Increasing Energy Prices Research Articles

The Way Forward in the Energy Transition; Good Practices and Challenges at Wageningen University & Research

Reducing greenhouse gas (GHG) emissions due to changes in energy used in buildings is the most successful part of Wageningen University & Research’s (WUR) climate policy. In this article the authors evaluate sustainable energy measures and identify key success factors, based on internal documents, discussions with stakeholders, and relevant literature. The role of government and stakeholders has been important, as were the technical possibilities to take a major step with constructing the heat and cold storage on campus. Geopolitical factors also played a role, in particular the war in Ukraine, which increased energy prices, acutely reinforcing the need for energy savings. In addition to saving energy, WUR aims to contribute to the energy transition by generating green electricity with wind turbines and solar panels. Furthermore, electricity used from the grid is offset with wind energy through Dutch guarantees of origin (GVOs), allowing us to offset GHG emissions for electricity at zero. Yet, there are other reasons to save as much as possible on electricity use. In addition to environmental considerations, congestion of the electricity grid plays a role, which is largely associated with the energy transition. Looking ahead, we describe further potential energy reduction opportunities and related challenges. As described in the Rough Outline of WUR Energy Transition 2050 [1], WUR provides clear targets and possible sets of measures to achieve these targets. Challenges include the uncertainty surrounding technological solutions and the availability of funding. We recently expanded our carbon footprint to include Scope 3 emissions of purchased goods and services. An additional challenge is the reduction of implicit energy use through the purchasing chain.

Long-Term Effects of Thinning in Sub-Mountainous Thermophilic Sessile Oak (Quercus petraea Mill.) and European Beech (Fagus sylvatica L.) Coppices in the Croatian Dinarides

Coppicing has been neglected in recent decades, leaving gaps in knowledge on silvicultural interventions, especially the long-term effects on coppices of Southeast Europe. The recent economic crisis, the sudden increase in energy prices, and the increased demand for assorted wood products have initiated higher interest in coppices in Croatia. Thus, our work aims to define the long-term effects of thinning in sessile oak (Quercus petraea (Matt.) Liebl.) and European beech (Fagus sylvatica L.) sub-mountainous thermophilic low coppices in the Croatian Dinarides. The experiment includes two localities with thinning and control plots. Thinning was performed in 2002, with 17.71% of wood volume removed in the European beech coppice and 26.09% in the sessile oak coppice. In 2020, 1276 trees were marked, measured (DBH, tree height, number of stems per stump), and assessed for vitality, origin, and six silvicultural features revealing tree quality. In 2022, trees were again measured (DBH, tree height) to gain data on tree growth. Conventional data analysis methods were used. The results show a statistically significant positive long-term effect of thinning on tree growth, stem, and crown features and support findings that thinning, by increasing growth and quality, is a necessary intervention in European beech and sessile oak low coppices. Thinning promoted the healthiest and best quality trees/stems, resulting in a more valuable range of wood products and the potential for higher income. It had a positive impact on tree growth regardless of the tree’s origin (seed or stump) and improved the growth and quality of trees among the supporting tree species. Short-term effects of thinning in trial plots suggested that thinning supported tree species diversity, but this effect diminished over time, showing no positive effect after twenty years. The study points to the need for more frequent thinning in coppices to support tree species diversity (i.e., to allow growth to less competitive tree species) but underlines the need for further research.

The experiences of unpaid carers of people living with dementia during the cost-of-living crisis: A reflexive thematic analysis.

Some carers have reported struggling to manage the additional costs of caring for someone with dementia, which has negatively impacted upon their financial resilience. Since 2021, this has been compounded by the cost-of-living crisis experienced in the United Kingdom. This crisis has been driven by sharp increases in energy prices and the prices of everyday basics such as food. This study aimed to better understand how unpaid carers, supporting and co-habiting with people living with dementia, experience the cost-of-living crisis, and the impact this has on their ability to provide care for the person living with dementia. Eleven carers supporting and co-habiting with people living with dementia in England, took part in two semi-structured interviews approximately 3 months apart between November 2022 and February 2023. All transcripts were analysed using reflexive thematic analysis. Carers reported having to make difficult and sometimes drastic decisions in reaction to the cost-of-living crisis and the uncertainty of future cost-of-living increases, such as using blankets and extra lays of clothing for them and the person living with dementia in place of using the heating system in their home, going without food so their loved one can eat, or even missing social opportunities. Some carers described aspects which they felt mitigated some of the negative impact of the cost-of-living crisis, such as being able to draw upon financial resources or their local authority providing social events which included a heated space with food. The cost-of-living crisis has led to carers having to make difficult decisions which created worry and anxiety. Findings indicate that many carers need financial support, and it would be beneficial for free social events to be organised which provide a heated space and food, where carers and people living with dementia can socialise with others.

