Asymmetric effects of global sentiments on EU electricity prices

DENİZ P., Stengos T.

Journal of Economic Asymmetries, vol.33, 2026 (Scopus) identifier identifier

  • Publication Type: Article / Article
  • Volume: 33
  • Publication Date: 2026
  • Doi Number: 10.1016/j.jeca.2026.e00457
  • Journal Name: Journal of Economic Asymmetries
  • Journal Indexes: Scopus, EconLit
  • Keywords: Asymmetry, Electricity prices, Sentiment analysis, The EU
  • Marmara University Affiliated: Yes

Abstract

This study investigates the role of sentiments expressed through various publications by international organizations, namely the International Monetary Fund (IMF), the World Trade Organization (WTO), the World Bank (WB) and the United Nations (UN) on electricity prices for 22 European Union (EU) countries, controlling for the main determinants used in the literature. Sentiments are measured using the finBERT algorithm. The analysis is carried out within a kink regression framework to account for possible asymmetric effects. Concentrating on the IMF, the findings suggest a negative and asymmetric effect of IMF sentiments on electricity prices in several EU countries during relatively more pessimistic periods.