Oil Intensities and Oil Prices : Evidence for Latin America

Crude oil prices have dramatically increased over the past years and are now at a historical maximum in nominal terms and very close to it in real terms. It is difficult to argue, at least for net oil importers, that higher oil prices have a positi...

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Main Authors:	Alaimo, Veronica, Lopez, Humberto
Format:	Policy Research Working Paper
Language:	English
Published:	World Bank, Washington, DC 2012
Subjects:	APPROACH ATMOSPHERIC CONCENTRATIONS AVERAGE PRICE AVERAGE PRICES BALANCE BALANCE OF PAYMENTS BARREL BARRELS OF OIL BARRELS PER DAY BURNING FOSSIL FUELS CARBON CARBON DIOXIDE CARBON DIOXIDE CONCENTRATIONS CARBON EMISSIONS CARBON TAXES CENTRAL AMERICA CENTRAL AMERICAN CHANGES IN ENERGY INTENSITY CLIMATE CHANGE CONSUMER PRICES CONSUMPTION OF FOSSIL CRUDE OIL CRUDE OIL PRICES DIESEL DIESEL FUELS DOMESTIC GAS ECONOMETRIC RESULTS EFFICIENCY IMPROVEMENTS EFFICIENT EQUIPMENT EMISSIONS EMPIRICAL RESULTS ENERGY DEMAND ENERGY EFFICIENCY ENERGY INTENSITY ENERGY PRICE ENERGY PRICES ENERGY SOURCES ENERGY USE FOSSIL FOSSIL FUEL FOSSIL FUEL CONSUMPTION FOSSIL FUELS GAS GAS PRICES GASOLINE GASOLINE PRICE GASOLINE PRICES GREEN HOUSE GASES GROSS DOMESTIC PRODUCT HIGH OIL PRICES HIGHER ENERGY PRICES HIGHER OIL PRICES HYDROPOWER INCOME INFLATION LATIN AMERICAN MARKET BASED MECHANISMS NET OIL OIL OIL CONSUMER OIL CONSUMPTION OIL CRISIS OIL DEMAND OIL EXPORTER OIL EXPORTERS OIL IMPORTER OIL IMPORTERS OIL PRICE OIL PRICE CHANGES OIL PRICE FLUCTUATIONS OIL PRICES OIL SHOCKS PETROLEUM PRICE CHANGE PRICE DECREASES PRICE INCREASE PRICE INCREASES PRICE INDEX PRICE LEVEL PRICE OF OIL PRODUCTION COSTS REDUCTION IN EMISSIONS REGULAR GASOLINE RETAIL RETAIL PRICE SUBSTITUTE TYPES OF FUELS WORLD OIL WORLD OIL DEMAND
Online Access:	http://documents.worldbank.org/curated/en/2008/06/9493553/oil-intensities-oil-prices-evidence-latin-america http://hdl.handle.net/10986/6657

