Agnolucci, P;
De Lipsis, V;
Gencer, D;
Lartey, A;
Grubb, M;
(2025)
The evolution and implications of national energy cost shares.
Energy Economics
, 148
, Article 108616. 10.1016/j.eneco.2025.108616.
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Abstract
Energy cost share is a key indicator to assess the importance of energy in an economy, to highlight the potential exposure of energy-importing countries to international price shocks, and to understand the implications for the national economy of introducing carbon pricing or energy subsidies reforms. We construct a global dataset to study the evolution of national energy cost shares over time and their relationship with energy prices. On these data we estimate a theoretically grounded econometric model and we obtain a wide set of findings that have important implications for policy. The main findings are that economies have a strong capacity to adapt to higher energy prices also through technological innovation, but the time for this adjustment can be very long; the ability to reduce energy intensity in response to higher energy prices has improved over time; both energy efficiency policies and certain macroeconomic characteristics of the country can help in facilitating the adjustment avoiding an excessive increase in energy cost share.
| Type: | Article |
|---|---|
| Title: | The evolution and implications of national energy cost shares |
| Open access status: | An open access version is available from UCL Discovery |
| DOI: | 10.1016/j.eneco.2025.108616 |
| Publisher version: | https://doi.org/10.1016/j.eneco.2025.108616 |
| Language: | English |
| Additional information: | © 2025 The Authors. Published by Elsevier B.V. This is an open access article under the CC BY license (http://creativecommons.org/licenses/by/4.0/). |
| Keywords: | Energy cost share, Energy income share, Energy subsidies, Energy Intensity, Energy price elasticity, Energy efficiency, carbon price |
| UCL classification: | UCL UCL > Provost and Vice Provost Offices > UCL BEAMS UCL > Provost and Vice Provost Offices > UCL BEAMS > Faculty of the Built Environment UCL > Provost and Vice Provost Offices > UCL BEAMS > Faculty of the Built Environment > Bartlett School Env, Energy and Resources |
| URI: | https://discovery.ucl.ac.uk/id/eprint/10213385 |
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