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Complexity economic indexes for the energy market: Evidence during extreme global changes

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  • Song, Pengcheng
  • Wang, Pang Paul
  • Zhang, Baozhen
  • Zhang, Xuan
  • Zong, Xiangyu

Abstract

This paper extends the complex economic index to measure the energy dependence of each country’s industrial structure, subject to the global trade framework. The Energy Dependence Competitiveness (EDC) Index and Energy Layout Complexity (ELC) Index are proposed, based on the Competitiveness and Economic Fitness (EF) algorithm. EDC reveals the industrial competitiveness of each country that relies on high energy-dependent industries. ELC reflects the fraction of energy-dependent industries involved in competitive industries. The empirical results show that EDC and ELC indices provide good explanations of economic performance, endowments and energy industries’ structure before, during and after the extreme change in the Energy Market in 2008.

Suggested Citation

  • Song, Pengcheng & Wang, Pang Paul & Zhang, Baozhen & Zhang, Xuan & Zong, Xiangyu, 2021. "Complexity economic indexes for the energy market: Evidence during extreme global changes," Energy Economics, Elsevier, vol. 96(C).
    • Handle: RePEc:eee:eneeco:v:96:y:2021:i:c:s0140988321000530
    DOI: 10.1016/j.eneco.2021.105148
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