Rationalization of Energy Expenditure: Household Behavior in Poland

Background: The implementation of the EU climate and energy policy, along with changes in the legal environment, has led to a significant increase in energy prices in Poland. Consequently, energy expenditures are now a larger part of household budgets. These rising energy costs and the evolving legal landscape are compelling households to invest in energy-saving solutions and modify their energy consumption habits. This article aims to identify the activities of households in Poland regarding the rationalization of energy expenditures. It formulates the following research hypothesis: households invest in energy-saving appliances to rationalize energy expenditures and/or change their behaviors to reduce energy consumption. Methods: The paper is based on primary research conducted using an online questionnaire survey on a sample of 331 respondents in Poland in March and April 2023. Results: A classification tree algorithm was used to identify the level of investment activities and behavioral changes made by households to reduce energy expenditures. The authors found that low-income households and people who fear further energy price increases are the first of all to change their behaviors for more energy-efficient ones. Medium- and high-income households take investment measures. They replace household appliances with more energy-efficient ones and install heat pumps and photovoltaic panels. These investments are motivated by responsible consumption, environmental protection, cleanliness, and the ease of use of the appliances.

The influence of disruptive events on energy-related household practices: Results of a longitudinal study in the Netherlands

Household energy use relates to our socio-cultural identity, our socio-economic status and the socio-cultural and material contexts in which we live. Around the world, households experienced dramatic changes in light of the COVID-19 pandemic and the drastic increase of energy prices following the Russian invasion of Ukraine. Habits and routines were disrupted, reinterpreted, reorganized and renegotiated, albeit under constraints and in most cases involuntarily. This paper analyses how the practice of ‘keeping warm’ responds to disruptive events ranging from a small-scale and short-lived experiment to much more drastic and far-reaching geopolitical events. Following an initial study challenging households to reduce temperatures inside their homes during October/November 2018, the same households were revisited for follow-up questioning two and a half years after the start of the COVID-19 pandemic in Europe and six months after the attack of Russian armed forces on Ukraine. Quantitative and qualitative data were collected before, during, and three months as well as three years after the original ‘heating challenge’. The final follow-up survey took place in August 2022 and turned the initial short-lived Living Lab-based experiment into a longitudinal study.The experimental exploration of possibilities to reduce household energy use through the disruption of routinized practices in Living Labs enables an analysis of the effects of disruptive events, including the role of values, social norms, habits and routines (Sahakian et al., 2021). But what happens, when experiments get serious and large-scale upheaval affecting many challenges and changes meanings, thus contributing to changes in social norms and practices? This research explores lasting-changes in energy-related household practices following voluntary disruptive experimentation and subsequent involuntary disruptions. Compared to the macro-systemic disruptions experienced during the COVID-19 pandemic and the more recent energy crisis, the disruptions induced through the initial ‘heating challenge’ are of a much smaller magnitude. Our findings show that reductions in energy use are possible when routinized practices are disrupted through voluntary experimentation. In addition, our results indicate that the meanings tied up with indoor comfort had changed due to the initial experiment and that participants who initially experimented in an interactive community setting had learned more about how to connect, share experiences and reflections to adapt to other, also large-scale disruptions collaboratively.

Multi-objective scheduling for an energy-efficient flexible job shop problem with peak power constraint

