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Assessing economies' resilience of international liquefied natural gas trade network in the presence of the ripple effect

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  • Zhu, Min
  • Dong, Peiwu
  • Ju, Yanbing
  • Fu, Zhengtang

Abstract

In the International Natural Gas Trade Network (INGTN), global trade disruptions are caused by fluctuations in major exporters' supply quantities, with economies' capacities for resistance and recovery being crucial. The resilience of economies within the INGTN is assessed using an indicator system based on robustness and recoverability. Economies are classified into four groups according to their robustness and recoverability thresholds. The results of simulations reveal that import volumes decrease significantly after the fifth step, with economies demonstrating higher robustness and recoverability experiencing smaller fluctuations. Economies with both high robustness and recoverability show the highest resilience, while those with both low thresholds exhibit the lowest. Among economies where one value is high and the other is low, those with higher recoverability show better resilience. These findings emphasize the importance of enhancing import competitiveness, particularly for economies with lower recoverability, to improve their ability to withstand external shocks. By applying these insights, economies can better prepare for and mitigate the impacts of supply shocks, thus maintaining stability in global trade.

Suggested Citation

  • Zhu, Min & Dong, Peiwu & Ju, Yanbing & Fu, Zhengtang, 2024. "Assessing economies' resilience of international liquefied natural gas trade network in the presence of the ripple effect," Energy, Elsevier, vol. 313(C).
    • Handle: RePEc:eee:energy:v:313:y:2024:i:c:s0360544224032675
    DOI: 10.1016/j.energy.2024.133491
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