Abstract
We present an SVAR model of the global oil market that utilizes information on global oil consumption in the form of fuels. Under mild identifying assumptions, data on global fuel consumption provides comparatively sharp insights into structural parameters of the global oil market. The estimated short-run global fuel demand elasticity with respect to crude oil prices is around −2%, which is considerably more inelastic than estimates of local fuel demand elasticities based on disaggregated data. Our framework provides new evidence on the drivers of oil-market dynamics and on the effects of climate change policies that act through the price of oil.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
