Crude oil usage in Organization for Economic Co-operation and Development (OECD) countries has been significantly higher since the early 1970s. Hence, oil can be considered one of the driving forces of the OECD economies since oil prices have frequently fluctuated over time, creating adverse economic and social impacts. The study confirms that oil price has a mixed impact on economic growth. Increases in oil price positively affect economic growth through interest rates while negatively affecting economic growth through the exchange rate, government expenditure, and investment. Since the total negative effect of oil price on economic growth outnumbers the positive outcome, the net impact of an oil price hike on economic growth is negative. The study strongly recommends implementing appropriate policies to reduce oil price fluctuations and use country-specific renewable energy.  

N. P. Ravindra Deyshappriya, l. A. D. D. W. Rukshan, N. P. Dammika Padmakanthi 

Sustainability

Abstract:- https://doi.org/10.3390/su15064888