Impacts of the Russia-Ukraine war on energy prices: evidence from OECD countries

This study applies the PSM-DID approach to investigate whether the energy price has been impacted by the Russia-Ukraine war among OECD countries during 1999-2022. Compared with previous studies, we obtain robust and heterogeneous results by considering endogeneity from the perspective of quantitative policy assessment. It concludes the Russia-Ukraine war has significantly raised energy prices, leading to a 9% increase in energy prices in OECD countries. The heterogeneity results show that the Russia-Ukraine war impacted the energy prices of EU and NATO members but not those of non-EU and non-NATO countries. Additionally, only the energy prices in Southern and Western European countries have been significantly increased by the Russia-Ukraine war, in which Southern Europe has been the most affected, rising by 22%. These findings have great practical significance for analyzing the degree of influence of war on fluctuations in energy prices and geopolitical risks in regions.