Market Size and Supply Disruptions: Sharing the Pain of a Potential Russian Gas Shut-off to the European Union

We assess the supply-side effects on European Union (EU) economic activity if Russian gas imports were to suddenly cease. Unlike other studies, we account for the global scope of the liquefied natural gas (LNG) market. In the absence of frictions, an open-economy, multi-sector general equilibrium mo...

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Bibliographic Details
Main Author: Albrizio, Silvia
Other Authors: Bluedorn, John, Koch, Christoffer, Pescatori, Andrea
Format: eBook
Language:English
Published: Washington, D.C. International Monetary Fund 2022
Series:IMF Working Papers
Subjects:
Online Access:
Collection: International Monetary Fund - Collection details see MPG.ReNa
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245 0 0 |a Market Size and Supply Disruptions: Sharing the Pain of a Potential Russian Gas Shut-off to the European Union  |c Silvia Albrizio, John Bluedorn, Christoffer Koch, Andrea Pescatori, Martin Stuermer 
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300 |a 39 pages 
651 4 |a Russian Federation 
653 |a Energy: Demand and Supply 
653 |a Wealth 
653 |a Industries: Energy 
653 |a Gas industry 
653 |a National accounts 
653 |a Economics of specific sectors 
653 |a Energy: General 
653 |a Currency crises 
653 |a Consumption; Economics 
653 |a Demand elasticity 
653 |a Macroeconomics: Consumption, Saving, Production, Employment, and Investment: General (includes Measurement and Data) 
653 |a Macroeconomics 
653 |a Prices, Business Fluctuations, and Cycles: General (includes Measurement and Data) 
653 |a Economic theory 
653 |a Elasticity; Economics 
653 |a Petroleum, oil & gas industries 
653 |a Supply and demand 
653 |a Economic & financial crises & disasters 
653 |a Economic Theory 
653 |a Saving 
653 |a Economics: General 
653 |a Natural gas sector 
653 |a Supply shocks 
653 |a Hydrocarbon Resources 
653 |a Informal sector; Economics 
653 |a Economic theory & philosophy 
653 |a Fuel prices 
653 |a Economic sectors 
653 |a Consumption 
653 |a Prices 
653 |a Macroeconomics: Consumption 
653 |a Agriculture: Aggregate Supply and Demand Analysis 
700 1 |a Bluedorn, John 
700 1 |a Koch, Christoffer 
700 1 |a Pescatori, Andrea 
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520 |a We assess the supply-side effects on European Union (EU) economic activity if Russian gas imports were to suddenly cease. Unlike other studies, we account for the global scope of the liquefied natural gas (LNG) market. In the absence of frictions, an open-economy, multi-sector general equilibrium model suggests that the adverse economic impact on the EU shrinks five-fold if integration with the global LNG market is considered. While greater integration provides a buffer for the EU through trade, the flip side is that other LNG importers (such as Japan, South Korea, and Pakistan) see adverse effects from higher prices