Abstract
Globally, CO2 emissions have increased over the last decades. This paper aims to answer the question, “How have oil prices impacted CO2 emissions?” which is relevant for policy-making regarding emission reduction, as it can explain how effective economic instruments are in reducing CO2 emissions from oil. This study investigates the intricate relationship between crude oil prices, oil consumption, and CO2 emissions on a global scale, with a specific focus on India, over a ten-year period from 2014-2024. Utilizing secondary data the research employs descriptive and analytical methodologies to assess long-term trends and correlations. Key findings reveal a moderate positive correlation between Brent crude prices and Oil Consumption both globally and in India, contradicting traditional economic theory that suggests rising prices should lead to reduced demand. The study highlights the self-correcting nature of consumption patterns, as evidenced by negative lagged coefficients, and identifies the long-term impacts of crude oil prices on consumption dynamics. Data analysis tools, including correlation analysis, the ARDL model, Chi-square analysis, and graphical analysis, were utilized to explore relationships and trends. The analysis shows that higher oil prices can contribute to lower CO2 emissions across various sectors (Transportation, Industry etc.), highlighting the potential for price mechanisms to influence energy demand and environmental outcomes. This research emphasizes the need for coordinated policy actions that promote sustainable energy transitions, particularly in emerging economies like India. Overall, the findings provide valuable insights for policymakers and stakeholders aiming to navigate the complexities of global energy consumption and its environmental implications.
Presenters
Sujata ParwaniAssociate Professor, Management, International Institute of Professional Studies, Andaman and Nicobar Islands, India
Details
Presentation Type
Paper Presentation in a Themed Session
Theme
Economic, Social, and Cultural Context
KEYWORDS
OIL PRICES, CO2 EMISSION, CONSUMPTION OF CRUDE
