Paper Title :The Effect of Energy Crisis in Europe on The Global Economy

Author :Saleh Mothana Obadi, Matejkorček

Article Citation :Saleh Mothana Obadi ,Matejkorček , (2022 ) " The Effect of Energy Crisis in Europe on The Global Economy " , International Journal of Management and Applied Science (IJMAS) , pp. 43-50, Volume-8,Issue-8

Abstract : Abstract - This paper deals with causes of ongoing energy crisis which started on natural gas market in Europe in the wake of post pandemic recovery. Multiple factors ranging from weather, supply, demand to market structure and geopolitics led to historically high prices which spilled over to other commodities. With the benefit of retrospective, energy crisis was at least partly manufactured by Russia in the effort to pursue its geopolitical goal with war against Ukraine. The Russian invasion on Ukraine led EU to take steps to halt its extremely high dependence on Russian commodities (40% natural gas, 25 % oil, 70 % thermal coal). Rising inflation forced central banks to start rising interest rates. This creates difficult environment for global economy, especially less well-off countries. Extremely high profits from oil and gas producers can create foundation for financing transition to economy based on renewable energy. JEL: P48, Q41, Q43 Keywords - Global Economy, European Union, Energy Crisis, Natural gas prices

Type : Research paper

Published : Volume-8,Issue-8

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