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Energy price dynamics in the face of uncertainty shocks and the role of exchange rate regimes : a global crosscountry analysis

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Resumo:This study examines the effects of geopolitical risk and global uncertainty on energy prices, conditioned by different exchange rate regimes, for 185 economies over the period 1980-2023. The central question is how uncertainty impacts energy prices and whether exchange rate flexibility mediates these effects. Using panel data techniques, including OLS and Panel VAR, we assess both demand and supply-side channels, exploring country-specific differences. Our key findings indicate that uncertainty shocks significantly raise energy prices, particularly in countries with flexible exchange rates, where currency depreciation amplifies global price fluctuations. Asymmetric results are found regarding emerging markets, with flexible exchange rates, which tend to have lower energy prices, while oil-exporting countries and OPEC members experience distinct pricing dynamics. These results underscore the importance of exchange rate policy choices in shaping energy market responses to global shocks. Policymakers may need to adopt complementary measures to manage the volatility arising from global uncertainty
Autores principais:Afonso, António
Outros Autores:Alves, José; Jalles, João; Monteiro, Sofia
Assunto:Geopolitical Risk World Uncertainty Index Global Energy Markets Exchange Rate Regimes Asymmetric Effects
Ano:2024
País:Portugal
Tipo de documento:working paper
Tipo de acesso:acesso aberto
Instituição associada:Universidade de Lisboa
Idioma:inglês
Origem:Repositório da Universidade de Lisboa
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author Afonso, António
author2 Alves, José
Jalles, João
Monteiro, Sofia
author2_role author
author
author
author_facet Afonso, António
Alves, José
Jalles, João
Monteiro, Sofia
author_role author
contributor_name_str_mv Repositório Científico de Acesso Aberto da ULisboa
country_str PT
creators_json_txt [{\"Person.name\":\"Afonso, António\"},{\"Person.name\":\"Alves, José\"},{\"Person.name\":\"Jalles, João\"},{\"Person.name\":\"Monteiro, Sofia\"}]
datacite.contributors.contributor.contributorName.fl_str_mv Repositório Científico de Acesso Aberto da ULisboa
datacite.creators.creator.creatorName.fl_str_mv Afonso, António
Alves, José
Jalles, João
Monteiro, Sofia
datacite.date.Accepted.fl_str_mv 2024-09-01T00:00:00Z
datacite.date.available.fl_str_mv 2024-11-26T14:03:45Z
datacite.date.embargoed.fl_str_mv 2024-11-26T14:03:45Z
datacite.rights.fl_str_mv http://purl.org/coar/access_right/c_abf2
datacite.subjects.subject.fl_str_mv Geopolitical Risk
World Uncertainty Index
Global Energy Markets
Exchange Rate Regimes
Asymmetric Effects
datacite.titles.title.fl_str_mv Energy price dynamics in the face of uncertainty shocks and the role of exchange rate regimes : a global crosscountry analysis
dc.contributor.none.fl_str_mv Repositório Científico de Acesso Aberto da ULisboa
dc.creator.none.fl_str_mv Afonso, António
Alves, José
Jalles, João
Monteiro, Sofia
dc.date.Accepted.fl_str_mv 2024-09-01T00:00:00Z
dc.date.available.fl_str_mv 2024-11-26T14:03:45Z
dc.date.embargoed.fl_str_mv 2024-11-26T14:03:45Z
dc.format.none.fl_str_mv application/pdf
dc.identifier.none.fl_str_mv http://hdl.handle.net/10400.5/95645
dc.language.none.fl_str_mv eng
dc.publisher.none.fl_str_mv ISEG – REM (Research in Economics and Mathematics)
dc.rights.none.fl_str_mv http://purl.org/coar/access_right/c_abf2
dc.subject.none.fl_str_mv Geopolitical Risk
World Uncertainty Index
Global Energy Markets
Exchange Rate Regimes
Asymmetric Effects
dc.title.fl_str_mv Energy price dynamics in the face of uncertainty shocks and the role of exchange rate regimes : a global crosscountry analysis
dc.type.none.fl_str_mv http://purl.org/coar/resource_type/c_8042
description This study examines the effects of geopolitical risk and global uncertainty on energy prices, conditioned by different exchange rate regimes, for 185 economies over the period 1980-2023. The central question is how uncertainty impacts energy prices and whether exchange rate flexibility mediates these effects. Using panel data techniques, including OLS and Panel VAR, we assess both demand and supply-side channels, exploring country-specific differences. Our key findings indicate that uncertainty shocks significantly raise energy prices, particularly in countries with flexible exchange rates, where currency depreciation amplifies global price fluctuations. Asymmetric results are found regarding emerging markets, with flexible exchange rates, which tend to have lower energy prices, while oil-exporting countries and OPEC members experience distinct pricing dynamics. These results underscore the importance of exchange rate policy choices in shaping energy market responses to global shocks. Policymakers may need to adopt complementary measures to manage the volatility arising from global uncertainty
