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Will monetary policy affect energy security? Evidence from Asian countries

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  • Wang, Ke
  • Wang, Yi-Wei
  • Wang, Quan-Jing

Abstract

This paper uses the System Generalized Moments (SYS-GMM) method to empirically analyze the data of 16 Asian countries from 2000 to 2019, and finds the impact of monetary policy on energy security. We conclude that the real interest rate, total reserve and exchange rate all have a positive impact on energy security, that is, when these three indicators decline, the risk of energy security increases, this reminds policymakers to pay close attention to the trend of energy security when implementing loose monetary policy. In addition, we also found that the relationship between monetary policy and energy security increased significantly after the 2008 financial crisis, and the more developed the economy is, the more likely it is to encounter energy security challenges brought about by changes in monetary policy. Overall, our evidences provide useful experience for the literature related to energy security.

Suggested Citation

  • Wang, Ke & Wang, Yi-Wei & Wang, Quan-Jing, 2022. "Will monetary policy affect energy security? Evidence from Asian countries," Journal of Asian Economics, Elsevier, vol. 81(C).
    • Handle: RePEc:eee:asieco:v:81:y:2022:i:c:s104900782200063x
    DOI: 10.1016/j.asieco.2022.101506
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    Cited by:

    1. Indre Siksnelyte-Butkiene, 2023. "Defining the Perception of Energy Security: An Overview," Economies, MDPI, vol. 11(7), pages 1-19, June.

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    More about this item

    Keywords

    Monetary policy; Energy saecurity; GMM;
    All these keywords.

    JEL classification:

    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy

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