Nothing Special   »   [go: up one dir, main page]
IDEAS home Printed from https://ideas.repec.org/p/hhs/cbsnow/2024_014.html
   My bibliography  Save this paper

Geopolitical Conflict and Risk and the EU Energy Trading: A Dynamic Evolutionary Networks Analysis

Author

Listed:
  • Xu, Shuanglei

    (School of International Trade and Economics, University of International Business and Economics, Beijing 100029, China)

  • Deng, Youyi

    (School of International Trade and Economics, University of International Business and Economics, Beijing 100029, China)

  • Nepal, Rabindra

    (School of Business, Faculty of Business and Law, University of Wollongong, New South Wales, Australia)

  • Jamasb, Tooraj

    (Department of Economics, Copenhagen Business School)

Abstract
Since the Russian-Ukrainian conflict, the European Union (EU)’s energy imports have faced challenges, and energy security has come to the fore. Focusing on the EU and its relations with major energy trading countries, we adopt a social network approach (SNA) and exponential random graph model (ERGM) to analyze the energy trade impact of the conflict. We use data from a sample of 47 countries from 2014-2023 to explore the characteristics of the structural evolution of the EU’s conventional and renewable trade networks and the influencing mechanisms behind them. As a result of the conflict and the global trend towards decoupling, the EU’s conventional trade network is undergoing a contraction. Meanwhile, its renewable trade network is thriving, indicating a shift in energy structures; the core-periphery undergoing restructuring, Russia fading out of the core circle of the trade, and the US becoming a key hub connecting all parties. Germany, France, and the Netherlands play the role of important importers as core nodes of the network. Mechanistic analysis shows that mutual plays an important role in multilateral trade; rising geopolitical risks, while posing a barrier to energy imports, have facilitated a boom in renewable trade; economic size and trade openness have positively driven energy trade. Foreign investment, intellectual property rights, and levels of population and urbanization have had a differentiated impact on the two types of energy trade; geographic proximity, linguistic commonality, and free trade agreements positively contribute to the construction and maintenance of energy trade networks. This study depicts the dynamics of EU energy trade under geopolitical turbulence, expands the research methodology in this area, deepens the understanding of energy geopolitics, and informs the transformation of the EU’s energy structure.

Suggested Citation

  • Xu, Shuanglei & Deng, Youyi & Nepal, Rabindra & Jamasb, Tooraj, 2024. "Geopolitical Conflict and Risk and the EU Energy Trading: A Dynamic Evolutionary Networks Analysis," Working Papers 14-2024, Copenhagen Business School, Department of Economics.
    • Handle: RePEc:hhs:cbsnow:2024_014
    as

    Download full text from publisher

    File URL: https://hdl.handle.net/10398/dcc6e0c2-198d-4820-a7aa-c04c1504fced
    File Function: Full text
    Download Restriction: Full text not avaiable
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Keywords

    European Union; Conventional energy trade; Renewable energy trade; Social network; Exponential random graph model;
    All these keywords.

    JEL classification:

    • F18 - International Economics - - Trade - - - Trade and Environment
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hhs:cbsnow:2024_014. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: CBS Library Research Registration Team (email available below). General contact details of provider: https://edirc.repec.org/data/incbsdk.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.