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General information about the project

• • Competition 2016: NATIONAL PLAN FOR RESEARCH, DEVELOPMENT AND INNOVATION 2015-2020, NP III; Program DEVELOPING THE NATIONAL RESEARCG AND DEVELOPMENT SYSTEM, Sub-program HUMAN RESOURCES; Instrument RESEARCH PROJECTS TO STIMULATE YOUNG INDEPENDENT TEAMS

• Financing institution: UEFISCDI

• Title: The relationship between energy investments, shocks in energy prices and the macroeconomy in the EU countries

• Acronym: EIP-MACRO

• Code: PN-III-P1-1.1-TE-2016-0142

  • Principal investigator: Prof. Claudiu Albulescu

  • Institution: Politehnica University of Timisoara

Description / Summary

The energy prices, and especially the oil prices, considerably fluctuated during the last decade, increasing the uncertainty in the markets. The central role of energy prices in influencing the consumption and investments, but also the risks generated by their fluctuations for the accomplishment of the macroeconomic and monetary objectives,

recommend supplementary investigation. In this context, the present research project is developed on three research directions. First, we analyse the investment behaviour of energy sector companies. Using the AMADEUS statistics, our purpose is to see how the macroeconomic uncertainty and the shareholders structure influence the investment decisions. Second, we investigate the interaction between oil prices and the macroeconomy, considering the shocks in the fuel prices, and not in the international oil prices as previous studies did. More precisely, our aim is to see how do these shocks pass-through into inflation and exchange rate, in different monetary and exchange rate regimes. Third, we investigate the bi-directional causality between the structure of energy consumption and the business cycle. In this line, if the energy

consumption is diversified and the renewable sources represent an important percentage out of the total consumption, the economy is less exposed to shocks in international oil prices.