An econometrics view of worldwide fossil fuel consumption and the role of US

Shahriar Shafiee, Erkan Topal

Research output: Chapter in Book/Report/Conference proceedingChapter

57 Citations (Scopus)

Abstract

Crude oil, coal and gas, known as fossil fuels, play a crucial role in the global economy. This paper proposes new econometrics modelling to demonstrate the trend of fossil fuels consumption. The main variables affecting consumption trends are: world reserves, the price of fossil fuels, US production and US net imports. All variables have been analysed individually for more than half a century. The research found that while the consumption of fossil fuels worldwide has increased trends in the US production and net imports have been dependent on the type of fossil fuels. Most of the US coal and gas production has been for domestic use, which is why it does not have a strong influence on worldwide fossil fuel prices. Moreover, the reserves of fossil fuels have not shown any diminution during the last couple of decades and predictions that they were about to run out are not substantiated. The nominal and real price of fossil fuels was found to change depending on the type. Finally, estimates of three econometric models for the consumption of fossil fuels from 1949 to 2006 are presented which identify the effects of significant variables. Crown Copyright ?? 2007.
Original languageEnglish
Title of host publicationEnergy Policy
Pages775-786
Number of pages12
DOIs
Publication statusPublished - Feb 2008

Publication series

NameEnergy Policy
Volume36

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Keywords

  • Econometrics model
  • Global nonrenewable resource trend
  • Worldwide fossil fuel consumption

Cite this

Shafiee, S., & Topal, E. (2008). An econometrics view of worldwide fossil fuel consumption and the role of US. In Energy Policy (pp. 775-786). (Energy Policy; Vol. 36). https://doi.org/10.1016/j.enpol.2007.11.002