How China’s Growth Imposes Costs on the Rest of the World

It has long been assumed that China’s economic growth creates upward pressure on the price of oil, but to what extent? A team led by John Beirne of the European Central Bank estimates that the impact was about 1% of the global oil price in 2011 and will rise to 3% to 4% by 2030. If China’s economy continues to expand at 8% or more, by 2030 its growth will cost the world more than $180 billion in higher oil prices, the researchers say.