Price elasticity of demand for crude oil: estimates for 23 countries
Open accessAbstract
This paper uses a multiple regression model derived from an adaptation of Nerlove's partial adjustment model to estimate both the short–run and long–run elasticities of demand for crude oil in 23 countries. The estimates so obtained confirm that the demand for crude oil internationally is highly insensitive to changes in price.
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Surveys by Dahl (1993) and Cooper (2003) report oil demand elasticity estimates between -0.05 and -0.07.
“For example, surveys by Dahl (1993) and Cooper (2003) report estimates between À0.05 and À0.07.”
From THE ROLE OF INVENTORIES AND SPECULATIVE TRADING IN THE GLOBAL MARKET FOR CRUDE OIL (2014) · cites this paper as Cooper (2003)
Much of the existing literature has attempted to estimate the oil demand elasticity from dynamic reduced-form models that do not distinguish between oil demand and oil supply shocks.
“First, much of the existing literature has attempted to estimate the oil demand elasticity from dynamic reduced-form models that do not distinguish between oil demand and oil supply shocks (see, for example, Dahl, 1993; Cooper, 2003).”
From THE ROLE OF INVENTORIES AND SPECULATIVE TRADING IN THE GLOBAL MARKET FOR CRUDE OIL (2014) · cites this paper as Cooper, 2003
Conventional estimates of the short-run price elasticity of oil demand from dynamic reduced-form regressions, as in Dahl (1993) and Cooper (2003), ignored the endogeneity of the real price of oil, causing the elasticity estimate to be downward biased.
“One problem is that conventional estimates of this elasticity from dynamic reduced-form regressions, as in Dahl (1993) and Cooper (2003), have ignored the endogeneity of the real price of oil, causing the elasticity estimate to be downward biased.”
From THE ROLE OF INVENTORIES AND SPECULATIVE TRADING IN THE GLOBAL MARKET FOR CRUDE OIL (2014) · cites this paper as Cooper (2003)
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THE ROLE OF INVENTORIES AND SPECULATIVE TRADING IN THE GLOBAL MARKET FOR CRUDE OIL
Kilian, L., & Murphy, D. P. (2014) · Journal of Applied Econometrics · doi:10.1002/jae.2322 · Cited by 1,481 · see citing works
Nemet, G. F., & Brandt, A. R. (2012) · The Energy Journal · doi:10.5547/issn0195-6574-ej-vol33-no1-3 · Cited by 29 · see citing works
- Authors
- Cooper, J. C. B.
- Affiliations
- Glasgow Caledonian University (GB)
- Corresponding author
- Cooper, John C.B.
- Venue
- OPEC Review
- Publisher
- Wiley
- Published
- 2003-03
- Volume
- 27
- Issue
- 1
- Pages
- 1-8
- ISSN
- 0277-0180 (ISSN-L)
- 1468-0076
- OpenAlex
- W2002928645
- Cited by
- 340
- References
- 0
- Citations by year
- 2026: 7 · 2025: 5 · 2024: 5 · 2023: 6 · 2022: 16 · 2021: 18 · 2020: 21 · 2019: 11 · 2018: 21 · 2017: 19 · 2016: 19 · 2015: 18 · 2014: 17 · 2013: 34 · 2012: 18
- FWCI
- 2.56
- Type
- journal article
- Language
- en
- Open access
- green
- papers.ssrn.com
- Locations
- OPEC Review (publishedVersion)
- SSRN Electronic Journal (submittedVersion)
- RePEc: Research Papers in Economics (submittedVersion)
- Topics
- Physical Sciences › Energy › Renewable Energy, Sustainability and the Environment › Energy, Environment, and Transportation Policies
- Social Sciences › Economics, Econometrics and Finance › Economics and Econometrics › Market Dynamics and Volatility
- Social Sciences › Economics, Econometrics and Finance › Economics and Econometrics › Economics of Agriculture and Food Markets
- Keywords
- price elasticity, crude oil, oil demand, short-run and long-run elasticity, world oil market
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