IDEAS home Printed from https://ideas.repec.org/a/eco/journ2/2021-04-65.html
   My bibliography  Save this article

Consequences of Oil Supply and Demand on the Electricity Market: Coronavirus Effect

Author

Listed:
  • Xenia Tabachkova

    (Financial University under the Government of the Russian Federation, Moscow, Russia.)

Abstract

The coronavirus epidemic has dealt a serious blow to many sectors of the economy around the globe. The energy sector has dropped significantly and has been affected during the pandemic. The issue of prices for energy products and its production has become aggravated, which has become a test for energy ministries. In this article, it examined the situations in the energy sectors of Europe and Russia as an energy giant. It is difficult at the moment to determine all the impacts that the coronavirus epidemic will have on the electricity sector. The paper found some effects on financial markets in the short term, and others in the longer term. Intuitively, we can already draw the outlines. Electricity is a basic good and as with any public service, it is subject to three principles: continuity, equality of treatment and adaptability. It is the first of them that is vital here. There is no fear on that side, as the operators (EDF, RTE and Enedis) have plans which ensure that nuclear and thermal power plants will maintain their operation - even with 40% absenteeism in the event of a peak of epidemic - and that the networks will be up and running. Priority is given to operational agents, who operate the power plants and repair the power lines.

Suggested Citation

  • Xenia Tabachkova, 2021. "Consequences of Oil Supply and Demand on the Electricity Market: Coronavirus Effect," International Journal of Energy Economics and Policy, Econjournals, vol. 11(4), pages 573-580.
  • Handle: RePEc:eco:journ2:2021-04-65
    as

    Download full text from publisher

    File URL: https://www.econjournals.com/index.php/ijeep/article/download/11342/5957
    Download Restriction: no

