IDEAS home Printed from https://ideas.repec.org/a/hde/epregl/v74y2023i1p132-157.html
   My bibliography  Save this article

Modeling World Natural Gas And Crude Oil Trade Networks

Author

Listed:
  • Masoud Shirazi

    (Faculty of Economics, University of Coimbra, Coimbra, Portugal & Cyprus Institute of Marketing, Nicosia, Cyprus)

  • Jurica Šimurina

    (Faculty of Economics and Business Zagreb, University of Zagreb)

Abstract

World energy security is sensitive to stable energy environment and geopolitics that depend on inter-regional energy trade strategies. However, this study uses the network connectedness measures of Diebold-Yilmaz to find the trade cooperation/competition preference for non-renewables’ security development. To this end, the dynamic asymmetries of weighted spillover effects of natural gas and crude oil trade flow components are analyzed throughout world trade networks before- and after the sharp fall in crude oil prices. The results exhibit that natural gas and crude oil trade networks experience asymmetric- and time-varying behavior in response to transitoryvs. permanent components as well as positive- vs. negative shocks pre-and post- sharp fall in crude oil prices. Specifically, the natural gas and crude oil trade networks show a lesser degree of integration after 2014. Moreover, the natural gas trade network represents more (less) weighted sensitivity to short-term fluctuations (long-term trend) than the crude oil trade network pre-and post- 2014. As the other comparative result, a higher (lower) degree of integration is detected in the crude oil trade network in response to the positive (negative) shocks compared to the natural gas trade network pre-and post- 2014. Therefore, a lower level of cooperation preference among regions is proposed in the natural gas and crude oil trade networks in response to a sharp fall in crude oil prices. Also, decisions about energy conservation, environmental protection, and protection of strategic resources can affect a region’s natural gas and crude oil supply and demand security.

Suggested Citation

  • Masoud Shirazi & Jurica Šimurina, 2023. "Modeling World Natural Gas And Crude Oil Trade Networks," Ekonomski pregled, Hrvatsko društvo ekonomista (Croatian Society of Economists), vol. 74(1), pages 132-157.
    • Handle: RePEc:hde:epregl:v:74:y:2023:i:1:p:132-157
    DOI: 10.32910/ep.74.1.6
    as

    Download full text from publisher

    File URL: https://doi.org/10.32910/ep.74.1.6
    Download Restriction: no
    File URL: https://libkey.io/10.32910/ep.74.1.6?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    More about this item

    Keywords

    Energy Trade Strategy; Asymmetric Spillover Effects; Dynamic Network Connectedness Measures;
    All these keywords.

    JEL classification:

    • Q37 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Issues in International Trade
    • Q47 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy Forecasting
    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty

    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:hde:epregl:v:74:y:2023:i:1:p:132-157. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Josip Tica (email available below). General contact details of provider: https://edirc.repec.org/data/hdeeeea.html .

    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.