IDEAS home Printed from https://ideas.repec.org/a/eco/journ2/2018-05-8.html
   My bibliography  Save this article

Fuel Consumption in Ukraine: Evidence from Vector Error Correction Model

Author

Listed:
  • Marianna Oliskevych

    (Ivan Franko National University of Lviv, Ukraine,)

  • Galyna Beregova

    (Lviv Institute of Banking University, Ukraine,)

  • Viktor Tokarchuk

    (National University of KyivMohyla Academy, Ukraine.)

Abstract

This paper aims to investigate the problems of energy market in Ukrainian economy. The empirical research of various energy sources in Ukraine showed the existence of significant relationships between coal, gas, diesel fuel, gasoline and oil consumption. We estimated the vector error correction model that combined evaluation of long-term interrelations between different fuels indexes and the dynamic description of their short-term behaviour. The modelling showed that in the long-run there were two equilibrium relationships that determined the dynamics of fuel consumption in Ukraine. We estimated the adjustment speeds and described the correlation between short-run changes in fuel usage and deviations from long-run equilibrium. The gas consumption was the most valuable kind of energy that had a great impact on functioning of Ukrainian energy market and the whole economy. The diversification of energy consumption types can give an opportunity to improve the economic situation.

Suggested Citation

  • Marianna Oliskevych & Galyna Beregova & Viktor Tokarchuk, 2018. "Fuel Consumption in Ukraine: Evidence from Vector Error Correction Model," International Journal of Energy Economics and Policy, Econjournals, vol. 8(5), pages 58-63.
    • Handle: RePEc:eco:journ2:2018-05-8
    as

