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Fuel Consumption in Ukraine: Evidence from Vector Error Correction Model

Author

Listed:
  • Marianna Oliskevych

    (Ivan Franko National University of Lviv, Ukraine,)

  • Galyna Beregova

    (Lviv Institute of Banking University, Ukraine,)

  • Viktor Tokarchuk

    (National University of KyivMohyla Academy, Ukraine.)

Abstract

This paper aims to investigate the problems of energy market in Ukrainian economy. The empirical research of various energy sources in Ukraine showed the existence of significant relationships between coal, gas, diesel fuel, gasoline and oil consumption. We estimated the vector error correction model that combined evaluation of long-term interrelations between different fuels indexes and the dynamic description of their short-term behaviour. The modelling showed that in the long-run there were two equilibrium relationships that determined the dynamics of fuel consumption in Ukraine. We estimated the adjustment speeds and described the correlation between short-run changes in fuel usage and deviations from long-run equilibrium. The gas consumption was the most valuable kind of energy that had a great impact on functioning of Ukrainian energy market and the whole economy. The diversification of energy consumption types can give an opportunity to improve the economic situation.

Suggested Citation

  • Marianna Oliskevych & Galyna Beregova & Viktor Tokarchuk, 2018. "Fuel Consumption in Ukraine: Evidence from Vector Error Correction Model," International Journal of Energy Economics and Policy, Econjournals, vol. 8(5), pages 58-63.
    • Handle: RePEc:eco:journ2:2018-05-8
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    2. Lidiya Guryanova & Olena Bolotova & Vitalii Gvozdytskyi & Sergienko Olena, 2020. "Long-term financial sustainability: An evaluation methodology with threats considerations," RIVISTA DI STUDI SULLA SOSTENIBILITA', FrancoAngeli Editore, vol. 0(1), pages 47-69.

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    More about this item

    Keywords

    energy market; fuel consumption; vector autoregressive model.;
    All these keywords.

    JEL classification:

    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D

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