In this project, I analysed the relation between gas price and urbanisation rate of many countries around the world.
This project was done by group, but I am responsible for coding and analyzing.
This project was instructed by Prof. Laurie CIARAMELLA, Telecom Paris.
Please contact Mr. Nghia NGUYEN DANH - nghia.nguyendanh@telecom-paris.fr for more information.
Oil has been fuelling the economic growth of the XXth century, but is now largely looked down upon because of the consequence its use has over global warming. Yet, oil is still pumped in vast quantities, and it is still referred to as the black gold. Its actual price, once refined, varies a lot from one country to another, meaning that people all over the globe don’t have the same ability to buy petrol, and therefore to drive their car.
Indeed, the cheaper the petrol, the cheaper the cost of transportation by car. In Venezuela on the one hand, a liter of gasoline costs 0.020 U.S. Dollar, while on the other hand, in Hong Kong, this same liter costs 2.442 U.S. Dollars. These were the two extremal prices on March, 29th 2021, yet they shed light on the considerable disparity that exists between countries at a worldwide scale.
Another thing that tends to vary drastically from a country to another is the part of the population living in urban areas. The human population worldwide has been steeply growing since the dawn of humanity, and since 2007, more than half of the world population is living in cities. It is predicted that by 2050 about 64% of the developing world and 86% of the developed world will be urbanized.
Therefore, urbanization is at the core of the social development of the upcoming years. It is relatively obvious that people living in more sparsely populated areas might tend to drive around the lot more than the ones living in urban areas, where one can find anything he might need to live in a 10-kilometer radius. This is the reason why in our project we wanted to investigate the possible correlation existing between the oil price in a country, and the urbanization in the same country.
In order to conduct our project, we first had to find suitable datasets, which wasn’t as easy as expected, yet we ended up finding enough data to lead our study. The countries we focused on are the United States of America, Canada, the United Kingdom and France. Although all these countries are relatively close when it comes to economic development, they were the ones with the most data available, and we believe that a panel of data, ranging from 1992 to 2019, is appropriate for us to try to shed a light on an hypothetical correlation, at least in the aforementioned countries, between the price of petrol and the level of urbanization.
This project was composed by two courses MODS206 and MODS207. On MODS206, I started the early stage of the project, then on MODS207, I went deeper in the sults and analysis. Please read the PDF report for MODS206, and Slides for MODS207 for more explaination.