Controlling electricity costs, which are closely related to the peak power reached, while simultaneously reducing completion time and energy consumption, is crucial for achieving sustainability in the manufacturing industry. However, most existing research on energy-efficient flexible job shop scheduling problems primarily focuses on optimizing completion time and energy consumption, often neglecting the critical aspect of controlling electricity costs. With decreasing resources and increasing energy prices, it is necessary to control electricity costs by limiting the peak power reached during production. To address this gap, this paper investigates an energy-efficient flexible job shop scheduling problem with peak power constraint considering setup and transportation time (EEFJSSP-PPST). We establish a mathematical model for EEFJSSP-PPST and propose an improved non-dominated sorting genetic algorithm II (INSGA-II) incorporating several key improvements. We first introduce three scheduling rules in decoding to optimize objectives and employ heuristic rules to generate a high-quality initial population. Then, we propose an innovative cluster crossover method to accelerate convergence and design an adaptive-based local optimization strategy to further enhance performance. Finally, our experiments explore the impacts of different degrees of the peak power constraint on objectives and evaluate the effectiveness of the three scheduling rules. Additionally, the performance of INSGA-II is tested using 135 benchmark instances. The results indicate that INSGA-II outperformed its variations without improvements, achieving the best hypervolume (HV) indicator in 80% of the instances and the best inverted generational distance (IGD) indicator in 68.89% of the instances. Compared to other state-of-the-art algorithms, INSGA-II achieves the best HV and IGD indicators in 82.2% and 81.5% of the instances, respectively, and demonstrates better convergence and a superior Pareto front. Therefore, we conclude that the improvements in INSGA-II are effective and enhance the algorithm’s performance, making it outstanding in solving EEFJSSP-PPST.

The downstream firm's decision over R&D for energy-saving

Although energy saving for a firm is very important, the R&D literature has rarely discussed this issue. This paper provides a vertically-related model to analyze how conducting energy-saving R&D affects the upstream firm's pricing decision and downstream firm's energy-saving and output decisions. We show that an increase in energy price may induce the downstream firm to purchase more energy, but less efficient R&D may not induce the downstream firm to purchase more energy. Moreover, more efficient R&D may not increase the energy price under the upstream monopoly case. Finally, social welfare may not improve when the upstream market becomes more competitive.

Oil Price and Energy Intensity Dynamics in Nigeria: Does Technical Change Matter?

It is critical to understand the mechanism needed to control energy intensity especially in an oilexporting country like Nigeria, because of its consequential effect on carbon dioxide emissions and environmental pollution. Increases in energy prices can lead to promotion of better technology and consequently, a reduction in energy intensity through a reduction in energy demand (consumption). This paper explores the dynamics between energy price and energy intensity to reveal the role of technical change in the equation. The study utilizes an autoregressive distributed lag (ARDL) and Toda-Yamamoto approaches. The study sample covers the period 1980 through 2021. The key contribution of this study to the literature is rooted in an understanding of the dynamics of energy intensity and its interplay with technical change in a country study as a critical piece of information for policymakers. The results indicate a change in oil price significantly affects technical innovation. However, there is no link between technical innovation and energy intensity. The plausible justification for the results is the enormity of oil subsidy policy of the Nigerian government.

Optimal Control Strategy for Power Management Control of an Independent Photovoltaic, Wind Turbine, Battery System with Diesel Generator

The need for a greater supply of energy from sustainable sources is growing because of increasing energy prices, concerns about nuclear power, climate change, and power grid disruptions. This research offers a method for the balance of power management of a combination of multi-source DC and AC supplier systems that enables sources of clean energy based on an independent grid to function economically and with the highest levels of system predictability and stability possible. The DC microgrid's hybrid generation source consists of a diesel power source, wind, photovoltaic (PV) power, and a battery bank. The energy system can fulfill the load demand for electricity at any moment by connecting various renewable sources. It can function both off and on the grid. The microgrid may occasionally not be able to provide sufficient electricity, while every green energy source's electricity contribution is based on how its supply varies and how much power is needed to meet demand. As a result, a diesel generator is required as additional backup power, particularly while operating off-grid. This paper designs and implements an MPPT technique for a PV system based on the GWO algorithm. By creating PWM pulses in response to variations in the PV panel voltage, this method modifies the converter's duty cycle, while wind turbines using MPPT based on P&O, to get the most out of hybrid energy sources that are renewable while simultaneously enhancing the quality of power. The priority sources of electricity for the grid are photovoltaics and wind power. Based on the results of simulations and experiments, the proposed control method for DC, which uses the MPPT approach, can dynamically switch between all of the system's various modes of operation, independent of the battery's condition or environment, ensuring safe operation and constant bus voltage. An analysis was conducted on the suggested system's performance. It has been noted that compared to the conventional approaches, the suggested GWO-based MPPT methodology is quicker and produces fewer MPP oscillations. It offers a more effective reaction to quickly shifting atmospheric conditions. Results of simulation for the recommended control scheme with MATLAB/Simulink.

