Publication:
Global Footprints of U.S. Energy Innovations: Energy Efficiency and the Shale Revolution

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dc.contributor.authorZahid, Hamza
dc.date.accessioned2023-04-17T16:03:07Z
dc.date.available2023-04-17T16:03:07Z
dc.date.issued2023-04-17
dc.description.abstractThis paper studies the effects of U.S. energy shocks on international economic activity and the world oil market. The analysis uses a set of factor-augmented vector autoregressions to identify and compare the impact of unanticipated changes in U.S. energy efficiency and U.S. oil supply over 1980Q1–2019Q4. The identification strategy relies on the fact that positive shocks in both cases decrease the real price of oil and increase global gross domestic product (GDP), while generating opposite implications for world oil production and consumption. On average, U.S. energy efficiency shocks have a larger impact on the real price of oil and global GDP than U.S. oil supply shocks. Historical decompositions suggest that in 2010–19, U.S. oil supply shocks increased GDP by 2 percent, while (negative) energy efficiency shocks decreased global GDP by 1.3 percent. The latter effect dominated during the second shale boom in 2017–19. Considerable heterogeneity exists in cross-country responses, with favorable implications for GDP in advanced and emerging market oil importers and adverse implications for oil exporters. The empirical findings are interpreted through the lens of a dynamic general equilibrium multi-country model that features a global oil market and where key parameters are estimated using indirect inference.en
dc.identifierhttp://documents.worldbank.org/curated/en/099343004112324291/IDU006c0d7570ffbe047420bc500990811843794
dc.identifier.doi10.1596/1813-9450-10402
dc.identifier.urihttps://openknowledge.worldbank.org/handle/10986/39699
dc.languageEnglish
dc.language.isoen
dc.publisherWorld Bank, Washington, DC
dc.relation.ispartofseriesPolicy Research Working Papers; 10402
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urips://creativecommons.org/licenses/by/3.0/igo/
dc.rights.urips://creativecommons.org/licenses/by/3.0/igo/
dc.rights.urips://creativecommons.org/licenses/by/3.0/igo/
dc.subjectENERGY EFFICIENCY
dc.subjectSHALE OIL
dc.subjectENERGY TRANSITION
dc.subjectGLOBAL BUSINESS CYCLES
dc.subjectDYNAMIC FACTOR MODELS
dc.subjectFAVAR
dc.subjectSTRUCTURAL ANALYSIS
dc.subjectINDIRECT INFERENCE
dc.titleGlobal Footprints of U.S. Energy Innovationsen
dc.title.subtitleEnergy Efficiency and the Shale Revolutionen
dc.typeWorking Paper
dspace.entity.typePublication
okr.crossref.titleGlobal Footprints of U.S. Energy Innovations: Energy Efficiency and the Shale Revolution
okr.date.disclosure2023-04-11
okr.date.lastmodified2023-04-11T00:00:00Zen
okr.doctypePolicy Research Working Paper
okr.doctypePublications & Research
okr.docurlhttp://documents.worldbank.org/curated/en/099343004112324291/IDU006c0d7570ffbe047420bc500990811843794
okr.guid099343004112324291
okr.identifier.docmidIDU-06c0d757-ffbe-4742-bc50-990811843794
okr.identifier.doi10.1596/1813-9450-10402
okr.identifier.externaldocumentum34039383
okr.identifier.internaldocumentum34039383
okr.identifier.reportWPS10402
okr.import.id444
okr.importedtrueen
okr.language.supporteden
okr.pdfurlhttp://documents.worldbank.org/curated/en/099343004112324291/pdf/IDU006c0d7570ffbe047420bc500990811843794.pdfen
okr.region.countryUnited States
okr.topicEnergy::Energy Resources Development
okr.topicEnergy::Fuels
okr.topicEnergy::Renewable Energy
okr.topicEnergy::Energy Consumption
okr.unitProspects Group (DECPG)
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