Jan — Apr 2023 Pacific Forum

 Download Article as PDF

By Yu Bin

Published May 2023 in Comparative Connections · Volume 25, Issue 1 (This article is extracted from Comparative Connections: A Triannual E-Journal of Bilateral Relations in the Indo-Pacific, Vol. 25, No. 1, May 2023. Preferred citation: Yu Bin, “China-Russia Relations: War and Peace for Moscow and Beijing,” Comparative Connections, Vol. 25, No. 1, pp 161-170.)

CONNECT WITH THE AUTHOR

Yu Bin, Wittenberg University

Perhaps more than any other time in their respective histories, the trajectories of China and Russia were separated by choices in national strategy. A year into Russia’s “special military operation” in Ukraine, the war bogged down into a stalemate. Meanwhile, China embarked upon a major peace offensive aimed at Europe and beyond. It was precisely during these abnormal times that the two strategic partners deepened and broadened relations as top Chinese leaders traveled to Moscow in the first few months of the year (China’s top diplomat Wang Yi, President Xi Jinping, and newly appointed Defense Minister Li Shangfu). Meanwhile, Beijing’s peace initiative became both promising and perilous as it reached out to warring sides and elsewhere (Europe and the Middle East). It remains to be seen how this new round of “Western civil war” (Samuel Huntington’s depiction of the 1648-1991 period in his provocative “The Clash of Civilizations?” treatise) could be lessened by a non-Western power, particularly after drone attacks on the Kremlin in early May.

IMF.org

Full text here

Abstract

European power markets are in the midst of unprecedented changes, with a record-breaking surge in energy prices.This paper investigates the impact of green power resources on the level and volatility of wholesale electricity prices at a granular level, using monthly observations for a panel of 24 European countries over the period 2014–2021 and alternative estimation methods including a panel quantile regression approach. We find that renewable energy is associated with a significant reduction in wholesale electricity prices in Europe, with an average impact of 0.6 percent for each 1 percentage points increase in renewable share. We also find evidence for a nonlinear effect—that is, higher the share of renewables, the greater its effect on electricity prices. On the other hand, while quantile estimation results are mixed with regards to the impact of renewables on the volatility of electricity prices, we obtain evidence that renewable energy has a negative effect on volatility at the highest quantiles. Overall, our analysis indicates that policy reforms can help accelerate the green transition while minimizing the volatility in electricity prices.