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Energy represents an important component of production costs and therefore, an increase in energy prices directly impacts economic productivity, unemployment, inflation, and balance of payments equilibrium – often engendering currency devaluations. Until recently, the growth in demand for conventional fuels, mainly oil and gas, has widened imbalances between demand for and supply of energy. The effects of the surge in oil prices ripple across the entire global economy resulting in a redistribution of international liquidity. The latter creates global imbalances characterized by increasing balance of payment deficits and deteriorating the terms of trade, reducing the flow of non‐energy goods and services and increasing uncertainty of future global transactions. The aim of this paper is to shed some light on the impact of higher fuel prices on global liquidity management.

Rising energy expenditures due to more intensive use of energy in modern agriculture and increasing energy prices may affect rural households’ agricultural incomes, particularly the incomes of the rural poor in developing countries. However, the exact link between energy costs and income among the rural poor needs further empirical investigation. The purpose of this paper is to develop a deeper understanding of the relationship between energy use and family income, using household-level panel data collected from 500 potato farmers in a poor region of Northern China, where eliminating poverty by 2020 is now the top government priority.

The paper uses household survey data collected from six counties in a poor region in northern China in 2013 to measure the relationship between energy cost and family income. A fixed effect model is employed to estimate the relationship.

The findings indicate that potatoes play an important role in the surveyed families’ incomes, and that the energy costs of potato production have a significant negative relationship with family income. However, this negative relationship is only significant for farmers with low economic standing, such as those living below or just above the poverty line. The negative relationship between energy costs and family income is only significant for those cultivating a certain size of potato-sown area; it is insignificant for those cultivating smaller areas.

These findings indicate that, in general, reducing energy costs helps the poor increase their income but is not necessarily helpful to those with high economic standing or a relatively small potato-sown area. If rural development policies are to support poverty reduction and energy savings (at least in major potato production regions), interventions aimed at energy cost reduction may be effective only for the poor whose family income depends, to a relatively high degree, on potato production.

This paper aims to examine the reaction of energy inflation to geopolitical risks in the European Economic Area between 1990 and 2015.

This study applies the nonparametric time-varying coefficient panel data model with fixed effects. In addition, to further reveal potential tail effects that may not have been captured by conditional mean-based regressions, the method of moments quantile regression was also used.

The findings of this study are as follows: first, as European countries get exposed to geopolitical tensions, it is expected that energy prices will surge. Second, the ability of geopolitical risk to trigger energy inflation in recent times is not as powerful as it used to be. Third, countries with a lower inflation rate, when exposed to geopolitical risks, experience smaller increases in energy inflation compared to countries with a higher inflation rate.

The findings of this study lead us to the conclusion that transitioning from nonrenewable to renewable energy use is one channel through which the sampled countries can battle the energy inflation, which geopolitical risks trigger. A sound macroeconomic policy for inflation control is a complementary channel through which the same goal can be achieved.

Given the increasing level of energy inflation and geopolitical risks in the world today, this study is an attempt to reveal the time-varying characteristics of the relationship between these variables in European countries using a nonparametric time-varying coefficient panel data model and method of moments quantile regression with fixed effects.

The purpose of this paper is to study the influence of inflated energy prices on the capital structure of Indian manufacturing corporations and to investigate whether the capital structure of Indian firms is driven by demand shocks or supply shocks during the study period.

After conducting a thorough review of the capital structure and inflation-based research studies, panel data-based regression model and correlation matrix have been used as statistical tools for Indian manufacturing sector available with the Centre for Monitoring Indian Economy Prowess database.

The results suggest that variables like the presence of inflated energy prices had adversely influenced the capital structure of Indian corporations. Not only this, the study also highlights that factors pertaining to the demand shock had induced Indian corporations to have higher debt levels in the capital structure.

This study has laid some ground work to explore the influence of inflation on capital structure of Indian firms upon which a more detailed evaluation could be based.

To the best of the authors’ knowledge, this study is the first that explores the influence of inflated energy prices on the capital structure of manufacturing firms in India by using the most recent data.

The purpose of this study is to examine oil price shocks on US shale oil supply and energy security during the period 2000q1–2020q4.

In this study, the Shannon–Wiener index was used to calculate energy security, and then a structural vector autoregression (VAR) was applied to measure the effect of oil price shocks.

The results of the variance decomposition indicate that oil prices account for about 20% of changes in US shale oil production, while it explains only about 3% of changes in energy security. Finally, historical decomposition confirms the results of impulse response functions.

The novelty of this study is that so far, no study has examined the effect of oil price shock on shale oil production and energy security in the USA using the structural VAR model. This study also used the latest Shannon–Wiener index as a measure of energy security in the USA. The reason for selecting this index is that, in addition to considering the share of the total consumption of each primary energy, the share of energy imports from each country as well as the political risk of energy exporting countries to the USA are also included.

In this paper, we aim to provide an extensive analysis to understand how various factors influence electricity prices in competitive markets, focusing on the day-ahead electricity market in Romania.

Our study period began in January 2019, before the COVID-19 pandemic, and continued for several months after the onset of the war in Ukraine. During this time, we also consider other challenges like reduced market competitiveness, droughts and water scarcity. Our initial dataset comprises diverse variables: prices of essential energy sources (like gas and oil), Danube River water levels (indicating hydrological conditions), economic indicators (such as inflation and interest rates), total energy consumption and production in Romania and a breakdown of energy generation by source (coal, gas, hydro, oil, nuclear and renewable energy sources) from various data sources. Additionally, we included carbon certificate prices and data on electricity import, export and other related variables. This dataset was collected via application programming interface (API) and web scraping, and then synchronized by date and hour.

