Electric Cars and Oil Prices

47 Pages Posted: 15 Sep 2009 Last revised: 27 Oct 2012

See all articles by Jose Azar

Jose Azar

Princeton University - Department of Economics

Date Written: September 9, 2009

Abstract

This paper studies the joint dynamics of oil prices and interest in electric cars, measured as the volume of Google searches for related phrases. The dominant view in the literature is that the main determinants of oil prices are macroeconomic conditions and supply disruptions. I show evidence that public interest in electric cars is also a significant driver of changes in oil prices. In fact, the analysis suggests that interest in electric cars is at least as important as macroeconomic developments. Changes in interest in electric cars can explain a significant part of the rise and fall of oil prices during 2008.

Keywords: Electric Car, Electric Vehicle, Oil Prices, Crude Oil, Google Trends, Time Series Analysis, Energy and Climate Economics

JEL Classification: Q4, Q5, G1

Suggested Citation

Azar, Jose, Electric Cars and Oil Prices (September 9, 2009). Available at SSRN: https://ssrn.com/abstract=1474023 or http://dx.doi.org/10.2139/ssrn.1474023

Jose Azar (Contact Author)

Princeton University - Department of Economics ( email )

Princeton, NJ 08544-1021
United States

HOME PAGE: http://www.princeton.edu/~jazar/

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