The Long-run and Short-run Effects of Crude Oil Price on Methanol Market in Iran

Akbar Komijani; Nadiya Gandali Alikhani; Esmaeil Naderi

The Long-run and Short-run Effects of Crude Oil Price on Methanol Market in Iran

Year 2013, Volume: 3 Issue: 1, 43 - 50, 01.03.2013

Akbar Komijani Nadiya Gandali Alikhani Esmaeil Naderi

Abstract

Substituting crude oil exports with value-added petrochemical products is one of the main strategies for policy makers in oil-driven economies to isolating the real sectors of economy from oil price volatility. This policy inclination has led to a body of literature in energy economics in recent decades. As a case study, this paper investigates the short-run and long-run relationship between Iran’s oil price and methanol price which is one of the most important non-oil exports of the oil-exporting country. To do so, the weekly data from 18 Jan. 2009 to 18 Sep. 2011 in a VECM framework is applied. The results show that in the long-run, oil price hikes leads to proportional increase in methanol price while in the short-run, this impact is not significant.

Keywords

Crude Oil, Methanol, VECM Model

Year 2013, Volume: 3 Issue: 1, 43 - 50, 01.03.2013

Akbar Komijani Nadiya Gandali Alikhani Esmaeil Naderi

Abstract

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Details

Other ID	JA43AV66HN
Journal Section	Research Article
Authors	Akbar Komijani This is me Nadiya Gandali Alikhani This is me Esmaeil Naderi This is me
Publication Date	March 1, 2013
Published in Issue	Year 2013 Volume: 3 Issue: 1

Cite

APA	Komijani, A., Alikhani, N. G., & Naderi, E. (2013). The Long-run and Short-run Effects of Crude Oil Price on Methanol Market in Iran. International Journal of Energy Economics and Policy, 3(1), 43-50.
AMA	Komijani A, Alikhani NG, Naderi E. The Long-run and Short-run Effects of Crude Oil Price on Methanol Market in Iran. IJEEP. March 2013;3(1):43-50.
Chicago	Komijani, Akbar, Nadiya Gandali Alikhani, and Esmaeil Naderi. “The Long-Run and Short-Run Effects of Crude Oil Price on Methanol Market in Iran”. International Journal of Energy Economics and Policy 3, no. 1 (March 2013): 43-50.
EndNote	Komijani A, Alikhani NG, Naderi E (March 1, 2013) The Long-run and Short-run Effects of Crude Oil Price on Methanol Market in Iran. International Journal of Energy Economics and Policy 3 1 43–50.
IEEE	A. Komijani, N. G. Alikhani, and E. Naderi, “The Long-run and Short-run Effects of Crude Oil Price on Methanol Market in Iran”, IJEEP, vol. 3, no. 1, pp. 43–50, 2013.
ISNAD	Komijani, Akbar et al. “The Long-Run and Short-Run Effects of Crude Oil Price on Methanol Market in Iran”. International Journal of Energy Economics and Policy 3/1 (March 2013), 43-50.
JAMA	Komijani A, Alikhani NG, Naderi E. The Long-run and Short-run Effects of Crude Oil Price on Methanol Market in Iran. IJEEP. 2013;3:43–50.
MLA	Komijani, Akbar et al. “The Long-Run and Short-Run Effects of Crude Oil Price on Methanol Market in Iran”. International Journal of Energy Economics and Policy, vol. 3, no. 1, 2013, pp. 43-50.
Vancouver	Komijani A, Alikhani NG, Naderi E. The Long-run and Short-run Effects of Crude Oil Price on Methanol Market in Iran. IJEEP. 2013;3(1):43-50.