    Download full text from publisher

    File URL: https://www.econjournals.com/index.php/ijeep/article/download/6825/3925
    Download Restriction: no
    File URL: https://www.econjournals.com/index.php/ijeep/article/view/6825/3925
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Zsuzsanna Csereklyei, M. d. Mar Rubio-Varas, and David I. Stern, 2016. "Energy and Economic Growth: The Stylized Facts," The Energy Journal, International Association for Energy Economics, vol. 0(Number 2).
    2. Wadim Strielkowski & tep n Kr ka & Evgeny Lisin, 2013. "Energy Economics and Policy of Renewable Energy Sources in the European Union," International Journal of Energy Economics and Policy, Econjournals, vol. 3(4), pages 333-340.
    3. Jürgen Blazejczak & Dietmar Edler & Wolf-Peter Schill, 2014. "Improved Energy Efficiency: Vital for Energy Transition and Stimulus for Economic Growth," DIW Economic Bulletin, DIW Berlin, German Institute for Economic Research, vol. 4(4), pages 3-15.
    4. Iryna Lukianenko & Marianna Oliskevych, 2017. "Evidence of Asymmetries and Nonlinearity of Unemployment and Labour Force Participation Rate in Ukraine," Prague Economic Papers, Prague University of Economics and Business, vol. 2017(5), pages 578-601.
    5. Marianna Oliskevych, 2015. "Hysteresis, Structural Shocks and Common Trends in Labor Market: Consequence for Ukraine," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 4, pages 120-137.
    6. Bauer, Gordon, 2016. "Evaluation of usage and fuel savings of solar ovens in Nicaragua," Energy Policy, Elsevier, vol. 97(C), pages 250-257.
    7. Khalid Zaman, 2015. "Determinants of Nuclear Energy Consumption in South Asia: Economic and Energy Security Issues," International Journal of Energy Economics and Policy, Econjournals, vol. 5(3), pages 822-827.
    8. Peters, Valerie A. & Manley, Dawn K., 2012. "An examination of fuel consumption trends in construction projects," Energy Policy, Elsevier, vol. 50(C), pages 496-506.
    9. Philip Ifeakachukwu Nwosa, 2012. "Domestic fuel price and the Nigerian macroeconomy," African Journal of Economic and Sustainable Development, Inderscience Enterprises Ltd, vol. 1(4), pages 353-365.
    10. Economou, Agisilaos, 2010. "Renewable energy resources and sustainable development in Mykonos (Greece)," Renewable and Sustainable Energy Reviews, Elsevier, vol. 14(5), pages 1496-1501, June.
    11. Roger Fouquet, 2016. "Path dependence in energy systems and economic development," Nature Energy, Nature, vol. 1(8), pages 1-5, August.
    12. Dmitry Burakov & Max Freidin, 2017. "Financial Development, Economic Growth and Renewable Energy Consumption in Russia: A Vector Error Correction Approach," International Journal of Energy Economics and Policy, Econjournals, vol. 7(6), pages 39-47.
    13. Wei, Yu, 2012. "Forecasting volatility of fuel oil futures in China: GARCH-type, SV or realized volatility models?," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 391(22), pages 5546-5556.
    14. Lidiya Guryanova & Tamara Klebanova & Tetiana Trunova, 2017. "Modeling the Financial Strategy of the Enterprise in an Unstable Environment," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 3, pages 91-109.
    15. repec:prg:jnlpep:v:preprint:id:633:p:1-24 is not listed on IDEAS
    16. Balcilar, Mehmet & Hammoudeh, Shawkat & Asaba, Nwin-Anefo Fru, 2015. "A regime-dependent assessment of the information transmission dynamics between oil prices, precious metal prices and exchange rates," International Review of Economics & Finance, Elsevier, vol. 40(C), pages 72-89.
    17. Abdullah Fisne & Olgun Esen, 2014. "Coal and gas outburst hazard in Zonguldak Coal Basin of Turkey, and association with geological parameters," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 74(3), pages 1363-1390, December.
    18. Brueckner, Jan K. & Abreu, Chrystyane, 2017. "Airline fuel usage and carbon emissions: Determining factors," Journal of Air Transport Management, Elsevier, vol. 62(C), pages 10-17.
    19. Chacartegui, R. & Sánchez, D. & Muñoz de Escalona, J.M. & Muñoz, A. & Sánchez, T., 2013. "Gas and steam combined cycles for low calorific syngas fuels utilisation," Applied Energy, Elsevier, vol. 101(C), pages 81-92.
    20. El in Ayka Alp, 2016. "Energy Consumption and Economic Growth in OECD Countries," International Journal of Energy Economics and Policy, Econjournals, vol. 6(4), pages 753-759.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Sylvia Mardiana & Ferdinand Saragih & Martani Huseini, 2020. "Forecasting Gasoline Demand in Indonesia Using Time Series," International Journal of Energy Economics and Policy, Econjournals, vol. 10(6), pages 132-145.
    2. Lidiya Guryanova & Olena Bolotova & Vitalii Gvozdytskyi & Sergienko Olena, 2020. "Long-term financial sustainability: An evaluation methodology with threats considerations," RIVISTA DI STUDI SULLA SOSTENIBILITA', FrancoAngeli Editore, vol. 0(1), pages 47-69.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Csereklyei, Zsuzsanna & Anantharama, Nandini & Kallies, Anne, 2021. "Electricity market transitions in Australia: Evidence using model-based clustering," Energy Economics, Elsevier, vol. 103(C).
