Interconnectedness among supply chain disruptions, energy crisis, and oil market volatility on economic resilience

Shaopeng Yang and Yuxi Fu

Energy Economics, 2025, vol. 143, issue C

Abstract: Volatility in global energy markets, disruption of production and distribution networks, and the unpredictability of oil markets have had a major impact on overall economic stability, highlighting the need to review their complex interrelationships thoroughly. In this spirit, this study uses monthly data from 1998 to 2023 to investigate the causal impact of energy uncertainty, global supply chain pressures, and oil supply and demand shocks on economic stability. By using the rolling window approach, we discovered time-varying causality. Our findings reveal the causal relationship between energy uncertainty, global supply chain pressures, and economic growth, highlighting their negative impacts. In addition, the study identified the negative causal relationship between oil demand and supply shocks on economic stability, with the impact of oil supply shocks being more pronounced. Further, error prediction variance decomposition and impulse response analysis provide additional evidence for these causal relationships. Given these findings, the study advocates establishing a more resilient supply chain structure and the energy sector to enhance the sustainability of the global economy.

Keywords: Energy security; Supply chain; Oil shocks; Economic stability; Rolling window (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0140988325001136
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:eneeco:v:143:y:2025:i:c:s0140988325001136

DOI: 10.1016/j.eneco.2025.108290

Access Statistics for this article

Energy Economics is currently edited by R. S. J. Tol, Beng Ang, Lance Bachmeier, Perry Sadorsky, Ugur Soytas and J. P. Weyant

More articles in Energy Economics from Elsevier
Bibliographic data for series maintained by Catherine Liu ().