RELATIONSHIP BETWEEN ENERGY AND FOOD PRICES IN THE EURO AREA

Over the past five years, global economic developments have been accompanied by a number of challenges. After a period of economic development, the global economy is facing a significant challenge caused by the COVID-19 crisis. There have been factory closures, border closures and supply chain disruptions. All this is reflected in the EU and the euro area. This was followed by a period of recovery and accelerating inflation. The war on the territory of Ukraine is also having a significant impact on inflationary processes. This further jeopardises the supply of energy resources and their prices begin to rise at a very high rate. The shock of rising energy prices has also been reflected in sharp increases in food prices. In the euro area, there have been periods when food prices have risen by more than 17% on an annual basis and energy products by almost 60% in some months. All these developments highlight the need to examine the links between energy and food prices. This is necessary in order to be able to take quick decisions in the event of new volatility in energy prices. The aim of the study is to establish a causal relationship between the dynamics of energy and food prices and the time lag over which food prices react to increases in energy prices. A correlation analysis is carried out and a causal relationship between the two indicators is established by regression analysis at different time lags. The hypothesis tested is that, over the last five years, there has been a strong month-to-month correlation between energy prices and food prices with a lag of six months. For the purpose of regression analysis and hypothesis testing, monthly data for food inflation and inflation for the group Electricity, gas and other fuels have been used. The data are taken from the structure of the Harmonised Index of Consumer Prices published by Eurostat. The detailed regression analysis shows that there is a statistically significant linear relationship between the price indices of the two product groups with a lag of six months. The Granger causality test confirms the results of the dynamic, correlation and regression analysis. The results of the test show not only the existence of a causal relationship, but also the ability of energy price changes to predict food price dynamics. All this leads to the conclusion that in periods of significant changes in energy prices, food prices can be expected to follow similar dynamics within six months. This relationship could be used both for forecasting and for taking specific economic measures.

The impact of energy prices in decarbonizing buildings’ energy use in the EU27

The recent surge in end-use energy prices in the EU has intensified the debate on how price signals influence the decarbonization of the building sector, a key contributor to global energy consumption and emissions. This study investigates the role of energy price signals in driving the decarbonization of the EU-27 building sector using the Invert/EE-Lab model to simulate various scenarios up to 2050. The analysis examines the elasticity of energy demand, particularly how different price scenarios impact investment decisions in energy-related technologies. The findings reveal that a 10 % increase in energy prices can lead to a reduction in energy demand by up to 3 %, depending on the scenario. Furthermore, price elasticity varies across different policy and price settings, with stricter regulations resulting in lower elasticity. The results underscore that while stringent regulatory measures can achieve significant energy savings and reduce greenhouse gas emissions, they also limit the responsiveness to price signals, with heat pump shares reaching 47–86 % in high-efficiency scenarios. Conversely, more moderate policy measures increase price elasticity, leading to 15–55 % heat pump shares. This study highlights the importance of better understanding price elasticity in energy modeling to project better the outcomes of policy interventions aimed at achieving a low-carbon energy system.

Household welfare loss from energy price crisis: Evidence from China

The war in Ukraine and associated 2022 energy crisis had far-reaching effects. The energy price crisis causes varying degrees of households' welfare losses by directly increasing energy prices and indirectly increasing product costs along the supply chain. This impact is particular significant for developing countries and emerging economies with a large concentration of middle and low-income groups. In this study, we utilize a multiregional input-output (MRIO) model and micro-household consumption spending figures to simulate the effects of rising fuel costs, both directly and indirectly, on 24 expenditure segments in China. According to the energy prices schema, we find increased energy burdens deteriorate household welfare. In a dire scenario of a 50% increase in energy prices, 11.35% of households will fall into energy poverty because of a disproportionately high share of visible energy consumption, raising China's energy poverty rate from 11.61% to 22.96%. Residual impacts are passed on to households by raising the cost of producing goods, resulting in higher indirect energy consumption, and ultimately leading to a significant increase in the inequality of households' real incomes excluding energy consumption. Further analysis shows that it is more cost-effective to provide subsidies to relatively poor households for the consumption of various commodities, with subsidies for food, healthcare and medical services, and housing expenses being the most effective, than direct subsidization of energy prices by the government to reduce household welfare losses. The major findings of this study emphasize the impact of energy security challenges in household sector, that helps to assess the negative impact of the Russian-Ukrainian conflict on energy securities of emerging economies.