We discover that the competitiveness significantly affected electricity prices in Romania. Furthermore, our study of electricity price trends and their determinants revealed indicators of economic health in 2019 and 2020. However, from 2021 onwards, signs of a potential economic crisis began to emerge, characterized by changes in the normal relationships between prices and quantities, among other factors. Thus, our analysis suggests that electricity prices could serve as a predictive index for economic crises. Overall, the Granger causality findings from 2019 to 2022 offer valuable insights into the factors driving energy market dynamics in Romania, highlighting the importance of economic policies, fuel costs and environmental regulations in shaping these dynamics.

We combine principal component analysis (PCA) to reduce the dataset’s dimensionality. Following this, we use continuous wavelet transform (CWT) to explore frequency-domain relationships between electricity price and quantity in the day-ahead market (DAM) and the components derived from PCA. Our research also delves into the competitiveness level in the DAM from January 2019 to August 2022, analyzing the Herfindahl-Hirschman index (HHI).

During the Paris Convention, Korean Government made commitment to curb carbon emission by 37 percent by the year of 2030. Since then there has been constant debate, both in media and academia, as to whether attempts to reduce carbon emission would spell the concomitant economic slowdown. The purpose of this paper is to build a Computable General Equilibrium (CGE) model to see the effects of emission decrease on Korea economy.

To answer the above question, we build a comprehensive framework to gauge the economic impact of Paris Convention through the lens of Computable General Equilibrium (CGE) model using Armington and Melitz model.

Contrary to conventional wisdom, Korea’s economic performance in terms of welfare remains robust when the carbon emission is reduced. Broadly speaking, Korea’s welfare does not contract significantly in part due to expansion at the export market. For instance, the energy intensive industry (EIT) is affected most directly from the Paris Convention commitment and yet it experiences growth in export. On the contrary, the authors find that the general economic impact on Korea’s output is negative. The additional experiment using Melitz model shows that as the carbon reduction is enforced, both the number and the average productivity of the exporting firms increase in the EIT sector, which the authors refer in the paper as the “Melitz Effect.”

This paper shows that what can be occurred in Korean industries by emission decrease commitment.

One byproduct from restricting carbon emission is the surge in the electricity price. This is due to the fact that industries have to shift away from traditional fuels such as oil to electricity for energy. Therefore the authors propose that industrial policies aimed at balancing electricity price should accompany the plan to reduce carbon emission.

For Korean economy, the effects of emission reduction is researched using Armington and Melitz model at the same time. Especially, this is the first research case using the Melitz model in this Korean topic.

The purpose of this paper is to examine the short‐ and long‐run causal relationship between energy consumption and gross domestic product (GDP) of six emerging economies of Asia. The importance of identifying the direction of causality emanates from its relevance in national policy‐making issues regarding energy conservation.

This paper employs co‐integration and vector error correction modeling along with generalized impulse response functions and varience decomposition tests to check the robustness of the findings.

The empirical results show that there exists unidirectional short‐ and long‐run causality running from energy consumption to GDP for China, uni‐directional short‐run causality from output to energy consumption for India, whilst bi‐directional short‐run causality for Thailand. Neutrality between energy consumption and income is found for Indonesia, Malaysia, and Philippines. Both the generalized variance decompositions and impulse response functions confirm the direction of causality.

These findings have important policy implications for the countries concerned. The results suggest that while India may directly initiate energy conservation measures, China and Thailand may opt for a balanced combination of alternative polices.

Many economists and social scientists are claiming that the increased demand for energy from developing countries like China and India is one of the major reasons for the energy price hikes in recent times. In this backdrop, it is justified to search causal relationship between energy consumption and national output (GDP) of some developing countries from Asia. Since the traditional bivariate approach suffers from omitted variable problems, this paper employs a trivariate demand side approach consisting of energy consumption, income and prices.

Solar as an energy source has a massive potential to reduce dependence on fossil fuels in Gulf Countries (GC). One attractive application of solar energy is solar-powered desalination, which is a viable method to produce fresh water. The most significant factor determining the potential deployment of this application is economics.

In this study, the classical economic analysis model has been modified to assess the penetration of solar technology to power desalination plants at different periods during the project lifetime. Furthermore, the environmental and financial values were combined to assess the incentive of powering desalination plants with solar energy in Saudi Arabia. Three systems of solar technologies accompanied with water desalination based on technical applicability were modeled and economically analyzed to understand the impact of various design and operation parameters.

This study shows that PV-RO is currently more competitive at both market and administrated prices in Saudi Arabia, followed by the MED-CSP system and finally CSP-RO system. CSP-RO system starts to generate positive surplus after 11 years, while the base case shows no positive surplus at all during the entire lifetime. Moreover, the same trend continues to hold with MED-CSP and PV-RO systems. The MED-CSP generates positive surplus after six years and PV-RO after five years only. On average, it takes eight years for a project running based on solar (CAPEX and OPEX) and desalination OPEX to generate positive cash surplus.

This paper discusses the debate about incentives for renewable energy in GC and the impact of coupling water production and solar generation. Given that there is no analytical framework built earlier, this paper provides an alternative methodology for policy analysis to understand the role of economies of scope to incentivize solar generation. In other words, the authors are investigating options to reduce the total cost of solar production as a result of increasing the number of different goods produced.