id	okr-10986-6657
recordtype	oai_dc
spelling	okr-10986-66572021-04-23T14:02:32Z Oil Intensities and Oil Prices : Evidence for Latin America Alaimo, Veronica Lopez, Humberto APPROACH ATMOSPHERIC CONCENTRATIONS AVERAGE PRICE AVERAGE PRICES BALANCE BALANCE OF PAYMENTS BARREL BARRELS OF OIL BARRELS PER DAY BURNING FOSSIL FUELS CARBON CARBON DIOXIDE CARBON DIOXIDE CONCENTRATIONS CARBON EMISSIONS CARBON TAXES CENTRAL AMERICA CENTRAL AMERICAN CHANGES IN ENERGY INTENSITY CLIMATE CHANGE CONSUMER PRICES CONSUMPTION OF FOSSIL CRUDE OIL CRUDE OIL PRICES DIESEL DIESEL FUELS DOMESTIC GAS ECONOMETRIC RESULTS EFFICIENCY IMPROVEMENTS EFFICIENT EQUIPMENT EMISSIONS EMPIRICAL RESULTS ENERGY DEMAND ENERGY EFFICIENCY ENERGY INTENSITY ENERGY PRICE ENERGY PRICES ENERGY SOURCES ENERGY USE FOSSIL FOSSIL FUEL FOSSIL FUEL CONSUMPTION FOSSIL FUELS GAS GAS PRICES GASOLINE GASOLINE PRICE GASOLINE PRICES GREEN HOUSE GASES GROSS DOMESTIC PRODUCT HIGH OIL PRICES HIGHER ENERGY PRICES HIGHER OIL PRICES HYDROPOWER INCOME INFLATION LATIN AMERICAN MARKET BASED MECHANISMS NET OIL OIL OIL CONSUMER OIL CONSUMPTION OIL CRISIS OIL DEMAND OIL EXPORTER OIL EXPORTERS OIL IMPORTER OIL IMPORTERS OIL PRICE OIL PRICE CHANGES OIL PRICE FLUCTUATIONS OIL PRICES OIL SHOCKS PETROLEUM PRICE CHANGE PRICE DECREASES PRICE INCREASE PRICE INCREASES PRICE INDEX PRICE LEVEL PRICE OF OIL PRODUCTION COSTS REDUCTION IN EMISSIONS REGULAR GASOLINE RETAIL RETAIL PRICE SUBSTITUTE TYPES OF FUELS WORLD OIL WORLD OIL DEMAND Crude oil prices have dramatically increased over the past years and are now at a historical maximum in nominal terms and very close to it in real terms. It is difficult to argue, at least for net oil importers, that higher oil prices have a positive impact on welfare. In fact, the negative relationship between oil prices and economic activity has been well documented in the literature. Yet, to the extent that higher oil prices lead to lower oil consumption, it would be possible to argue that not all the effects of a price increase are negative. Climate change concerns have been on the rise in recent years and fossil fuel consumption is generally viewed as one of the main causes behind it. Thus this paper explores whether higher oil prices contribute to lowering oil intensities (that is, oil consumption per unit of gross domestic product). The findings show that following an increase in oil prices, OECD countries tend to reduce oil intensity. However, the same result does not hold for Latin America (and more generally for middle-income countries) where oil intensities appear to be unaffected by oil prices. The paper also explores why this is so. 2012-05-30T16:50:09Z 2012-05-30T16:50:09Z 2008-06 http://documents.worldbank.org/curated/en/2008/06/9493553/oil-intensities-oil-prices-evidence-latin-america http://hdl.handle.net/10986/6657 English Policy Research Working Paper No. 4640 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research Latin America & Caribbean
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English
topic	APPROACH ATMOSPHERIC CONCENTRATIONS AVERAGE PRICE AVERAGE PRICES BALANCE BALANCE OF PAYMENTS BARREL BARRELS OF OIL BARRELS PER DAY BURNING FOSSIL FUELS CARBON CARBON DIOXIDE CARBON DIOXIDE CONCENTRATIONS CARBON EMISSIONS CARBON TAXES CENTRAL AMERICA CENTRAL AMERICAN CHANGES IN ENERGY INTENSITY CLIMATE CHANGE CONSUMER PRICES CONSUMPTION OF FOSSIL CRUDE OIL CRUDE OIL PRICES DIESEL DIESEL FUELS DOMESTIC GAS ECONOMETRIC RESULTS EFFICIENCY IMPROVEMENTS EFFICIENT EQUIPMENT EMISSIONS EMPIRICAL RESULTS ENERGY DEMAND ENERGY EFFICIENCY ENERGY INTENSITY ENERGY PRICE ENERGY PRICES ENERGY SOURCES ENERGY USE FOSSIL FOSSIL FUEL FOSSIL FUEL CONSUMPTION FOSSIL FUELS GAS GAS PRICES GASOLINE GASOLINE PRICE GASOLINE PRICES GREEN HOUSE GASES GROSS DOMESTIC PRODUCT HIGH OIL PRICES HIGHER ENERGY PRICES HIGHER OIL PRICES HYDROPOWER INCOME INFLATION LATIN AMERICAN MARKET BASED MECHANISMS NET OIL OIL OIL CONSUMER OIL CONSUMPTION OIL CRISIS OIL DEMAND OIL EXPORTER OIL EXPORTERS OIL IMPORTER OIL IMPORTERS OIL PRICE OIL PRICE CHANGES OIL PRICE FLUCTUATIONS OIL PRICES OIL SHOCKS PETROLEUM PRICE CHANGE PRICE DECREASES PRICE INCREASE PRICE INCREASES PRICE INDEX PRICE LEVEL PRICE OF OIL PRODUCTION COSTS REDUCTION IN EMISSIONS REGULAR GASOLINE RETAIL RETAIL PRICE SUBSTITUTE TYPES OF FUELS WORLD OIL WORLD OIL DEMAND
