An Empirical Analysis of the Effects of Energy Price Shocks for Sustainable Energy on the Macro-Economy of South Asian Countries

Arodh Lal Karn (), Bhavana Raj Kondamudi, Ravi Kumar Gupta, Denis A. Pustokhin, Irina V. Pustokhina, Meshal Alharbi, Subramaniyaswamy Vairavasundaram (), Vijayakumar Varadarajan and Sudhakar Sengan ()
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Arodh Lal Karn: Department of Financial and Actuarial Mathematics, Xi’an Jiaotong-Liverpool University, Suzhou 215123, China
Bhavana Raj Kondamudi: Department of Management Studies, Institute of Public Enterprise, Hyderabad 500101, Telangana, India
Ravi Kumar Gupta: Department of Humanities and Management Science, Madan Mohan Malaviya University of Technology, Gorakhpur 273016, Uttar Pradesh, India
Denis A. Pustokhin: Department of Logistics, State University of Management, 109542 Moscow, Russia
Irina V. Pustokhina: Department of Entrepreneurship and Logistics, Plekhanov Russian University of Economics, 117997 Moscow, Russia
Meshal Alharbi: Department of Computer Science, College of Computer Engineering and Sciences, Prince Sattam Bin Abdulaziz University, Al-Kharj 11942, Saudi Arabia
Subramaniyaswamy Vairavasundaram: School of Computing, SASTRA Deemed University, Thanjavur 613401, Tamil Nadu, India
Vijayakumar Varadarajan: School of Computer Science and Engineering, University of New South Wales, Sydney 2052, Australia
Sudhakar Sengan: Department of Computer Science and Engineering, PSN College of Engineering and Technology, Tirunelveli 627152, Tamil Nadu, India

Energies, 2022, vol. 16, issue 1, 1-19

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.

Keywords: energy price; GDP; real effective exchange rate; money supply; inflation rate (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2022
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