@article{01J2TWKGSZJ8R6DG9JNE0X5G4X,
  abstract     = {{This paper traces the existence of an energy transmission channel of temperature anomalies to Euro-Area inflation. We show that, on average, warmer temperature shocks elicit a negative energy demand shift, exerting moderate deflationary pressure. By looking into several asymmetries and macroeconomic indicators, we rationalize that evidence as signaling that the “turn-off-heating” effect in Europe outweighs the “turn-on-cooling”. This result becomes clearer when energy market responses are decomposed into gas and electricity components. Weak inflationary effects from non-energy items are at play when the shock hits during warm seasons. A persistent inflationary tendency manifests when food and energy prices rise, an outcome emerging only when negative anomalies – cold spells – hit. These findings shed new light on monitoring price stability due to global warming.}},
  articleno    = {{104771}},
  author       = {{Lucidi, Francesco Simone and Pisa, Marta Maria and  Tancioni, Massimiliano}},
  issn         = {{0014-2921}},
  journal      = {{EUROPEAN ECONOMIC REVIEW}},
  keywords     = {{Climate change,Temperature shock,Macroeconomics,Inflation,Local projections,Energy market,Euro Area,Local,projections,CLIMATE-CHANGE,LOCAL PROJECTIONS,WEATHER,INCREASES,IMPACTS,DISRUPTIONS,COMPETITION,RESPONSES,MARKET}},
  language     = {{eng}},
  pages        = {{24}},
  title        = {{The effects of temperature shocks on energy prices and inflation in the Euro Area}},
  url          = {{http://doi.org/10.1016/j.euroecorev.2024.104771}},
  volume       = {{166}},
  year         = {{2024}},
}

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