Geopolitical risk and the asymmetric vulnerability of transitional fuels: TVP-VAR evidence from global energy markets

Key Points

• Asymmetric vulnerability impacts the stability of transitional fuels within global energy markets, highlighting risk exposure.
• Findings indicate that geopolitical risk significantly influences energy market behaviors, especially for transitional fuels.
• Analysis using a time-varying parameter vector autoregression (TVP-VAR) model reveals unique patterns in market response.
• Implications suggest a need for strategic planning in energy policies to mitigate vulnerabilities related to geopolitical tensions.