From oil surges to renewable shifts: Unveiling the dynamic impact of supply and demand shocks in global crude oil market on US clean energy trends

Result code in IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F60460709%3A41110%2F24%3A101572" target="_blank" >RIV/60460709:41110/24:101572 - isvavai.cz</a>

Result on the web

<a href="https://www.sciencedirect.com/science/article/pii/S0301421524002726" target="_blank" >https://www.sciencedirect.com/science/article/pii/S0301421524002726</a>

DOI - Digital Object Identifier

<a href="http://dx.doi.org/10.1016/j.enpol.2024.114252" target="_blank" >10.1016/j.enpol.2024.114252</a>

Result language

angličtina

Original language name

From oil surges to renewable shifts: Unveiling the dynamic impact of supply and demand shocks in global crude oil market on US clean energy trends

Original language description

Transitioning to renewable energies has become undeniably important in recent decades, especially for the United States. Oil price shocks are prominent determinants of renewable energy. Hence, this study examines the impacts of oil supply, aggregate demand, and oil-specific demand shocks on renewable energy consumption from 1973:01 to 2021:05 using Structural VAR and Time-Varying Parameter VAR models. Based on the results, oil supply shocks generally have a negligible effect on renewable energy, except those that originate from sharp changes in Saudi Arabian oil production and the U.S. recession-induced oil supply deficit. Aggregate demand shocks, such as those caused by the Persian Gulf War and the Asian financial crisis, negatively affect renewable energy by reducing investments and making oil more affordable. Conversely, oil-specific demand shocks, such as the 1979 Iranian Revolution and the 2008 financial crisis, initially reduce renewable energy attractiveness but ultimately lead to increased renewable energy consumption due to soaring oil prices. This study ' s unique approach of separately examining global oil market shocks provides new insights, complementing and extending previous research on the relationship between oil prices and renewable energy consumption. Eventually, policy implications for strengthening incentive policies and adding punitive policies to seeking investment in renewable energy are proposed.

Czech name

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Czech description

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Type

J_imp - Article in a specialist periodical, which is included in the Web of Science database

CEP classification

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OECD FORD branch

20704 - Energy and fuels

Project

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Continuities

S - Specificky vyzkum na vysokych skolach

Publication year

2024

Confidentiality

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Name of the periodical

ENERGY POLICY

ISSN

0301-4215

e-ISSN

0301-4215

Volume of the periodical

192

Issue of the periodical within the volume

Neuvedeno

Country of publishing house

CZ - CZECH REPUBLIC

Number of pages

13

Pages from-to

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UT code for WoS article

001267740300001

EID of the result in the Scopus database

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