Oil price fluctuations and oil consuming sectors: An empirical analysis of Japan

Taghizadeh–Hesary, Farhad; Rasoulinezhad, Ehsan; Kobayashi, Yoshikazu

doi:10.3280/efe2016-002003

Cited by 19 publications

(10 citation statements)

References 10 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…In addition, the researcher found that The construction sector depends on the fluctuations in oil prices. Taghizadeh et al (2015) the impact of volatility in oil prices on economic sectors in Japan. Using employ a VAR model by using quarterly data from Q1: 1990 until Q1: 2014.…”

Section: Literature Review On Methodologymentioning

confidence: 99%

Untitled

2016

Energy Economics Letters

View full text Add to dashboard Cite

This paper aims to examine the effects of oil price shocks on the economical development in Libya during the period 1968-2016, using Contribution/ OriginalityThis study contributes in the existing literature by analyzing the effects of oil price changes on the economical development of Libya. This study also departs from previous studies relating Libyan economy and oil price changes by looking at the positive and negative impact of oil price changes on economical development.

show abstract

Section: Literature Review On Methodologymentioning

confidence: 99%

Untitled

2016

Energy Economics Letters

View full text Add to dashboard Cite

show abstract

“…However, the shift in AD in the Japanese case is less for several reasons, two of the most important being the aging population and more efficient automobiles that reduced the consumption and elasticity of oil and petroleum products with respect to prices. Taghizadeh-Hesary, Rasolinezhad, and Kobayashi (2015b) found that among Japanese oil consuming sectors, the commercial and industrial sectors show a significant response to oil price fluctuations, while the residential sector does not. They also found that in the wake of the Fukushima nuclear disaster in 2011, almost all economic sectors had a lower sensitivity to oil price fluctuations because Japan's dependency on oil increased.…”

Section: Lower Oil Prices and The Negative Interest Rate Policy Of Thmentioning

confidence: 99%

The Effectiveness of Japan's Negative Interest Rate Policy

2017

View full text Add to dashboard Cite

Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in Asian Development Bank InstituteThe Working Paper series is a continuation of the formerly named Discussion Paper series; the numbering of the papers continued without interruption or change. ADBI's working papers reflect initial ideas on a topic and are posted online for discussion. ADBI encourages readers to post their comments on the main page for each working paper (given in the citation below). Some working papers may develop into other forms of publication. The views expressed in this paper are the views of the author and do not necessarily reflect the views or policies of ADBI, ADB, its Board of Directors, or the governments they represent. ADBI does not guarantee the accuracy of the data included in this paper and accepts no responsibility for any consequences of their use. Terminology used may not necessarily be consistent with ADB official terms.Working papers are subject to formal revision and correction before they are finalized and considered published. AbstractIn April 2013, the Bank of Japan (BOJ) introduced an inflation target of 2% with the aim of overcoming deflation and achieving sustainable economic growth. But due to lower international oil prices, it was unable to achieve this target and was forced to take further measures. Hence, in February 2016, the BOJ adopted a negative interest rate policy by massively increasing the money supply through purchasing long-term Japanese government bonds (JGB). The BOJ had previously purchased short-term government bonds mainly, a policy that flattened the yield curve of JGBs. On the one hand, banks reduced the numbers of government bonds because short-term bond yields had become negative, and even the interest rates of long-term government bonds up to 15 years became negative. On the other hand, bank loans to the corporate sector did not increase due to the Japanese economy's vertical investment-saving (IS) curve. This paper firstly explains why, in the view of the authors, the BOJ has to reduce its 2% inflation target in the present low oil price era. Secondly, it argues that Japan cannot make a sustainable recovery from its long-lasting recession and tackle its long-standing deflation problem by means of its current monetary policy and its negative interest rate policy in particular. It is of key importance to make the IS curve downward sloping rather than vertical. That means the rate of return on investment must be positive and companies must be willing to invest i...

show abstract

“…In other words, a number of studies considered bivariate models (Taghizadeh-Hesary et al 2015), which might be biased due to the omission of other relevant variables that can have an influence on the effect oil price shocks have on the oil consumption of Japan's sectors. Thus, to avoid this problem, we investigated the effects of oil price fluctuations on oil-consuming sectors in Japan separately within the multivariate framework by including several control variables.…”

