Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/289844 
Year of Publication: 
2023
Series/Report no.: 
Working Paper No. 2311
Publisher: 
Johannes Kepler University of Linz, Department of Economics, Linz
Abstract: 
Motivated by the European Union's debate on sanctioning crude oil imports from Russia, we estimate the elasticity of substitution between different crude oil types. Using European data on country-level crude oil imports by field of origin, we argue that crude oil is not a homogenous good and that the relevant substitutability for analyzing the impact of trade sanctions must account for the quality of different oil types in terms of their API gravity and sulfur content. Our results suggest that, by neglecting these differences in quality, standard estimates significantly underestimate the production disruptions in crude oil refining resulting from sanctions.
Document Type: 
Working Paper

Files in This Item:
File
Size
517.23 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.