Global sourcing in oil markets

• 成果类型: Article
• 署名作者: Farrokhi, Farid
• 署名单位: Purdue University System; Purdue University
• 刊物名称: JOURNAL OF INTERNATIONAL ECONOMICS
• ISSN/ISSBN: 0022-1996
• DOI: 10.1016/j.jinteco.2020.103323
• 发表日期: 2020
• 关键词: Global sourcing; Crude oil markets; Refining industry; Maximum Likelihood; general equilibrium

摘要

This paper develops a multi-country general equilibriummodel that incorporates crude oil global sourcing by refineries and refined oil demand by downstream industries that are connected through international trade and input-output linkages. I exploit detailed data on crude oil imports of US refineries, and derive a new procedure that allows for an all-in-one estimation of which suppliers refineries select and how much they buy from each. Using the estimates to evaluate counterfactual policies, I find: (i) A boom in crude oil production of a source changes the relative prices of crude oil across countriesmodestlywhich I interpret as the extent towhich the behavior of crude oil markets deviates froman integrated globalmarket. (ii) Lifting the ban on U.S. crude oil exports creates notable distributional impact across American crude oil producers and refineries. (iii) Due to the importance of oil trade and consumption, gains from trade are larger compared to the existing benchmarks. (C) 2020 Elsevier B.V. All rights reserved.