%0 Journal Article
%T THE LONG-RUN AND SHORT-RUN EFFECTS OF CRUDE OIL PRICE ON METHANOL MARKET IN IRAN
%A Akbar Komijani
%A Nadiya Gandali Alikhani
%A Esmaeil Naderi
%J International Journal of Energy Economics and Policy
%D 2013
%I EconJournals
%X Substituting crude oil exports with value-added petrochemical products is one of the main strategies for policy makers in oil-driven economies to isolating the real sectors of economy from oil price volatility. This policy inclination has led to a body of literature in energy economics in recent decades. As a case study, this paper investigates the short-run and long-run relationship between Iran¡¯s oil price and methanol price which is one of the most important non-oil exports of the oil-exporting country. To do so, the weekly data from 18 Jan. 2009 to 18 Sep. 2011 in a VECM framework is applied. The results show that in the long-run, oil price hikes leads to proportional increase in methanol price while in the short-run, this impact is not significant.
%K Crude Oil
%K Methanol
%K VECM Model
%U http://www.econjournals.com/index.php/ijeep/article/view/344/188