Examination of rising oil prices on the logistic network and transportation greenhouse gas emission in the United States

Abstract

Due to the logistic network and the rising price of crude oil, global crude-oil transportation is a substantial contributor to greenhouse gas (GHG). The primary objective of this study is to model greenhouse gas emissions with rising oil prices and crude oil transportation based on a logistic network. The secondary data was extracted from World Bank and US Energy Information Administration (EIA) respectively from 1990 to 2020. OLS regression model was applied and the result shows that there is a significant linear relationship between greenhouse gas emission, oil prices, and energy use (proxy to Crude oil transportation based on the logistic network) while controlling for Oil rents. More so, the coefficient estimates of the oil prices and energy use have a positive significant impact on greenhouse gas emissions, indicating that the rising oil prices and energy use will contribute to higher greenhouse gas emissions in the United States. Consequently, the use of energy and rising oil prices should be adequately regulated from time to time in line with the energy policy act to reduce greenhouse gas emissions to achieve a healthy and sustainable environment.