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Oil price shocks and European industries

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  • Scholtens, Bert
  • Yurtsever, Cenk

Abstract

We investigate the impact of oil price shocks at the industry level in the Euro area for the period 1983–2007. We use different oil price specifications and use dynamic VAR models and multivariate regression to investigate how 38 different industries respond to oil price shocks. We pay specific attention to the asymmetry of the industries' responses regarding oil price increases and decreases. We find that the impact of oil price shocks substantially differs along the different industries. We find that the significance of this result also differs along the various oil price specifications. The results are quite robust to the way in which we model the problem.

Suggested Citation

  • Scholtens, Bert & Yurtsever, Cenk, 2012. "Oil price shocks and European industries," Energy Economics, Elsevier, vol. 34(4), pages 1187-1195.
    • Handle: RePEc:eee:eneeco:v:34:y:2012:i:4:p:1187-1195
    DOI: 10.1016/j.eneco.2011.10.012
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    More about this item

    Keywords

    Oil prices; Europe; VAR; Industries;
    All these keywords.

    JEL classification:

    • G12 - Financial Economics - - General Financial Markets - - - Asset Pricing; Trading Volume; Bond Interest Rates
    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy
    • Q47 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy Forecasting

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