Nexuses between crude oil imports, renewable energy, transport services, and technological innovation: a fresh insight from Germany

Abstract

This research attempts to model the association of crude oil imports with several macroeconomic factors such as renewable energy, transport services, trade, industrial value-added, and patents, using Germany’s annual data covering the period of 1990–2020. Employing the Autoregressive Distributed Lag model, this study finds a significant co-integration relationship among targeted variables. Moreover, this study provides empirical evidence on the influence of given macroeconomic factors in determining crude oil imports of Germany. Results reveal that transport services and industrial value-added positively and significantly influence crude oil imports in the long and short run. Similarly, trade is discovered to have a significant positive impact on oil imports only in the long run. In contrast, findings reveal a significant negative association of renewable energy with crude oil imports. Hence, this research implies that the transportation sector and industrial production strongly depend on crude oil consumption. At the same time, promoting renewable energy in these segments could significantly help economies control crude oil demand and achieve sustainability by reducing the economic burden and protecting the environment.

Drivers of the European Union’s Environmental Performance

“…Furthermore, Haider et al (2021) emphasize the impact of economic growth on intensifying environmental degradation, but sustainable resource consumption could be achieved by good governance and political stability. Also, adopting renewable energy in strategical measures for transportation and production sectors could enhance resource efficiency (Yu et al, 2022). So, the challenges posed by the interactions between the economy, social structure, and environment, such as pollution, lack of energy, food and water, degradation of natural ecosystems, and depletion of energy resources intensify ultimately affect the development of society and, perhaps, in the long run, the survival of humankind.…”

“…Looking at microeconomic analyses, it seems that progress was obtained in environmental performance through digital technology and institutional regulations for the environment (Khan H. et al, 2021). On other hand, macroeconomic analyses suggest that a healthy ecosystem could generate good environmental services for society (Lai and Chen, 2020), government effectiveness positively impact energy consumption (Haider et al, 2021), the use of renewable energy improves sustainability by controlling oil consumption (Yu et al, 2022), and foreign direct investments should be used in sustainable businesses only for enhancing sustainability (Khan et al, 2022). However, there is still a gap in regarding the link between indices and indicators that look at different environmental, social, or economic features.…”

Was the European oil industry prepared for the current global crisis?

“…In the context of the challenge of sustainable development (Yu et al 2022a , b ) analyse energy consumption in Organization for Economic Cooperation and Development countries. The authors apply nonlinear methods and point out the Jevons' paradox in these countries.…”

“…An interesting approach is the one which analyses the correlation between crude oil imports, renewable energy, transport services, trade, industrial value-added, and patents (Yu et al 2022a , b ). The analysis covers the German economy from 1990 to 2020.…”

Post-Oil Period in Azerbaijan: Economic Transformations, Anti-Inflation Policy and Innovations Management

“…In this context, the transition to producing environmentally-friendly vehicles is also considered in response to rising prices for oil and petroleum products (He et al, 2022). In addition, it is determined that the demand for crude oil depends significantly on the volume of the industry, while economic transformations associated with the growing role of innovative technological industries reduce international trade in crude oil and, accordingly, determine the need for transformation in oil countries ( Yu et al, 2022).…”