Uncertainty in the energy sector and evolving energy mix: a Europe-Asia comparison

Economic development and pressures from emerging countries to increase their growth levels have redefined global energy consumption patterns, contributing to enhanced geopolitical frictions. At the global level, the energy mix remains highly dependent on fossil fuels, accounting for more than 80 percent of the energy mix, and with carbon-based energies remaining quite dominant since 2021, leading to significant environmental deterioration. The usage of gas has experienced a relative increase over time, particularly in West European countries. Furthermore, economic and political frictions between fossil fuels exporting and importing economies have been affected by significant shocks of a geopolitical nature that have contributed to significant levels of uncertainty and the aggravation of inflationary pressures, as experienced early in the 2020s resulting from the Global Health Crisis and the Russo-Ukranian War. The research core findings offer some evidence on energy policy becoming a political question that, since the 19th century has led to major disruptions and conflicts that might exacerbate as the global economy tries to identify a workable solution to phase out fossil fuels and to transition towards alternative energy resources that are mindful of the ongoing environmental erosion.