyong Sun Xinyu Cai Wei-Chiao Huang The Impact of Oil Price Fluctuations on Consumption, Output, and Investment in China’s Industrial Sectors Energies crude oil price industrial sectors CGE model |
| title | The Impact of Oil Price Fluctuations on Consumption, Output, and Investment in China’s Industrial Sectors |
| title_full | The Impact of Oil Price Fluctuations on Consumption, Output, and Investment in China’s Industrial Sectors |
| title_fullStr | The Impact of Oil Price Fluctuations on Consumption, Output, and Investment in China’s Industrial Sectors |
| title_full_unstemmed | The Impact of Oil Price Fluctuations on Consumption, Output, and Investment in China’s Industrial Sectors |
| title_short | The Impact of Oil Price Fluctuations on Consumption, Output, and Investment in China’s Industrial Sectors |
| title_sort | impact of oil price fluctuations on consumption output and investment in china s industrial sectors |
| topic | crude oil price industrial sectors CGE model |
| url | https://www.mdpi.com/1996-1073/15/9/3411 |
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