spellingShingle	APPROACH ATMOSPHERIC CONCENTRATIONS AVERAGE PRICE AVERAGE PRICES BALANCE BALANCE OF PAYMENTS BARREL BARRELS OF OIL BARRELS PER DAY BURNING FOSSIL FUELS CARBON CARBON DIOXIDE CARBON DIOXIDE CONCENTRATIONS CARBON EMISSIONS CARBON TAXES CENTRAL AMERICA CENTRAL AMERICAN CHANGES IN ENERGY INTENSITY CLIMATE CHANGE CONSUMER PRICES CONSUMPTION OF FOSSIL CRUDE OIL CRUDE OIL PRICES DIESEL DIESEL FUELS DOMESTIC GAS ECONOMETRIC RESULTS EFFICIENCY IMPROVEMENTS EFFICIENT EQUIPMENT EMISSIONS EMPIRICAL RESULTS ENERGY DEMAND ENERGY EFFICIENCY ENERGY INTENSITY ENERGY PRICE ENERGY PRICES ENERGY SOURCES ENERGY USE FOSSIL FOSSIL FUEL FOSSIL FUEL CONSUMPTION FOSSIL FUELS GAS GAS PRICES GASOLINE GASOLINE PRICE GASOLINE PRICES GREEN HOUSE GASES GROSS DOMESTIC PRODUCT HIGH OIL PRICES HIGHER ENERGY PRICES HIGHER OIL PRICES HYDROPOWER INCOME INFLATION LATIN AMERICAN MARKET BASED MECHANISMS NET OIL OIL OIL CONSUMER OIL CONSUMPTION OIL CRISIS OIL DEMAND OIL EXPORTER OIL EXPORTERS OIL IMPORTER OIL IMPORTERS OIL PRICE OIL PRICE CHANGES OIL PRICE FLUCTUATIONS OIL PRICES OIL SHOCKS PETROLEUM PRICE CHANGE PRICE DECREASES PRICE INCREASE PRICE INCREASES PRICE INDEX PRICE LEVEL PRICE OF OIL PRODUCTION COSTS REDUCTION IN EMISSIONS REGULAR GASOLINE RETAIL RETAIL PRICE SUBSTITUTE TYPES OF FUELS WORLD OIL WORLD OIL DEMAND Alaimo, Veronica Lopez, Humberto Oil Intensities and Oil Prices : Evidence for Latin America
geographic_facet	Latin America & Caribbean
relation	Policy Research Working Paper No. 4640
description	Crude oil prices have dramatically increased over the past years and are now at a historical maximum in nominal terms and very close to it in real terms. It is difficult to argue, at least for net oil importers, that higher oil prices have a positive impact on welfare. In fact, the negative relationship between oil prices and economic activity has been well documented in the literature. Yet, to the extent that higher oil prices lead to lower oil consumption, it would be possible to argue that not all the effects of a price increase are negative. Climate change concerns have been on the rise in recent years and fossil fuel consumption is generally viewed as one of the main causes behind it. Thus this paper explores whether higher oil prices contribute to lowering oil intensities (that is, oil consumption per unit of gross domestic product). The findings show that following an increase in oil prices, OECD countries tend to reduce oil intensity. However, the same result does not hold for Latin America (and more generally for middle-income countries) where oil intensities appear to be unaffected by oil prices. The paper also explores why this is so.
format	Publications & Research :: Policy Research Working Paper
author	Alaimo, Veronica Lopez, Humberto
author_facet	Alaimo, Veronica Lopez, Humberto
author_sort	Alaimo, Veronica
title	Oil Intensities and Oil Prices : Evidence for Latin America
title_short	Oil Intensities and Oil Prices : Evidence for Latin America
title_full	Oil Intensities and Oil Prices : Evidence for Latin America
title_fullStr	Oil Intensities and Oil Prices : Evidence for Latin America
title_full_unstemmed	Oil Intensities and Oil Prices : Evidence for Latin America
title_sort	oil intensities and oil prices : evidence for latin america
publisher	World Bank, Washington, DC
publishDate	2012
url	http://documents.worldbank.org/curated/en/2008/06/9493553/oil-intensities-oil-prices-evidence-latin-america http://hdl.handle.net/10986/6657
_version_	1764400859446247424

Oil Intensities and Oil Prices : Evidence for Latin America

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