The evolution and implications of national energy cost shares
The evolution and implications of national energy cost shares
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.
Energy Intensity, Energy cost share, Energy efficiency, Energy income share, Energy price elasticity, Energy subsidies, carbon price
Agnolucci, Paolo
2b9a09fe-bc65-4377-8c00-a1505abe1978
De Lipsis, Vincenzo
92ad4463-49f5-412e-b0fc-0a4497767dbe
Gencer, Defne
4c61a4a1-09e8-40f4-823a-183062371b9d
Lartey, Abraham
13877f47-121c-4790-b320-a8b2c2693c23
Grubb, Michael
5a224031-8f39-40e1-a8de-be4ddeb15693
19 June 2025
Agnolucci, Paolo
2b9a09fe-bc65-4377-8c00-a1505abe1978
De Lipsis, Vincenzo
92ad4463-49f5-412e-b0fc-0a4497767dbe
Gencer, Defne
4c61a4a1-09e8-40f4-823a-183062371b9d
Lartey, Abraham
13877f47-121c-4790-b320-a8b2c2693c23
Grubb, Michael
5a224031-8f39-40e1-a8de-be4ddeb15693
Agnolucci, Paolo, De Lipsis, Vincenzo, Gencer, Defne, Lartey, Abraham and Grubb, Michael
(2025)
The evolution and implications of national energy cost shares.
Energy Economics, 148, [108616].
(doi:10.1016/j.eneco.2025.108616).
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.
Text
published
- Version of Record
Restricted to Repository staff only
Request a copy
Text
1-s2.0-S0140988325004438-main
- Version of Record
More information
Accepted/In Press date: 13 May 2025
e-pub ahead of print date: 22 May 2025
Published date: 19 June 2025
Keywords:
Energy Intensity, Energy cost share, Energy efficiency, Energy income share, Energy price elasticity, Energy subsidies, carbon price
Identifiers
Local EPrints ID: 503987
URI: http://eprints.soton.ac.uk/id/eprint/503987
ISSN: 0140-9883
PURE UUID: 32df06df-4229-415f-b769-c56b323f0f7e
Catalogue record
Date deposited: 21 Aug 2025 04:48
Last modified: 09 Sep 2025 02:10
Export record
Altmetrics
Contributors
Author:
Paolo Agnolucci
Author:
Defne Gencer
Author:
Abraham Lartey
Author:
Michael Grubb
Download statistics
Downloads from ePrints over the past year. Other digital versions may also be available to download e.g. from the publisher's website.
View more statistics