    2. Fouquet, Roger, 2016. "Lessons from energy history for climate policy: technological change, demand and economic development," LSE Research Online Documents on Economics 67785, London School of Economics and Political Science, LSE Library.
    3. Das, Debojyoti & Bhatia, Vaneet & Kumar, Surya Bhushan & Basu, Sankarshan, 2022. "Do precious metals hedge crude oil volatility jumps?," International Review of Financial Analysis, Elsevier, vol. 83(C).
    4. Rohan Best & Paul J. Burke, 2020. "Energy mix persistence and the effect of carbon pricing," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 64(3), pages 555-574, July.
    5. Fankhauser, Samuel & Jotzo, Frank, 2017. "Economic growth and development with low-carbon energy," LSE Research Online Documents on Economics 86850, London School of Economics and Political Science, LSE Library.
    6. Marcin Wójcik & Pamela Jeziorska-Biel, 2023. "Geographies of Energy: Key Issues and Challenges towards Spatial Justice Concepts," Energies, MDPI, vol. 16(2), pages 1-9, January.
    7. Stančin, H. & Mikulčić, H. & Wang, X. & Duić, N., 2020. "A review on alternative fuels in future energy system," Renewable and Sustainable Energy Reviews, Elsevier, vol. 128(C).
    8. Brown, Marilyn A. & Li, Yufei & Soni, Anmol, 2020. "Are all jobs created equal? Regional employment impacts of a U.S. carbon tax," Applied Energy, Elsevier, vol. 262(C).
    9. Muhammad Shahbaz & Syed Jawad Hussain Shahzad & Mantu Kumar Mahalik & Perry Sadorsky, 2018. "How strong is the causal relationship between globalization and energy consumption in developed economies? A country-specific time-series and panel analysis," Applied Economics, Taylor & Francis Journals, vol. 50(13), pages 1479-1494, March.
    10. Mayeres, Inge & Proost, Stef & Delhaye, Eef & Novelli, Philippe & Conijn, Sjaak & Gómez-Jiménez, Inmaculada & Rivas-Brousse, Daniel, 2023. "Climate ambitions for European aviation: Where can sustainable aviation fuels bring us?," Energy Policy, Elsevier, vol. 175(C).
    11. Burke, Paul J. & Yang, Hewen, 2016. "The price and income elasticities of natural gas demand: International evidence," Energy Economics, Elsevier, vol. 59(C), pages 466-474.
    12. Vikniswari Vija Kumaran & Siti Nurul Munawwarah & Mohd Khairi Ismail, 2021. "Sustainability in ASEAN: The Roles of Financial Development towards Climate Change," Asian Journal of Economics and Empirical Research, Asian Online Journal Publishing Group, vol. 8(1), pages 1-9.
    13. Mukhtarov, Shahriyar & Yüksel, Serhat & Dinçer, Hasan, 2022. "The impact of financial development on renewable energy consumption: Evidence from Turkey," Renewable Energy, Elsevier, vol. 187(C), pages 169-176.
    14. Skroufouta, S. & Baltas, E., 2021. "Investigation of hybrid renewable energy system (HRES) for covering energy and water needs on the Island of Karpathos in Aegean Sea," Renewable Energy, Elsevier, vol. 173(C), pages 141-150.
    15. Solomon P. Nathaniel & Festus V. Bekun, 2020. "Electricity Consumption, Urbanization and Economic Growth in Nigeria: New Insights from Combined Cointegration amidst Structural Breaks," Research Africa Network Working Papers 20/013, Research Africa Network (RAN).
    16. Hlongwane, Nyiko Worship, 2022. "The relationship between oil prices and exchange rates in South Africa," MPRA Paper 113209, University Library of Munich, Germany.
    17. Li, Aitong & Xu, Yuan & Shiroyama, Hideaki, 2019. "Solar lobby and energy transition in Japan," Energy Policy, Elsevier, vol. 134(C).
    18. Yoosoon Chang & Yongok Choi & Chang Sik Kim & J. Isaac Miller & Joon Y. Park, 2024. "Common Trends and Country Specific Heterogeneities in Long-Run World Energy Consumption," CAEPR Working Papers 2024-001 Classification-1, Center for Applied Economics and Policy Research, Department of Economics, Indiana University Bloomington.
    19. Mohammad Al-Shboul & Aktham Maghyereh, 2023. "Did real economic uncertainty drive risk connectedness in the oil–stock nexus during the COVID-19 outbreak? A partial wavelet coherence analysis," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 12(1), pages 1-23, December.
    20. Kander, Astrid & Warde, Paul & Teives Henriques, Sofia & Nielsen, Hana & Kulionis, Viktoras & Hagen, Sven, 2017. "International Trade and Energy Intensity During European Industrialization, 1870–1935," Ecological Economics, Elsevier, vol. 139(C), pages 33-44.

    More about this item

    Keywords

    energy market; fuel consumption; vector autoregressive model.;
    All these keywords.

    JEL classification:

    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eco:journ2:2018-05-8. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Ilhan Ozturk (email available below). General contact details of provider: http://www.econjournals.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.