How do supply chain and geopolitical risks threaten energy security? A time and frequency analysis

Khalid Khan

Energy, 2025, vol. 316, issue C

Abstract: The relationship between global supply chains and energy security is critical in a volatile geopolitical landscape. In addition to increasing economic affluence, globalization has created vulnerabilities that are exacerbated by supply disruptions and geopolitical conflicts. However, the existing literature does not adequately examine the time and frequency relationship between global supply chains and energy security in the context of geopolitical risks. This study unveils the correlation between the global supply chain and energy security in the presence of geopolitical risks using wavelet analysis. The findings of wavelet coherency reveal a correlation between the global supply chain and energy security. The phase difference results indicate that the global supply chain leads to energy security in the medium run. The direction of the correlation reverses when energy security starts to lead the global supply chain in the short to medium term, coinciding with geopolitical events. However, the correlation has become more pronounced in the absence of geopolitical risks, demonstrating an increasingly close interaction between the global supply chain and energy security in the medium to long run. Therefore, reducing volatility spillovers requires cooperation in energy logistics policy.

Keywords: Global supply chain; Energy security; Geopolitical risks; Energy supply; Wavelet analysis (search for similar items in EconPapers)
JEL-codes: C4 M38 Q54 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:energy:v:316:y:2025:i:c:s0360544225001434

DOI: 10.1016/j.energy.2025.134501

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