    File URL: https://www.econjournals.com/index.php/ijeep/article/view/11342/5957
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Puri, Munish & Abraham, Reinu E. & Barrow, Colin J., 2012. "Biofuel production: Prospects, challenges and feedstock in Australia," Renewable and Sustainable Energy Reviews, Elsevier, vol. 16(8), pages 6022-6031.
    2. Robert B. Barsky & Lutz Kilian, 2004. "Oil and the Macroeconomy Since the 1970s," Journal of Economic Perspectives, American Economic Association, vol. 18(4), pages 115-134, Fall.
    3. Alexey Yurievich Mikhaylov, 2018. "Pricing in Oil Market and Using Probit Model for Analysis of Stock Market Effects," International Journal of Energy Economics and Policy, Econjournals, vol. 8(2), pages 69-73.
    4. An, Jaehyung & Mikhaylov, Alexey & Jung, Sang-Uk, 2021. "A Linear Programming approach for robust network revenue management in the airline industry," Journal of Air Transport Management, Elsevier, vol. 91(C).
    5. Vieira, Filomeno M. & Moura, Pedro S. & de Almeida, Aníbal T., 2017. "Energy storage system for self-consumption of photovoltaic energy in residential zero energy buildings," Renewable Energy, Elsevier, vol. 103(C), pages 308-320.
    6. van Amano, Robert A & Norden, Simon, 1998. "Exchange Rates and Oil Prices," Review of International Economics, Wiley Blackwell, vol. 6(4), pages 683-694, November.
    7. Backus, David K. & Crucini, Mario J., 2000. "Oil prices and the terms of trade," Journal of International Economics, Elsevier, vol. 50(1), pages 185-213, February.
    8. Christiane Baumeister & Gert Peersman, 2013. "Time-Varying Effects of Oil Supply Shocks on the US Economy," American Economic Journal: Macroeconomics, American Economic Association, vol. 5(4), pages 1-28, October.
    9. Masini, Andrea & Menichetti, Emanuela, 2012. "The impact of behavioural factors in the renewable energy investment decision making process: Conceptual framework and empirical findings," Energy Policy, Elsevier, vol. 40(C), pages 28-38.
    10. Zhang, Xiao & Li, Hong-Yi & Deng, Zhiqun Daniel & Ringler, Claudia & Gao, Yang & Hejazi, Mohamad I. & Leung, L. Ruby, 2018. "Impacts of climate change, policy and Water-Energy-Food nexus on hydropower development," Renewable Energy, Elsevier, vol. 116(PA), pages 827-834.
    11. Trainer, Ted, 2012. "Can Australia run on renewable energy? The negative case," Energy Policy, Elsevier, vol. 50(C), pages 306-314.
    12. Sommerfeld, Jeff & Buys, Laurie & Vine, Desley, 2017. "Residential consumers’ experiences in the adoption and use of solar PV," Energy Policy, Elsevier, vol. 105(C), pages 10-16.
    13. Maurizio Michael Habib & Sascha Bützer & Livio Stracca, 2016. "Global Exchange Rate Configurations: Do Oil Shocks Matter?," IMF Economic Review, Palgrave Macmillan;International Monetary Fund, vol. 64(3), pages 443-470, August.
    14. Andrea Masini & E. Menichetti, 2012. "The impact of behavioural factors in the renewable energy investment decision making process: Conceptual framework and empirical findings," Post-Print hal-00651706, HAL.
    15. Olatomiwa, Lanre & Mekhilef, Saad & Ismail, M.S. & Moghavvemi, M., 2016. "Energy management strategies in hybrid renewable energy systems: A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 62(C), pages 821-835.
    16. Stoppato, A., 2008. "Life cycle assessment of photovoltaic electricity generation," Energy, Elsevier, vol. 33(2), pages 224-232.
    17. Valeriia Denisova & Alexey Mikhaylov & Evgeny Lopatin, 2019. "Blockchain Infrastructure and Growth of Global Power Consumption," International Journal of Energy Economics and Policy, Econjournals, vol. 9(4), pages 22-29.
    18. Barbour, Edward & Parra, David & Awwad, Zeyad & González, Marta C., 2018. "Community energy storage: A smart choice for the smart grid?," Applied Energy, Elsevier, vol. 212(C), pages 489-497.
    19. Romanach, Lygia & Carr-Cornish, Simone & Muriuki, Grace, 2015. "Societal acceptance of an emerging energy technology: How is geothermal energy portrayed in Australian media?," Renewable and Sustainable Energy Reviews, Elsevier, vol. 42(C), pages 1143-1150.
    20. Prasad, Abhnil A. & Taylor, Robert A. & Kay, Merlinde, 2017. "Assessment of solar and wind resource synergy in Australia," Applied Energy, Elsevier, vol. 190(C), pages 354-367.
    21. Yusaf, Talal & Goh, Steven & Borserio, J.A., 2011. "Potential of renewable energy alternatives in Australia," Renewable and Sustainable Energy Reviews, Elsevier, vol. 15(5), pages 2214-2221, June.
