Estimating the long-run crude oil demand function of China: Some new evidence and policy options

B-Tier
Journal: Energy Policy
Year: 2022
Volume: 170
Issue: C

Authors (7)

Li, Sisi (not in RePEc) Khan, Sufyan Ullah (not in RePEc) Yao, Yao (not in RePEc) Chen, George S. (not in RePEc) Zhang, Lin (School of Energy) Salim, Ruhul (Curtin University) Huo, Jiaying (not in RePEc)

Score contribution per author:

0.287 = (α=2.01 / 7 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

China's remarkable economic progress over the past three decades has been complemented by massive energy consumption. Although coal has long been the primary energy source, the rise in crude oil use has been viewed as more contentious, because a large portion of crude oil is imported, whereas the economy is mostly self-sufficient in coal. We examine the role of R&D effort and self-sufficiency on China's oil import function from 1980 to 2020. Using the autoregressive distributed lag model, we find that the R&D effort raises oil imports in the long run. However, we find oil imports to be independent from self-sufficiency in the long run. We also find that China's accession to the World Trade Organization has significantly changed the cointegrating relationship in the oil import function. Our results suggest that the government should continue to incentivize energy-saving measures and fund research projects on renewable energy sources. Furthermore, deregulation in the oil market is quintessential to energy security and stable growth in the long run.

Technical Details

RePEc Handle
repec:eee:enepol:v:170:y:2022:i:c:s0301421522004633
Journal Field
Energy
Author Count
7
Added to Database
2026-01-25