Energy price shocks induced by the Russia-Ukraine conflict jeopardize wellbeing

Yaxin Zhang, Yuli Shan, Xinzhu Zheng, Can Wang, Yuru Guan, Jin Yan, Franco Ruzzenenti and Klaus Hubacek

Energy Policy, 2023, vol. 182, issue C

Abstract: The significant spike in global energy prices induced by the Russian-Ukrainian (RU) conflict is perceived as highly uncertain that may rise household living costs and adversely affect Sustainable Development Goals such as poverty elimination. However, the impacts on human wellbeing are entirely obscured by conventional economic analyses. Using the input-output price model and a human needs framework, we assess the impact of energy price shocks caused by the RU conflict on eight dimensions of human needs in 49 countries/regions. Our findings show that the non-material dimension Creation and the material dimension Protection are the most affected human needs globally, with declines of 3.7%–8.5% and 3.6%–8.4%, respectively. Households in BRICS countries are hit hardest on these human needs (2.0-2.2 times the global average) owing to higher price increases and higher energy-dependent consumption patterns. The human need satisfaction of low-income groups is not only severely affected, but also the poorer the country in which they reside, the more serious the decline of their satisfaction, while there is no such problem for higher income groups. Our findings underscore the need to consider both material and frequently overlooked non-material dimensions of wellbeing when designing targeted policies to protect the vulnerable from energy price shocks.

Keywords: Energy prices; Household consumption; Welfare; The input-output price model; The fundamental human needs framework (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0301421523003282
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:enepol:v:182:y:2023:i:c:s0301421523003282

DOI: 10.1016/j.enpol.2023.113743

Access Statistics for this article

Energy Policy is currently edited by N. France

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