Question

Energy pricing and its impact on global variations

Answer 1

The direct, regulatory and time-varying effects are captured using methods such as ridge regression and the state-space model. The direct impacts of relative energy prices on total energy consumption and intensity are −0.337 and −0.250, respectively; the effects of comprehensive regulation on energy consumption through the economic structure and the energy structure are −0.144 and −0.148, respectively; and the depressing and upward effects of rising and falling energy prices on energy consumption are 0.3520 and 0.3564, respectively.

Answer 2

Energy pricing and its impact on global variations

• Huge exertion has been applied to the investigation of financial factors, for example, outright energy costs to comprehend energy utilization and monetary development.
• Nonetheless, this methodology disregards general expansion impacts, by which the costs of containers of products might increase or fall at various rates from those of energy costs.
• Accordingly, it could be the general energy cost, not the outright energy value, that has the most significant impact on energy utilization. To test this speculation, we present another illustrative variable, the homegrown relative energy value, which we characterize as "the proportion of homegrown energy costs to the overall value level of an economy," and we test the informative force of this new factor.