Exploring the Effects of Oil and Gas Prices on Industrial Production in Colombia: A Quantile Regression Analysis

Authors

  • Juan Manuel Candelo-Viafara PhD in Management, Universidad del Valle, Colombia,
  • Andres Oviedo-Gomez PhD Candidate in Engineering, Universidad del Valle, Colombia,
  • Maria Del Pilar Rivera-Diaz Master’s in occupational risk Prevention, University of Málaga, Spain.

DOI:

https://doi.org/10.32479/ijeep.14607

Keywords:

Oil Prices, Gas Prices, Industrial Production, GDP, Energy, Quantile Regression

Abstract

This study examines the impact of oil and gas prices on industrial production in Colombia between 1997 and 2022 using the quantile regression methodology (QR) to evaluate seasonality and nonlinear effects on the distribution of the industrial sector, the findings indicate that when industrial production is at low levels, fluctuations in gas prices have minimal impact. Conversely, when industrial production is at medium levels, gas prices have a significant negative impact, while at high levels (above the sixth decile), gas prices have a negative but not significant impact. On the other hand, oil prices generate positive and significant impacts at medium and high production levels. The study concludes that increasing gas production in the country would lead to a reduction in its price, decrease costs, and increase national production, additionally, gas production can be a viable element in energy transition, as it strengthens sectors of the economy other than oil.

Downloads

Download data is not yet available.

Downloads

Published

2023-11-10

How to Cite

Candelo-Viafara, J. M., Oviedo-Gomez, A., & Rivera-Diaz, M. D. P. (2023). Exploring the Effects of Oil and Gas Prices on Industrial Production in Colombia: A Quantile Regression Analysis. International Journal of Energy Economics and Policy, 13(6), 364–369. https://doi.org/10.32479/ijeep.14607

Issue

Section

Articles