The Long-run and Short-run Effects of Crude Oil Price on Methanol Market in Iran


Abstract views: 115 / PDF downloads: 244

Authors

  • Akbar Komijani
  • Nadiya Gandali Alikhani
  • Esmaeil Naderi

Abstract

Substituting crude oil exports with value-added petrochemical products is one of the main strategies for policy makers in oil-driven economies to isolating the real sectors of economy from oil price volatility. This policy inclination has led to a body of literature in energy economics in recent decades. As a case study, this paper investigates the short-run and long-run relationship between Iran’s oil price and methanol price which is one of the most important non-oil exports of the oil-exporting country. To do so, the weekly data from 18 Jan. 2009 to 18 Sep. 2011 in a VECM framework is applied. The results show that in the long-run, oil price hikes leads to proportional increase in methanol price while in the short-run, this impact is not significant. Keywords: Crude Oil; Methanol; VECM Model JEL Classifications: Q43; C1; C32

Downloads

Download data is not yet available.

Author Biography

Esmaeil Naderi

Faculty of Economics, University of TehranRanking: 301-400 in Shanghai Ranking of University

Downloads

Published

2012-12-08

How to Cite

Komijani, A., Alikhani, N. G., & Naderi, E. (2012). The Long-run and Short-run Effects of Crude Oil Price on Methanol Market in Iran. International Journal of Energy Economics and Policy, 3(1), 43–50. Retrieved from https://econjournals.com/index.php/ijeep/article/view/344

Issue

Vol. 3 No. 1 (2013)

Section

Articles

License

Submission of an article implies that the work described has not been published previously , that it is not under consideration for publication elsewhere, that its publication is approved by all authors and tacitly or explicitly by the responsible authorities where the work was carried out, and that, if accepted, will not be published elsewhere in the same form, without the written consent of the Publisher. The Editors reserve the right to edit or otherwise alter all contributions, but authors will receive proofs for approval before publication.