Global Oil Prices and the Impact of China

This paper assesses the externality impact of China's excessive growth as a China factor on the world economy via examining the effect of Chinese GDP growth on oil prices as a case for the issue. Our assessment starts, firstly, by estimating a country-level demand model to determine the GDP inf...

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Main Author: Beirne, John (author)
Other Authors: Beulen, Christian (author), Liu, Guy (author), Mirzaei, Ali (author)
Format: article
Published: 2013
Subjects:
Online Access:http://hdl.handle.net/11073/8558
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author Beirne, John
author2 Beulen, Christian
Liu, Guy
Mirzaei, Ali
author2_role author
author
author
author_facet Beirne, John
Beulen, Christian
Liu, Guy
Mirzaei, Ali
author_role author
dc.creator.none.fl_str_mv Beirne, John
Beulen, Christian
Liu, Guy
Mirzaei, Ali
dc.date.none.fl_str_mv 2013-12
2016-10-20T05:34:39Z
2016-10-20T05:34:39Z
dc.format.none.fl_str_mv application/pdf
dc.identifier.none.fl_str_mv Beirne, John, Beulen, Christian; Liu, Guy; Mirzaei, Ali. "Global Oil Prices and the Impact of China." China Economic Review 27 (December, 2013): 37-51
1043-951X
http://hdl.handle.net/11073/8558
10.1016/j.chieco.2013.07.001
dc.language.none.fl_str_mv en_US
dc.publisher.none.fl_str_mv Elsevier
dc.relation.none.fl_str_mv China Economic Review
http://dx.doi.org/10.1016/j.chieco.2013.07.001
dc.subject.none.fl_str_mv China
Oil prices
Externality costs
dc.title.none.fl_str_mv Global Oil Prices and the Impact of China
dc.type.none.fl_str_mv info:eu-repo/semantics/publishedVersion
info:eu-repo/semantics/article
description This paper assesses the externality impact of China's excessive growth as a China factor on the world economy via examining the effect of Chinese GDP growth on oil prices as a case for the issue. Our assessment starts, firstly, by estimating a country-level demand model to determine the GDP influences of an individual country on oil demand. Secondly, it estimates the impact of world aggregate demand on oil prices. This two-stage approach enables us to estimate the effect of the GDP growth of an individual nation on oil demand globally and the global price of oil. The estimated demand model is applied to quantify the effect of the Chinese GDP growth on the price of oil through simulations of a range of scenarios for each year over the period 2009 to 2030. We find that China's excessive growth adds a premium to the price of oil which increases over time. The results have policy implications in terms of the sustainability of the Chinese faster growth rate from the perspective of its negative externalities to the world.
format article
id aus_296f58329d726af3930a8eebef6832fd
identifier_str_mv Beirne, John, Beulen, Christian; Liu, Guy; Mirzaei, Ali. "Global Oil Prices and the Impact of China." China Economic Review 27 (December, 2013): 37-51
1043-951X
10.1016/j.chieco.2013.07.001
language_invalid_str_mv en_US
network_acronym_str aus
network_name_str aus
oai_identifier_str oai:repository.aus.edu:11073/8558
publishDate 2013
publisher.none.fl_str_mv Elsevier
repository.mail.fl_str_mv
repository.name.fl_str_mv
repository_id_str
spelling Global Oil Prices and the Impact of ChinaBeirne, JohnBeulen, ChristianLiu, GuyMirzaei, AliChinaOil pricesExternality costsThis paper assesses the externality impact of China's excessive growth as a China factor on the world economy via examining the effect of Chinese GDP growth on oil prices as a case for the issue. Our assessment starts, firstly, by estimating a country-level demand model to determine the GDP influences of an individual country on oil demand. Secondly, it estimates the impact of world aggregate demand on oil prices. This two-stage approach enables us to estimate the effect of the GDP growth of an individual nation on oil demand globally and the global price of oil. The estimated demand model is applied to quantify the effect of the Chinese GDP growth on the price of oil through simulations of a range of scenarios for each year over the period 2009 to 2030. We find that China's excessive growth adds a premium to the price of oil which increases over time. The results have policy implications in terms of the sustainability of the Chinese faster growth rate from the perspective of its negative externalities to the world.Elsevier2016-10-20T05:34:39Z2016-10-20T05:34:39Z2013-12info:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/articleapplication/pdfBeirne, John, Beulen, Christian; Liu, Guy; Mirzaei, Ali. "Global Oil Prices and the Impact of China." China Economic Review 27 (December, 2013): 37-511043-951Xhttp://hdl.handle.net/11073/855810.1016/j.chieco.2013.07.001en_USChina Economic Reviewhttp://dx.doi.org/10.1016/j.chieco.2013.07.001oai:repository.aus.edu:11073/85582024-08-22T12:17:35Z
spellingShingle Global Oil Prices and the Impact of China
Beirne, John
China
Oil prices
Externality costs
status_str publishedVersion
title Global Oil Prices and the Impact of China
title_full Global Oil Prices and the Impact of China
title_fullStr Global Oil Prices and the Impact of China
title_full_unstemmed Global Oil Prices and the Impact of China
title_short Global Oil Prices and the Impact of China
title_sort Global Oil Prices and the Impact of China
topic China
Oil prices
Externality costs
url http://hdl.handle.net/11073/8558