IDEAS home Printed from https://ideas.repec.org/a/eee/enepol/v204y2025ics0301421525001879.html
   My bibliography  Save this article

How do environmental concerns and global economic conditions affect energy prices?

Author

Listed:
  • Ben Jabeur, Sami
  • Boubaker, Sabri
  • Carmona, Pedro
  • Stef, Nicolae

Abstract

The price of oil can be a catalyst for the transition to a low-carbon economy as it may encourage households, firms, and local authorities to adopt a greener behavior. However, anticipating the mechanisms that drive oil price fluctuations is difficult. The oil market represents a complex system where different components can be subject to nonlinear dynamics that affect the system's structure. In this framework of the complexity theory, we utilized the quantification of asymmetric dependence (qad) method and fuzzy set qualitative comparative analysis (fsQCA) to investigate the simultaneous impact of different factors on the monthly crude oil price. Our findings reveal that a combination of conditions – including strong global economic conditions, low awareness about climate change concerns, and minimal change in global surface temperature – is strongly linked to higher crude oil prices. Additionally, the fsQCA analysis identified three major conditions that are necessary to attain a high level of oil price, namely improved global economic conditions (1), low levels of geopolitical risks (2), and low levels of real interest rate (3). This paper highlights how policymakers, financial institutions, and analysts could use fsQCA to assess the simultaneous influence of independent factors on Brent trading prices.

Suggested Citation

  • Ben Jabeur, Sami & Boubaker, Sabri & Carmona, Pedro & Stef, Nicolae, 2025. "How do environmental concerns and global economic conditions affect energy prices?," Energy Policy, Elsevier, vol. 204(C).
    • Handle: RePEc:eee:enepol:v:204:y:2025:i:c:s0301421525001879
    DOI: 10.1016/j.enpol.2025.114680
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0301421525001879
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.enpol.2025.114680?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
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    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:eee:enepol:v:204:y:2025:i:c:s0301421525001879. 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: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/enpol .

    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.