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http://dx.doi.org/10.5855/ENERGY.2016.25.4.037

A Comparative Analysis on the Role of the Oil Refinery Industry in the Korean and Japanese National Economy  

Jin, Se-Jun (Department of Energy Policy, Graduate School of Energy & Environment, Seoul National University of Science & Technology)
Ahn, So-Yeon (Department of Energy Policy, Graduate School of Energy & Environment, Seoul National University of Science & Technology)
Yoo, Seung-Hoon (Department of Energy Policy, Graduate School of Energy & Environment, Seoul National University of Science & Technology)
Publication Information
Journal of Energy Engineering / v.25, no.4, 2016 , pp. 37-52 More about this Journal
Abstract
This study attempts to compare the role of the oil refinery industry in the Korean and Japanese national economy using an inter-industry analysis. First of all, the study conducts a comparative analysis on production-inducing effects and value-added creation effects of the oil refinery industry based on demand-driven model. Moreover, we investigate the supply shortage effects and sectoral pervasive effects of price change by using supply-driven model and Leontief price model, respectively. These analyses have been done by specifying the oil refinery industry as not endogenous but exogenous. The results show that1 won of production or investment in the oil refinery industry induces 0.2620 won and 0.6537 won of production in other industries of Korea and Japan, respectively. The former is less than the latter. It also creates 0.0946 won and 0.0536 won of value-added in other industries of Korea and Japan, respectively. The first is larger than the second. The effects of 1 won of supply shortage in oil refinery industry on other industries are computed to be 0.9657 won and 1.4476 won for Korea and Japan, respectively, and thus the former is smaller than the latter. Finally, the pervasive effects of 10% price change in oil refinery industry are estimated to be 0.3819% and 0.3409% in Korea and Japan, respectively, and thus the first is larger than the second.
Keywords
oil refinery industry; inter-industry analysis; demand-driven model; supply-driven model; Leontief price model;
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