Navigating geopolitical crises for energy security: Evaluating optimal subsidy policies via a Markov switching DSGE model

• Main Authors: CHAN, Ying Tung, PUNZI, Maria Teresa, ZHAO, Hong
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2024
• Subjects: Energy resilience; Energy security; Geopolitical crises; MS-DSGE model; Optimal subsidy policy; Energy Policy; Finance and Financial Management
• Online Access: https://ink.library.smu.edu.sg/skbi/33; https://ink.library.smu.edu.sg/context/skbi/article/1032/viewcontent/NavigatingGeopoliticalCrises_av.pdf
• Institution: Singapore Management University

This paper aims to provide insights on the design of optimal subsidy policies to enhance energy security amidst energy disruptions triggered by geopolitical conflicts. We introduce a novel Markov switching dynamic stochastic general equilibrium (MS-DSGE) model to address the limitations of existing...