dirty 0
eu_rights_str_mv openAccess
format workingPaper
fulltext.url.fl_str_mv https://repositorio.ulisboa.pt/bitstreams/544ebf79-0439-42b9-87fb-b015104752f0/download
id ul_49a7bf2ff4ce67f39518c08fd1504e92
identifier.url.fl_str_mv http://hdl.handle.net/10400.5/95645
instacron_str ul
institution Universidade de Lisboa
instname_str Universidade de Lisboa
language eng
network_acronym_str ul
network_name_str Repositório da Universidade de Lisboa
oai_identifier_str oai:repositorio.ulisboa.pt:10400.5/95645
organization_str_mv urn:organizationAcronym:ul
person_str_mv Afonso, António
Alves, José
Jalles, João
Monteiro, Sofia
publishDate 2024
publisher.none.fl_str_mv ISEG – REM (Research in Economics and Mathematics)
reponame_str Repositório da Universidade de Lisboa
repository_id_str urn:repositoryAcronym:ul
service_str_mv urn:repositoryAcronym:ul
spelling engISEG – REM (Research in Economics and Mathematics)pt_PTThis study examines the effects of geopolitical risk and global uncertainty on energy prices, conditioned by different exchange rate regimes, for 185 economies over the period 1980-2023. The central question is how uncertainty impacts energy prices and whether exchange rate flexibility mediates these effects. Using panel data techniques, including OLS and Panel VAR, we assess both demand and supply-side channels, exploring country-specific differences. Our key findings indicate that uncertainty shocks significantly raise energy prices, particularly in countries with flexible exchange rates, where currency depreciation amplifies global price fluctuations. Asymmetric results are found regarding emerging markets, with flexible exchange rates, which tend to have lower energy prices, while oil-exporting countries and OPEC members experience distinct pricing dynamics. These results underscore the importance of exchange rate policy choices in shaping energy market responses to global shocks. Policymakers may need to adopt complementary measures to manage the volatility arising from global uncertaintyapplication/pdfpt_PTEnergy price dynamics in the face of uncertainty shocks and the role of exchange rate regimes : a global crosscountry analysisAfonso, AntónioAlves, JoséJalles, JoãoMonteiro, SofiaHostingInstitutionOrganizationalRepositório Científico de Acesso Aberto da ULisboae-mailmailto:repositorio@reitoria.ulisboa.ptrepositorio@reitoria.ulisboa.ptISSNIsPartOf2184-108X2024-11-26T14:03:45Z2024-092024-09-01T00:00:00ZHandlehttp://hdl.handle.net/10400.5/95645http://purl.org/coar/access_right/c_abf2open accessGeopolitical RiskWorld Uncertainty IndexGlobal Energy MarketsExchange Rate RegimesAsymmetric Effects2198025 bytesother research producthttp://purl.org/coar/resource_type/c_8042working paperhttp://purl.org/coar/access_right/c_abf2application/pdffulltexthttps://repositorio.ulisboa.pt/bitstreams/544ebf79-0439-42b9-87fb-b015104752f0/download
spellingShingle Energy price dynamics in the face of uncertainty shocks and the role of exchange rate regimes : a global crosscountry analysis
Afonso, António
Geopolitical Risk
World Uncertainty Index
Global Energy Markets
Exchange Rate Regimes
Asymmetric Effects
status SINGLETON
subject.fl_str_mv Geopolitical Risk
World Uncertainty Index
Global Energy Markets
Exchange Rate Regimes
Asymmetric Effects
title Energy price dynamics in the face of uncertainty shocks and the role of exchange rate regimes : a global crosscountry analysis
title_full Energy price dynamics in the face of uncertainty shocks and the role of exchange rate regimes : a global crosscountry analysis
title_fullStr Energy price dynamics in the face of uncertainty shocks and the role of exchange rate regimes : a global crosscountry analysis
title_full_unstemmed Energy price dynamics in the face of uncertainty shocks and the role of exchange rate regimes : a global crosscountry analysis
title_short Energy price dynamics in the face of uncertainty shocks and the role of exchange rate regimes : a global crosscountry analysis
title_sort Energy price dynamics in the face of uncertainty shocks and the role of exchange rate regimes : a global crosscountry analysis
topic Geopolitical Risk
World Uncertainty Index
Global Energy Markets
Exchange Rate Regimes
Asymmetric Effects
topic_facet Geopolitical Risk
World Uncertainty Index
Global Energy Markets
Exchange Rate Regimes
Asymmetric Effects
url http://hdl.handle.net/10400.5/95645
visible 1