    22. Wustenhagen, Rolf & Wolsink, Maarten & Burer, Mary Jean, 2007. "Social acceptance of renewable energy innovation: An introduction to the concept," Energy Policy, Elsevier, vol. 35(5), pages 2683-2691, May.
    23. McDonagh, Shane & O'Shea, Richard & Wall, David M. & Deane, J.P. & Murphy, Jerry D., 2018. "Modelling of a power-to-gas system to predict the levelised cost of energy of an advanced renewable gaseous transport fuel," Applied Energy, Elsevier, vol. 215(C), pages 444-456.
    24. Yuriy Román-Leshkov & Christopher J. Barrett & Zhen Y. Liu & James A. Dumesic, 2007. "Production of dimethylfuran for liquid fuels from biomass-derived carbohydrates," Nature, Nature, vol. 447(7147), pages 982-985, June.
    25. Igor Martek & M. Reza Hosseini & Asheem Shrestha & Edmundas Kazimieras Zavadskas & Stewart Seaton, 2018. "The Sustainability Narrative in Contemporary Architecture: Falling Short of Building a Sustainable Future," Sustainability, MDPI, vol. 10(4), pages 1-18, March.
    26. Dayong Nie & Elena Panfilova & Vadim Samusenkov & Alexey Mikhaylov, 2020. "E-Learning Financing Models in Russia for Sustainable Development," Sustainability, MDPI, vol. 12(11), pages 1-14, May.
    27. Anthony Msafiri Nyangarika & Alexey Yurievich Mikhaylov & Bao-jun Tang, 2018. "Correlation of Oil Prices and Gross Domestic Product in Oil Producing Countries," International Journal of Energy Economics and Policy, Econjournals, vol. 8(5), pages 42-48.
    28. Uyeh Daniel Dooyum & Alexey Mikhaylov & Igor Varyash, 2020. "Energy Security Concept in Russia and South Korea," International Journal of Energy Economics and Policy, Econjournals, vol. 10(4), pages 102-107.
    29. Anthony Nyangarika & Alexey Mikhaylov & Ulf Henning Richter, 2019. "Oil Price Factors: Forecasting on the Base of Modified Auto-regressive Integrated Moving Average Model," International Journal of Energy Economics and Policy, Econjournals, vol. 9(1), pages 149-159.
    30. Musa, S. Danlami & Zhonghua, Tang & Ibrahim, Abdullateef O. & Habib, Mukhtar, 2018. "China's energy status: A critical look at fossils and renewable options," Renewable and Sustainable Energy Reviews, Elsevier, vol. 81(P2), pages 2281-2290.
    31. Alexey Mikhaylov & Nikita Moiseev & Kirill Aleshin & Thomas Burkhardt, 2020. "Global climate change and greenhouse effect," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 7(4), pages 2897-2913, June.
    32. Rajesh, R. & Carolin Mabel, M., 2015. "A comprehensive review of photovoltaic systems," Renewable and Sustainable Energy Reviews, Elsevier, vol. 51(C), pages 231-248.
    33. Alexey Yurievich Mikhaylov, 2018. "Volatility Spillover Effect between Stock and Exchange Rate in Oil Exporting Countries," International Journal of Energy Economics and Policy, Econjournals, vol. 8(3), pages 321-326.
    34. Jaehyung An & Alexey Mikhaylov & Nikita Moiseev, 2019. "Oil Price Predictors: Machine Learning Approach," International Journal of Energy Economics and Policy, Econjournals, vol. 9(5), pages 1-6.
    35. Alexey Mikhaylov, 2019. "Oil and Gas Budget Revenues in Russia after Crisis in 2015," International Journal of Energy Economics and Policy, Econjournals, vol. 9(2), pages 375-380.
    36. Alexei Yumashev & Beata Ślusarczyk & Sergey Kondrashev & Alexey Mikhaylov, 2020. "Global Indicators of Sustainable Development: Evaluation of the Influence of the Human Development Index on Consumption and Quality of Energy," Energies, MDPI, vol. 13(11), pages 1-13, June.
    37. Jaehyung An & Alexey Mikhaylov & Sang-Uk Jung, 2020. "The Strategy of South Korea in the Global Oil Market," Energies, MDPI, vol. 13(10), pages 1-8, May.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ivan Udalov, 2021. "The Transition to Renewable Energy Sources as a Threat to Resource Economies," International Journal of Energy Economics and Policy, Econjournals, vol. 11(3), pages 460-467.
    2. Pavel Baboshkin, 2020. "Strategic Energy Partnership between Russia and China," International Journal of Energy Economics and Policy, Econjournals, vol. 10(5), pages 158-163.
    3. Jaehyung An & Alexey Mikhaylov & Nikita Moiseev, 2019. "Oil Price Predictors: Machine Learning Approach," International Journal of Energy Economics and Policy, Econjournals, vol. 9(5), pages 1-6.
    4. Thomas Burkhardt & Diana Stepanova & Leonid Ratkin & Ismail Ismailov & Oleg Lavrushin & Natalia Sokolinskaya & Mir Sayed Shah Danish & Tomonobu Senjyu & Serhat Yuksel & Hasan Dincer, 2021. "Introduction of Biofuels as a Way of Solving Ecological Problems," International Journal of Energy Economics and Policy, Econjournals, vol. 11(2), pages 187-193.