Section: Theoretical Remarksmentioning

confidence: 99%

“…In the wake of the Fukushima nuclear incident, oil is still the main energy carrier in Japan, although the share of oil consumption in total energy consumption has reduced from about 80% in the 1970s to 43% in 2011. Japan consumed over 4.7 million barrels per day of oil in 2012 (Taghizadeh-Hesary et al 2015).…”

Section: Overview Of Energy Consumption In Japanmentioning

confidence: 99%

“…In recent years, the sharp increase in oil prices that began in 2001, the sharp decline that in 2008 followed the subprime mortgage crisis, and the stunning oil price reduction in 2014-2015 have renewed interest in the effects of oil prices on the macro economy. Since crude oil has been perceived as a vital energy commodity fueling world economy, several studies (see, inter alia, Rasoulinezhad 2016;Taghizadeh-Hesary et al 2015Taghizadeh-Hesary and Naoyuki 2016;Yoshino and Taghizadeh-Hesary 2015a;and Yoshino and Taghizadeh-Hesary 2015) have evaluated impacts of oil price fluctuations on various macroeconomic indicators.…”

Section: Introductionmentioning

confidence: 99%

See 1 more Smart Citation

Impact of the Fukushima Nuclear Disaster on the Oil-Consuming Sectors of Japan

Taghizadeh–Hesary

Yoshino

Rasoulinezhad

2017

Journal of Comparative Asian Development

Self Cite

View full text Add to dashboard Cite

Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in Asian Development Bank InstituteThe Working Paper series is a continuation of the formerly named Discussion Paper series; the numbering of the papers continued without interruption or change. ADBI's working papers reflect initial ideas on a topic and are posted online for discussion. ADBI encourages readers to post their comments on the main page for each working paper (given in the citation below). Some working papers may develop into other forms of publication.ADB recognizes China as the "People's Republic of China" and South Korea as the "Republic of Korea."Suggested citation:Taghizadeh-Hesary, F., N. Yoshino, and E. Rasoulinezhad. 2017. Impact of Fukushima Nuclear Disaster on Oil-Consuming Sectors of Japan. ADBI Working Paper 659. Tokyo: Asian Development Bank Institute. Available: https://www.adb.org/publications/impactfukushima-nuclear-disaster-oil-consuming-sectors-japan Please contact the authors for information about this paper. Email: farhadth@gmail.comFarhad Taghizadeh-Hesary is assistant professor of Economics at Keio University, Tokyo, Japan, and visiting professor at the Graduate School of Economics, University of Tokyo. Naoyuki Yoshino is dean of the Asian Development Bank Institute and professor emeritus at Keio University, Japan. Ehsan Rasoulinezhad is a researcher of economics at Petersburg State University.The views expressed in this paper are the views of the author and do not necessarily reflect the views or policies of ADBI, ADB, its Board of Directors, or the governments they represent. ADBI does not guarantee the accuracy of the data included in this paper and accepts no responsibility for any consequences of their use. Terminology used may not necessarily be consistent with ADB official terms.Working papers are subject to formal revision and correction before they are finalized and considered published.Asian Development Bank Institute Kasumigaseki Building, 8th Floor 3-2-5 Kasumigaseki, Chiyoda-ku Tokyo 100-6008, JapanTel:+81-3-3593-5500 Fax:+81-3-3593-5571 URL:www.adbi.org E-mail: info@adbi.org AbstractThe Fukushima Daiichi nuclear disaster was an accident at the Fukushima I Nuclear Power Plant in Fukushima, Japan, which resulted primarily from the tsunami following the Tohoku earthquake on 11 March 2011, and which led to year-long nuclear shutdown in the country. During the shutdown, Japan substituted fossil fuels for nuclear power and became more dependent on import and consumption of fossil fuels i...

show abstract

Oil price fluctuations and oil consuming sectors: An empirical analysis of Japan

Cited by 19 publications

References 10 publications

Untitled

Untitled

The Effectiveness of Japan's Negative Interest Rate Policy

Impact of the Fukushima Nuclear Disaster on the Oil-Consuming Sectors of Japan

Contact Info

Product

Resources

About