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- Title
ВТОРИЧНИ ФАКТОРИ ЗА ФОРМИРАНЕ НА ЦЕНИТЕ НА ЕНЕРГИЙНИТЕ РЕСУРСИ И РОЛЯТА НА ТЕЗИ ФАКТОРИ В НАСТОЯЩАТА ЕНЕРГИЙНА КРИЗА.
- Authors
Димитрова, Ивелина
- Abstract
Energy is a key sector of the economy that greatly affects the welfare of the whole society and without it, economic prosperity cannot be achieved. Considered the fact that energy prices have an immediate impact on the economic stability and the inflation and thus they greatly affect the incomes of the population, they have always been a primordial concern for the governments all over the world. Secondary factors, not directly connected to the production and distribution costs, play a key role for the price formation in the energy sector because this sector has always been very dependent on external events such as geopolitics and market volatilities. The understanding of the secondary factors, which sometimes are even more important for the price formation than the production costs, is essential for every government and market player in the sector who want to be in control of the situation and not negatively affected by the energy fluctuations. Knowing well what may affect the energy prices means being familiar with the world geopolitics and with the basics of the financial market. But only through this knowledge and through the elaboration of effective countermeasures, the risks of extreme energy price volatility can be mitigated. As many energy experts point out, the world is entering a period of extreme energy instability and the historic graphics of the movements of energy prices prove this statement. The reasons behind this event are various– high demand, lower investments forthe production ofsome energy resources, higher geopolitical instability and last but not least the liberalization of the energy markets and their exposure to the risks of the financial markets. The present article offers an insight in some of the main non-production factors that can affect energy price formation and it also points on some of the main reasons that led to the current energy crisis of high prices.
- Subjects
ENERGY industries; POWER resources; DISTRIBUTION costs; ENERGY shortages; PRICES; FOOD prices; CONSUMER price indexes
- Publication
Management & Education / Upravlenie i Obrazovanie, 2023, Vol 19, Issue 1, p54
- ISSN
1312-6121
- Publication type
Article