    5. Mikhail Bondarev, 2020. "Energy Consumption of Bitcoin Mining," International Journal of Energy Economics and Policy, Econjournals, vol. 10(4), pages 525-529.
    6. Fe Amor Parel Gudmundsson & Sergey Prosekov & Natalia Sokolinskaya & Sergey Tarakanov & Evgeniy Lopatin, 2020. "Factors of the Formation of Modern Energetic Reality in North Western Europe," International Journal of Energy Economics and Policy, Econjournals, vol. 10(4), pages 539-544.
    7. Jaehyung An & Mikhail Dorofeev & Shouxian Zhu, 2020. "Development of Energy Cooperation between Russia and China," International Journal of Energy Economics and Policy, Econjournals, vol. 10(1), pages 134-139.
    8. Uyeh Daniel Dooyum & Alexey Mikhaylov & Igor Varyash, 2020. "Energy Security Concept in Russia and South Korea," International Journal of Energy Economics and Policy, Econjournals, vol. 10(4), pages 102-107.
    9. Xenia Tabachkova & Sergey Prosekov & Natalia Sokolinskaya, 2020. "Energy System Structure in Russian Arctic: Coal Production Forecast," International Journal of Energy Economics and Policy, Econjournals, vol. 10(3), pages 476-481.
    10. Artur Meynkhard, 2020. "Priorities of Russian Energy Policy in Russian-Chinese Relations," International Journal of Energy Economics and Policy, Econjournals, vol. 10(1), pages 65-71.
    11. Anthony Nyangarika & Alexey Mikhaylov & Ulf Henning Richter, 2019. "Influence Oil Price towards Macroeconomic Indicators in Russia," International Journal of Energy Economics and Policy, Econjournals, vol. 9(1), pages 123-129.
    12. Anton Lisin, 2020. "Biofuel Energy in the Post-oil Era," International Journal of Energy Economics and Policy, Econjournals, vol. 10(2), pages 194-199.
    13. Anthony Nyangarika & Alexey Mikhaylov & Ulf Henning Richter, 2019. "Oil Price Factors: Forecasting on the Base of Modified Auto-regressive Integrated Moving Average Model," International Journal of Energy Economics and Policy, Econjournals, vol. 9(1), pages 149-159.
    14. Vladislav Trubnikov & Ulf Henning Richter, 2020. "China Energy Policy: Evidence of China-Russia Cooperation," International Journal of Energy Economics and Policy, Econjournals, vol. 10(1), pages 145-149.
    15. Valeriia Denisova, 2019. "Energy Efficiency as a Way to Ecological Safety: Evidence From Russia," International Journal of Energy Economics and Policy, Econjournals, vol. 9(5), pages 32-37.
    16. Evgeniy Lopatin, 2019. "Methodological Approaches to Research Resource Saving Industrial Enterprises," International Journal of Energy Economics and Policy, Econjournals, vol. 9(4), pages 181-187.
    17. A. Mikhailov Yu. & D. Burakov B. & V. Didenko Yu. & А. Михайлов Ю. & Д. Бураков В. & В. Диденко Ю., 2019. "Взаимосвязь цен на нефть и макроэкономических показателей в России // Relationship between Oil Price and Macroeconomic Indicators in Russia," Финансы: теория и практика/Finance: Theory and Practice // Finance: Theory and Practice, ФГОБУВО Финансовый университет при Правительстве Российской Федерации // Financial University under The Government of Russian Federation, vol. 23(2), pages 105-116.
    18. Jo o Marcos Mott Pavanelli & Alexandre Toshiro Igari, 2019. "Institutional Reproduction and Change: An Analytical Framework for Brazilian Electricity Generation Choices," International Journal of Energy Economics and Policy, Econjournals, vol. 9(5), pages 252-263.
    19. Gnimassoun, Blaise & Joëts, Marc & Razafindrabe, Tovonony, 2017. "On the link between current account and oil price fluctuations in diversified economies: The case of Canada," International Economics, Elsevier, vol. 152(C), pages 63-78.
    20. Pavel Baboshkin & Mafura Uandykova, 2021. "Multi-source Model of Heterogeneous Data Analysis for Oil Price Forecasting," International Journal of Energy Economics and Policy, Econjournals, vol. 11(2), pages 384-391.

    More about this item

    Keywords

    COVID; Energy; Electricity; Oil; Demand;
    All these keywords.

    JEL classification:

    • E37 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Forecasting and Simulation: Models and Applications
    • F20 - International Economics - - International Factor Movements and International Business - - - General
    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eco:journ2:2021-04-65. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Ilhan Ozturk (email available below). General contact details of provider: http://www.econjournals.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.