arbiter
JournalsAccount

Economic challenges from carbon intensity reduction and energy transition: oil demand shocks, business profitability and market structures

Anna Parziale & Andrea Gatto

International Environmental Agreements: Politics, Law and Economics2025https://doi.org/10.1007/s10784-025-09687-9article
ABDC A
Weight
0.41

Abstract

This paper explores a significant shift in economic research on decarbonization based on recent findings by Masnadi et al. (2021). Traditional studies have focused on reducing carbon intensity (CI) through macroeconomic variables such as income per capita, tourism, and exports. However, these approaches have yet to lead to effective policies. Recent research highlights the importance of shocks in oil demand, business profitability, and market structures for CI reduction. Aligning with Masnadi et al. (2021), this paper examines the implications of these factors for policy and the role of public intervention versus market forces in accelerating the energy transition, improving energy efficiency, and reducing CI. Given the variability of petroleum resources and the diversification of the carbon footprint of the global oil supply, this paper aims to highlight the gaps and challenges in existing policies for reducing carbon intensity and offer a significant shift in economic research perspectives. The research reveals striking insights into energy vulnerability and resilience policy dynamics. These findings carry relevant implications for understanding the role of oil demand shocks and the carbon footprint of marginal oils. Future research will be crucial for exploring new scholarly avenues and offering solutions to pressing energy policy and geopolitical challenges for achieving net-zero.

2 citations

Open via your library →

Cite this paper

https://doi.org/https://doi.org/10.1007/s10784-025-09687-9

Or copy a formatted citation

@article{anna2025,
  title        = {{Economic challenges from carbon intensity reduction and energy transition: oil demand shocks, business profitability and market structures}},
  author       = {Anna Parziale & Andrea Gatto},
  journal      = {International Environmental Agreements: Politics, Law and Economics},
  year         = {2025},
  doi          = {https://doi.org/https://doi.org/10.1007/s10784-025-09687-9},
}

Paste directly into BibTeX, Zotero, or your reference manager.

Flag this paper

Economic challenges from carbon intensity reduction and energy transition: oil demand shocks, business profitability and market structures

Flags are reviewed by the Arbiter methodology team within 5 business days.

Evidence weight

0.41

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact0.25 × 0.4 = 0.10
M · momentum0.55 × 0.15 = 0.08
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

† Text relevance is estimated at 0.50 on the detail page — for your query’s actual relevance score, open this paper from a search result.