Development of Energy Poverty and Its Solutions through the Use of Renewables: The EU Case with a Focus on Slovakia

The problem of energy poverty (EP), when energy becomes unaffordable for some population groups, is not only a problem for developing countries, but this phenomenon is appearing more and more often in European countries. In Europe, it is estimated that 50 to 125 million people are living in energy poverty. We hear more and more about energy poverty in connection with the current energy crisis and rising energy prices, but also because of insufficient renewable use. Due to increasing energy prices, we are increasingly hearing about the deepening energy poverty in Slovakia. This study aims to evaluate the development of energy poverty in Slovakia compared to other EU countries. The situation is studied from the view of the number of heating and cooling days, the percentage of the population that cannot maintain adequate heat at home, the percentage of the population that lacks heat, and the percentage of residents without enough heat. During the research, we used distribution analysis, trend analysis, analysis of variance, and one-way analysis. The main results show that the heating degree days (HDD) index recorded a decrease, the cooling degree days (CDD) index recorded an increase, and energy poverty is most obvious in a low-income group of inhabitants, having shortage of heat, when renewable energy sources (RES) use contributes to the mitigation of energy poverty. Solving the unfavorable situation of energy poverty is possible by increasing the share of renewables used in the gross final energy consumption for heating and cooling, primarily in residential buildings. The results provide information for policymakers regarding the triple bottom line approach (people, planet, and profit).

Examining the Nexus of Energy Prices, Fossil Use, Efficiency, Technology export, and Environmental Quality: A Novel Analysis of the Top 10 Economies with the Highest Annual Increase in Energy Prices (1990-2021)

This study investigates environmental quality for the top 10 economies with the highest average annual increase in energy prices over the period 1990-2021. For this purpose, the interdependence between energy prices, energy efficiency, fossil fuel consumption, medium-high technology exports, and CO2 emissions is investigated with annual data in the period 1990-2021. Slope heterogeneity and cross-section dependence were taken into account in the empirical analysis. Durbin-Hausman cointegration test and CCEMG estimator were used as methods. The findings showed that for the top 10 economies, higher energy prices and fossil fuel consumption increased environmental damage. Energy efficiency and more technology exports increase environmental quality. The study findings are new as this specific combination of variables for these top 10 countries has not been studied before

The interconnectedness and spillover effects among economic uncertainty, energy-related risks and sovereign risk in BRICS economies

ABSTRACT Emerging economies experiencing energy-intensive growth face increased energy price volatility, which could fuel macroeconomic instability with possible implications on their debt repayment capacity. This study implements a quantile vector autoregressive model on a dataset collected between April 2011 and July 2024 to examine the interplay among economic uncertainty, energy-related risks and sovereign risk in BRICS economies. The empirical results show these risk factors exhibit strong interconnectedness under low- and high-risk profiles. Under a low-risk profile, energy risks are transmitters in all countries except Russia and India. Sovereign risk receives shocks in Brazil, India and South Africa but transmits shocks in Russia and China, whereas economic risk is a shock transmitter in South Africa and India and plays the receiver role in Brazil, Russia and China. In high-risk conditions, economic risk is a shock transmitter in Russia and India but receives shocks in Brazil, China, and South Africa; Sovereign risk receives shocks in all countries except China while energy risk is a transmitter across countries except Russia. Therefore, the dynamics of the studied risks are driven by individual country heterogeneities including risk profile, economic structure, market conditions and energy trade status. Policymakers should combine energy, economic and debt management policies to promote economic stability and build crisis resilience. In conclusion, debt management and investment in renewable energy are alternative policy instruments to promote creditworthiness in emerging countries.

Energy price increases and mitigation policies: Redistributive effects on Italian households

Between July 2021 and March 2023, the Italian government took action to support households’ and individuals’ incomes to help them cope with the exceptional energy and food prices surge, by means of both tariff and income-based fiscal policy measures. In this paper, we perform a microsimulation exercise to quantify the effects of the price increases and of the policy interventions on household expenditure and income. Our results indicate that the regressive impact of the price rises was mitigated by the fiscal measures, which also succeeded in reducing inequality, at risk of poverty and energy poverty. Furthermore, we observe the relevant role of income-based measures in the South of the country.

