The Unassuming Economist

From a paper by John Beirne, and Nuobu Renzhi:

“This paper provides estimates of oil price pass-through (OPPT) to both producer and consumer prices for nine emerging Asian economies using a time-varying parameter SVAR model over the period 1991–2023. We further examine how global factors affect the transmission of oil prices to producer and consumer prices, specifically via shocks in global output, US monetary policy, and global financial market uncertainty. Overall, we find that OPPT is less than proportionate and mostly higher for OPPT to producer than consumer prices, while pass-through estimates also tend to be higher in the long term. In addition, we find that OPPT has been declining for most Asian EMEs in the period after the global financial crisis of 2008. Finally, while the responsiveness of OPPT to global shocks varies depending on the type of shock, contractionary US monetary policy shocks overall most significantly amplify OPPT for both producer and consumer prices.”

From a paper by Farhan Wahid, Noman Shafi, Ahsan Abbas, and Muhammad Junaid Bilal:

“This research has been undertaken for the investigation of the association of the renewable energy consumption (REC) with the foreign direct investment (FDI) along with moderating effect of the renewable internal energy resources (RIFS). This study’s prime objective is examining the influence of the REC on the FDI, and understanding how the RIFS impacts the REC and the FDI relationship. The data has been collected from the database of the World Bank for countries belonging to OECD for the period beginning from 2011 and ending in 2020. The results have been drawn by using STATA 17 software which show significant values for the regression test, the unit root tests and the GMM test. Furthermore, this research highlights that the RIFS moderates the relationship between the said variables and results show that when there is an involvement of the renewable sources of the energy, the REC’s effect on the FDI is moderated. Concludingly, it has been analyzed that the relationship of the REC with the FDI is significant while underscoring the RIFS’ role in the production of renewable energy. This study suggests that the RIFS in the energy sector can increase the FDI.”

From a paper by Richard Schmitz,, Franziska Flachsbarth, Leonie Sara Plaga, Martin Brauna, and
Philipp Härtel:

“Recent events, including the pandemic, geopolitical conflicts, supply chain disruptions, and climate
change impacts, have exposed the critical need to ensure energy security and resilience in energy
systems. We review existing definitions and interrelations between energy security and resilience,
conceptualising these terms in the context of energy system transformations. We introduce a classification of disturbances into shock events and slowburn processes to highlight key challenges to energy system resilience. Examples illustrate their distinct impacts on technical, economic, and environmental system performance over time.We compile relevant recourse options across resilience capacity levels and system planning horizons to address these challenges, emphasising actionable strategies for an increasingly integrated energy system. Finally, we propose policy recommendations to integrate shock events and slow burn processes into future energy system planning, enabling forward-looking decision-making and system design to analyse and mitigate potential disruptions.”

From a paper by Saeeda Batool, and Saira Tufail:

“This study examines the link between the energy market dynamics and labor market outcomes with a focus on the impact of oil market shocks, energy-related uncertainties, and risks on labor income share. Utilizing Panel Structural Vector Autoregression (PSVAR) for a group of 29 OECD countries over the period of 1999 to 2021, this research offers key insights for economies navigating the challenge of ensuring energy security while safeguarding workers’ incomes amid evolving energy markets. The results of the impulse response analysis revealed that among different energy market dynamics, the oil price has a strong negative impact on labor income, whereas higher aggregate demand tends to increase the share of labor income. Similarly, shocks to energy security risks and energy-related uncertainties reduce labor income. The variance decomposition analysis confirms that oil supply shocks are the main factor accounting for the variability in labor income, followed by oil demand shocks. Additionally, energy security risks and economic uncertainty significantly shape the labor income variability, particularly in the medium to long term, by increasing the volatility and unpredictability in labor markets. These findings underscore the critical need for policies that address the vulnerabilities of the labor income share against these shocks.”

From a paper by Behnaz Minooei Fard and Willi Semmler:

“In some academic and policy circles, carbon pricing, generally in the form of Cap & Trade or carbon taxes (see Metcalf and Stock (2020)), is often seen as a key strategy for tackling climate change and its associated risks. Others support directed technical change and direct investments in cleaner energy sources (see Acemoglu et al. (2012) and Aghion et al. (2022)). One can design theoretical and model-guided strategies and efficient or optimal paths to decarbonization of the economy. Politically, however, one of the most important issues is that significant behavioral constraints exist in actual policymaking. This paper provides an overview and survey of the strengths and weaknesses of either side of the decarbonization strategy and the role of behavioral drivers toward a low-carbon economy, assessed from the macro-and microeconomic perspectives.”