Title: Examining the impact of COVID-19 on Indian energy exchange market: empirical evidence from a multi-regional panel data analysis

Authors: Bamadev Mahapatra; Diptimayee Jena

Addresses: Department of Management Studies, Indian Institute of Technology (Indian School of Mines), Dhanbad 826004, Jharkhand, India ' Nabakrushna Choudhury Centre for Development Studies, Bhubaneswar 751013, Odisha, India

Abstract: This study aims to explore the effect of coronavirus disease 2019 (COVID-19) on the Indian energy exchange market (IEX), especially on energy sell, energy buy, and energy price. The data used in this study is multi-regional panel data consisting of 13 regions observed through March to August 2020. To investigate the relationship, a panel cointegration, causality, and a Panel-Based Autoregressive Distributed Lag (PARDL) model is applied within a multivariate framework. The empirical outcomes confirm that a long-run equilibrium relationship is noticeable in the models. Results of the causality test suggest that there exists a unidirectional causality running from COVID-19 to the IEX. Based on the findings of long-run and short-run elasticities of the Pooled Mean Group (PMG) estimator, this study suggests the government and policymakers should provide aids and incentives to the power generating companies and to the investors which generate, sell and purchase energy from the energy exchange market.

Keywords: COVID-19; energy exchange market; energy sell; energy buy; energy price; panel data; cointegration; causality; panel ARDL; India.

DOI: 10.1504/IJGEI.2022.120796

International Journal of Global Energy Issues, 2022 Vol.44 No.1, pp.76 - 97

Received: 17 Aug 2020
Accepted: 25 Feb 2021

Published online: 08 Feb 2022 *

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