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

Abstract

AbstractThis 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.