Relationship between Oil Prices, Oil Consumption and Financial Development in Developed Countries

Authors

  • Murat Nurgabylov International Taraz University named after Sherkhan Murtaza, Taraz, Kazakhstan
  • Saltanat Yerzhanova Karaganda University named after E.A.Buketova, Karaganda, Kazakhstan
  • Akmaral Sarsenova International Taraz University named after Sherkhan Murtaza, Taraz, Kazakhstan
  • Saule Kaltayeva International University of Tourism and Hospitality, Turkestan, Kazakhstan
  • Raikhan Tazhibayeva International University of Tourism and Hospitality, Turkestan, Kazakhstan
  • Assel Baimbetova L.N. Gumilyov Eurasian National University, Astana, Kazakhstan

DOI:

https://doi.org/10.32479/ijeep.19954

Keywords:

Oil Price, Financial Development, Energy Consumption, OECD Countries, Panel Data Analysis

Abstract

The aim of this study is to analyze the relationships between financial development, oil prices, and energy consumption in OECD countries over the period 2000–2023. To identify long-run relationships, the Pedroni panel cointegration test is employed, while panel causality analysis is conducted to determine the direction of these relationships. Furthermore, to enhance the reliability of the cointegration results, analyses are carried out using FMOLS and DOLS estimators. The findings reveal a unidirectional causality running from financial development to energy consumption, supporting the conservation hypothesis, which posits that the financial system plays a decisive role in determining energy consumption. Additionally, the results indicate a unidirectional causality from oil prices to energy consumption. The consistency in the direction of the regression coefficients obtained from both FMOLS and DOLS methods confirms the robustness of the results.

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Published

2025-08-20

How to Cite

Nurgabylov, M., Yerzhanova, S., Sarsenova, A., Kaltayeva, S., Tazhibayeva, R., & Baimbetova, A. (2025). Relationship between Oil Prices, Oil Consumption and Financial Development in Developed Countries. International Journal of Energy Economics and Policy, 15(5), 65–70. https://doi.org/10.32479/ijeep.19954

Issue

Vol. 15 No. 5 (2025)

Section

Articles

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