According to “Hotelling rule” price of an “exhaustible resource” exceeds its marginal cost of production in perfect competition equilibrium by amount equal to the opportunity cost of depleting the resource now rather than next periods. This cost is called “scarcity rent”. Oil price exceeds its marginal extraction costs significantly. This can be attributed two different sources: effect of scarc...

in this paper, a model based on gmdh type neural network, is used to predict gas price in the spot market while using oil spot market price, gas spot market price, gas future market price, oil future market price and average temperature of the weather. the results suggest that gmdh neural network model, according to the root mean squared error (rmse) and direction statistics (dstat) statistics ...

This paper presents an oil price cartel model. The aggregate reaction functions for non-cartel producers and for substitute suppliers are included. The former group acts as a price-taker, while the latter expects oil prices in production of its non-oil energy resources. This expectation about prices affects a cartel’s oil demand and, thus, gives intertemporal price elasticities It turns out tha...

Based on monthly observations, I specify an econometric model capturing the driving forces behind the crude oil price series in recent years. A large set of covariates, such as supply and demand variables as well as futures market variables, is used to test the impact on the crude oil price. Current price movements are a result of scarce refining capacity and speculators betting on higher price...

oil seeds and crude vegetable oil are the raw materials used in vegetable oil producing industry. vegetable oil producing plants in iran are dependent on importing the material in a way that more than 90 percent of these materials are to be imported. soybean oil seed is the main oil seed utilized in the oil producing plants which is procured through importation from other countries. in the worl...

Oil price shocks are the major source of economic instability in oil exporting developing countries, including Iran. In this paper a Multi Sector Dynamic Stochastic General Equilibrium model, with emphasis on optimization of oil sector as a producing sector is designed. Furthermore, an optimizing import sector is introduced into the model by considering the price rigidity in imported goods as a...

In recent years, the rapid increase in CO 2 concentration has accelerated global warming. As a result, sea levels rise, glaciers melt, extreme weather occurs, and species become extinct. world’s largest emission rights trading market, EU Emissions Trading System (EU-ETS) reached 1.855 billion tons of quotas by 2019, influencing development carbon market. Crude oil, as one major fossil energy so...

a r t i c l e i n f o A global computable general equilibrium model is used to analyze the economic impacts of rising oil prices with endogenously determined availability of biofuels to mitigate those impacts. The negative effects on the global economy are comparable to those found in other studies, but the impacts are unevenly distributed across countries/regions or sectors. The agricultural s...

In this paper, using the co-integrated VAR model we attempt to empirically investigate the effects of oil price and monetary shocks on the Russian economy covering the period 1995:Q3-2007:Q4. Our finding is that real GDP and inflation in Russia exhibit a positive response to an oil price increase, but not in the case of interest rates. Also we see that the impact of the oil price shock on the e...