Commodity exposure in the eurozone: How EU energy security is conditioned by the Euro

Abstract

The European Union is immersed in a process of energy transition focused on reducing the weight of fossil fuels. The current context is also characterized by the increasing attention paid to energy security, conditioned by the volatility of the prices for energy raw materials, among other factors. This work analyzes the raw material price exposure of electricity producers in the Eurozone. The results indicate that the listing of raw materials in U.S. dollars is the primary cause of business exposure, with an impact greater than the price of the raw material itself. A geographic analysis also indicates that there are important differences in the level of exposure among companies in different countries, which can make it difficult to reach a consensus in the European Union