Publication:
Energy News Shocks and their Propagation to Renewable and Fossil Fuels Use

Simple item page
dc.affiliation.dptoUC3M. Departamento de Economíaes
dc.contributor.authorGuinea, Laurentiu
dc.contributor.authorPuch, Luis A.
dc.contributor.authorRuiz, Jesús
dc.contributor.editorUniversidad Carlos III. Departamento de Economíaes
dc.date.accessioned2023-05-31T07:46:13Z
dc.date.available2023-05-31T07:46:13Z
dc.date.issued2023-05-24
dc.description.abstractThis paper investigates the impact of anticipated (news) shocks on renewable and fossil energy use on the US economy. Using structural vector autoregressions (SVARs), we identify the news shocks captured in energy stock market indexes. Our findings show that renewable and fossil energy news shocks significantly affect economic activity, revealing the tensions between the traditional fossil fuel-based industries and the emerging green technology-based ones. We further identify news shocks on Economic Policy Uncertainty (EPU) index, as policy is a key factor driving the changes in the energy mix. First, we show that the identified anticipated shocks have very different propagation mechanisms from traditional surprise shocks. Then, we find that the combination of news shocks to energy stock prices and economic policy uncertainty jointly account for about 90% of the variability of output, job openings and house prices. To interpret our findings, we use a DSGE model that incorporates fossil and renewable energy sectors and news shocks as a driving force, and we show that the propagation mechanisms of news shocks in the model are consistent with our empirical observations. Our study illustrates on the critical interaction between energy news and economic policy uncertainty in affecting the real economy in the transition from dirty to clean energy technologies.en
dc.identifier.issn2340-5031
dc.identifier.urihttps://hdl.handle.net/10016/37355
dc.identifier.uxxiDT/0000002074
dc.language.isoeng
dc.relation.ispartofseriesWorking paper. Economicses
dc.relation.ispartofseries23-05
dc.relation.projectIDGobierno de España. PID2019-107161GB-C31es
dc.rightsAtribución-NoComercial-SinDerivadas 3.0 España*
dc.rights.urihttp://creativecommons.org/licenses/by-nc-nd/3.0/es/*
dc.subject.ecienciaEconomíaes
dc.subject.jelE2
dc.subject.jelE6
dc.subject.jelE32
dc.subject.jelE44
dc.subject.jelQ42
dc.subject.jelQ43
dc.subject.jelQ58
dc.subject.otherNews Shocksen
dc.subject.otherRenewable Energyen
dc.subject.otherEconomic Policy Uncertaintyen
dc.subject.otherExpectationsen
dc.titleEnergy News Shocks and their Propagation to Renewable and Fossil Fuels Useen
dc.typeworking paper*
dspace.entity.typePublication
Files
Original bundle
Now showing 1 - 1 of 1
Thumbnail Image
Name:
we2305.pdf
Size:
1.15 MB
Format:
Adobe Portable Document Format
Download
Collections
DE - Working Papers. Economics. WE