IDEAS home Printed from https://ideas.repec.org/a/aea/apandp/v113y2023p43-46.html
   My bibliography  Save this article

Sectoral Shocks and the Role of Market Integration: The Case of Natural Gas

Author

Listed:
  • Silvia Albrizio
  • John Bluedorn
  • Christoffer Koch
  • Andrea Pescatori
  • Martin Stuermer

Abstract

We quantify how market integration affects the economic propagation of sectoral supply shocks at the example of a Russian gas shutoff to the European Union. An open-economy, multisector general equilibrium model suggests that the adverse output impact on the European Union shrinks fourfold if integration with the global liquified natural gas (LNG) market is considered. On the flip side, other LNG importers also see adverse output effects. Due to nonlinearities, the combined total economic damage is less than half with integration, compared to the counterfactual case without. Governments should foster further integration to make economies more resilient to supply shocks.

Suggested Citation

  • Silvia Albrizio & John Bluedorn & Christoffer Koch & Andrea Pescatori & Martin Stuermer, 2023. "Sectoral Shocks and the Role of Market Integration: The Case of Natural Gas," AEA Papers and Proceedings, American Economic Association, vol. 113, pages 43-46, May.
    • Handle: RePEc:aea:apandp:v:113:y:2023:p:43-46
    DOI: 10.1257/pandp.20231045
    as

    Download full text from publisher

    File URL: https://www.aeaweb.org/doi/10.1257/pandp.20231045
    Download Restriction: no
    File URL: https://www.aeaweb.org/doi/10.1257/pandp.20231045.ds
    Download Restriction: Access to full text is restricted to AEA members and institutional subscribers.
    File URL: https://libkey.io/10.1257/pandp.20231045?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Colin Baget & Guillaume Gaulier & Juan Carluccio & Arthur Stalla-Bourdillon & Jean-Baptiste Gossé & Florian Le Gallo & Aymeric Schneider, 2024. "The gas price shock: never again? [Choc gazier : plus jamais ça ?]," Bulletin de la Banque de France, Banque de France, issue 252.
    2. Alessandro D'Orazio & Fabrizio Ferriani & Andrea Gazzani, 2024. "Geoeconomic fragmentation and firms' financial performance," Questioni di Economia e Finanza (Occasional Papers) 844, Bank of Italy, Economic Research and International Relations Area.

    More about this item

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F15 - International Economics - - Trade - - - Economic Integration
    • F51 - International Economics - - International Relations, National Security, and International Political Economy - - - International Conflicts; Negotiations; Sanctions
    • L95 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Gas Utilities; Pipelines; Water Utilities
    • P28 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Natural Resources; Environment
    • P33 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions - - - International Trade, Finance, Investment, Relations, and Aid
    • Q35 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Hydrocarbon Resources

    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:aea:apandp:v:113:y:2023:p:43-46. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Michael P. Albert (email available below). General contact details of provider: https://edirc.repec.org/data/aeaaaea.html .

    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.