LAPSE:2023.6646
Published Article
LAPSE:2023.6646
An Empirical Analysis of the Effects of Energy Price Shocks for Sustainable Energy on the Macro-Economy of South Asian Countries
February 24, 2023
Abstract
Energy prices (EPs) play an imperative role in South Asian Country (SAC) Gross Domestic Product (GDP). This research empirically examines the influence of sustainable energy price shocks (EPSs) on macroeconomic indicators. The study is to forecast the impact of EPS on macroeconomic indicators from 1980 to 2020. The analysis is carried out by employing the Vector Auto-Regression (VAR) approach. Impulse Response Functions (IRFs) results indicate that EPS decreases Gross Domestic Product (GDP). They exist in the short run and the long run. This research study’s overall findings suggest that high EPSs have a negative impact on GDP. The study implies that policymakers should develop, adopt, and initiate some imperatives to control the unanticipated volatility and movements in EP. The study highlights that policy should be designed to prevent fluctuations in sustainable EP and plan conservative energy policies that motivate discovering alternative energy sources to meet increasing energy demand and improve economic growth.
Energy prices (EPs) play an imperative role in South Asian Country (SAC) Gross Domestic Product (GDP). This research empirically examines the influence of sustainable energy price shocks (EPSs) on macroeconomic indicators. The study is to forecast the impact of EPS on macroeconomic indicators from 1980 to 2020. The analysis is carried out by employing the Vector Auto-Regression (VAR) approach. Impulse Response Functions (IRFs) results indicate that EPS decreases Gross Domestic Product (GDP). They exist in the short run and the long run. This research study’s overall findings suggest that high EPSs have a negative impact on GDP. The study implies that policymakers should develop, adopt, and initiate some imperatives to control the unanticipated volatility and movements in EP. The study highlights that policy should be designed to prevent fluctuations in sustainable EP and plan conservative energy policies that motivate discovering alternative energy sources to meet increasing energy demand and improve economic growth.
Record ID
Keywords
energy price, GDP, inflation rate, money supply, real effective exchange rate
Subject
Suggested Citation
Lal Karn A, Kondamudi BR, Gupta RK, Pustokhin DA, Pustokhina IV, Alharbi M, Vairavasundaram S, Varadarajan V, Sengan S. An Empirical Analysis of the Effects of Energy Price Shocks for Sustainable Energy on the Macro-Economy of South Asian Countries. (2023). LAPSE:2023.6646
Author Affiliations
Lal Karn A: Department of Financial and Actuarial Mathematics, Xi’an Jiaotong-Liverpool University, Suzhou 215123, China [ORCID]
Kondamudi BR: Department of Management Studies, Institute of Public Enterprise, Hyderabad 500101, Telangana, India
Gupta RK: Department of Humanities and Management Science, Madan Mohan Malaviya University of Technology, Gorakhpur 273016, Uttar Pradesh, India
Pustokhin DA: Department of Logistics, State University of Management, 109542 Moscow, Russia
Pustokhina IV: Department of Entrepreneurship and Logistics, Plekhanov Russian University of Economics, 117997 Moscow, Russia
Alharbi M: Department of Computer Science, College of Computer Engineering and Sciences, Prince Sattam Bin Abdulaziz University, Al-Kharj 11942, Saudi Arabia
Vairavasundaram S: School of Computing, SASTRA Deemed University, Thanjavur 613401, Tamil Nadu, India
Varadarajan V: School of Computer Science and Engineering, University of New South Wales, Sydney 2052, Australia; International Division, Ajeenkya DY Patil University, Pune 412105, Maharashtra, India; DBA Division, School of Business and Management, Geneva 1213, Switzer [ORCID]
Sengan S: Department of Computer Science and Engineering, PSN College of Engineering and Technology, Tirunelveli 627152, Tamil Nadu, India [ORCID]
Kondamudi BR: Department of Management Studies, Institute of Public Enterprise, Hyderabad 500101, Telangana, India
Gupta RK: Department of Humanities and Management Science, Madan Mohan Malaviya University of Technology, Gorakhpur 273016, Uttar Pradesh, India
Pustokhin DA: Department of Logistics, State University of Management, 109542 Moscow, Russia
Pustokhina IV: Department of Entrepreneurship and Logistics, Plekhanov Russian University of Economics, 117997 Moscow, Russia
Alharbi M: Department of Computer Science, College of Computer Engineering and Sciences, Prince Sattam Bin Abdulaziz University, Al-Kharj 11942, Saudi Arabia
Vairavasundaram S: School of Computing, SASTRA Deemed University, Thanjavur 613401, Tamil Nadu, India
Varadarajan V: School of Computer Science and Engineering, University of New South Wales, Sydney 2052, Australia; International Division, Ajeenkya DY Patil University, Pune 412105, Maharashtra, India; DBA Division, School of Business and Management, Geneva 1213, Switzer [ORCID]
Sengan S: Department of Computer Science and Engineering, PSN College of Engineering and Technology, Tirunelveli 627152, Tamil Nadu, India [ORCID]
Journal Name
Energies
Volume
16
Issue
1
First Page
363
Year
2022
Publication Date
2022-12-28
ISSN
1996-1073
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PII: en16010363, Publication Type: Journal Article
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LAPSE:2023.6646
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