The analysis of electricity consumption in Kazakhstan

The energy sector is a fundamental element of the economic structure of any state, determining its sustainability, competitiveness and ability to innovate. In this context, Kazakhstan, which has significant reserves of hydrocarbons, energy sources and renewable properties, finds itself at the crossroads of solving issues of energy policy, innovation and sustainable development. The electricity sector is a priority resource necessary to maintain the economic security of the country. This is relevant due to the rapid growth of industrial production and demography in order to maintain increasing demand and increase electricity generation in the country. The purpose of this scientific work is focused on the economic analysis of electricity generation and consumption, as well as the identification of shortcomings and the proposal of recommendations to ensure the sustainable development of the energy sector in Kazakhstan. Using the scientific method of analysis, the study aims to identify trends that determine the level of electricity consumption in the country, as well as to offer recommendations for the sustainable and effective development of this industry. The article is a valuable contribution to strengthening and modernizing the energy system of the country. The results of the research are: the current state of Kazakhstani energy sector is revealed against the background of anti-Russian sanctions, increased energy prices and global uncertainty; a comparative analysis of electricity production is carried out; an economic assessment of primary and final energy consumption from 2015 to 2023 was carried out; the reasons for changes in electricity generation and consumption from the perspective of industrial and consumer demand growth were substantiated; shortcomings were revealed and proposals were made to improve the development and consumption of electricity in the republic. The results obtained have significant potential to initiate certain transformations in the energy sector of Kazakhstan. The article is a scientific work contributing to the development of theory and practice in the field of energy in Kazakhstan. This research contributes to the further development of energy consumption and improvement of the country's energy infrastructure, ensuring its sustainability and competitiveness in the long term.

Intelligent Buildings and Their Use in Aerospace Industry

The article discusses about intelligent buildings in aviation industry. In the introduction the term of intelligent buildings for basic understanding of the issues is defined. The definition of intelligent building can be different by/ based on a lot of criteria. For that purpose, the first part contains fundamental concepts of definition. The aviation industry is considered to be one of the first which uses knowledge and innovative solutions. Currently, the most frequently solved issues are relating to the need for security, increasing energy prices and the increasing environmental awareness. Next part gives essential information about airports around the world which are among the first of all in the concept of green energy. The last part is the most important part for the fulfilment of the main aim of the research. This section contains the current technological options available at airports and their applicability under current conditions. The aim is the analysis of the energy performance of buildings at the airport and the suggestion of relevant opportunities for saving electricity. Suggestions are listed for improving energy intensity also with specific advantages and disadvantages.

The Role of Energy Cooperatives in Ensuring the Energy and Economic Security of Polish Municipalities

In recent years, negative phenomena of an external and internal nature have been observed that threaten the security of Polish municipalities. The increase in energy prices had a negative impact on the situations of consumers and companies. Strengthening energy security can be achieved through the development of an energy community based on renewable energy. The aim of the article is to demonstrate that energy cooperatives have a negligible impact on the energy and economic security of Polish municipalities. The article is based on literature studies and analysis of data obtained from the National Center for Agricultural Support and the Central Statistical Office, as well as our own qualitative research. Based on the research, three hypotheses were formulated: Firstly, energy cooperatives participate to a limited extent in building local energy security. Secondly, cooperatives should be treated as a complement to coal power plants. Thirdly, only the involvement of municipal authorities in the energy cooperatives can strengthen local energy security. The research shows that there has been a quantitative development of energy cooperatives, but this has not significantly improved local energy security. Only the active participation of local authorities is a condition for strengthening the role of energy cooperatives in ensuring economic and energy security.

Economic Effects of rising Energy Prices

Abstract Energy is an indispensable resource for everyday activities, both for the population and for economic operators. Being used for heating, cooling, and lighting buildings, driving, and putting into operation various machines, energy is essential for the entire economy. Since energy is a central element of human activity and energy prices are the quasi-permanent component in most costs, its price can be called "the most important price in the economy". The topic of the research is a highly relevant issue for both financial and energy sectors. The research aims to identify and analyse the economic effects of energy price increases. Among the proposed objectives are: to gain in-depth knowledge of the scientific background of the subject under investigation; to determine the role of energy in a country's economy; and to determine the economic and social consequences of energy crises. Using the qualitative research method, this article is the result of an integrative consultation of a large, rich, and recent scientific literature. To achieve the established objectives, official documents of the European Commission and the United Nations, reports of the International Monetary Fund, the European Central Bank, and the National Bank of Romania, academic articles and studies elaborated by various prestigious think tanks were studied. The first part of the paper briefly outlines the importance of energy for a country's economy. The second part reviews the scientific literature, thus illustrating the distinct opinions of various experts in the field. The third part presents the economic effects of energy crises and analyses the impact of rising energy prices on inflation and economic activity from a theoretical perspective.