Energy-Related Uncertainty Indexes

Download Data                    Download Annotated Index

We are pleased to host the Energy-Related Uncertainty Indexes (EUI) created by Tam Hoang-Nhat Dang, Canh Phuc Nguyen, Gabriel S. Lee, Binh Quang Nguyen and Thuy Thu Le for their article on "Measuring the Energy-Related Uncertainty Index" in Energy Economics, 2023.

The authors construct monthly EUI indexes for 28 developed and developing countries from 1996 to 2022 in three steps. First, they construct an economic uncertainty index for each country following the approach in "The World Uncertainty Index" by Ahir, Bloom and Furceri. Specifically, they count the frequency of terms like "uncertain," "uncertainty," and "uncertainties" in each monthly country report of the Economist Intelligence Unit, divide that count by the number of words in the same report, and normalize each resulting country-level index to a mean of 100 over time. In the second step, the authors take the same approach to construct an energy-related index for each country from the same source. For this purpose, they use the energy-related keywords listed in Table 1, most of which are from "Google Search Keywords that Best Predict Energy Price Volatility" in Energy Economics, 2017, by Afkhami, Cormac and Ghoddusi. In the third step, they compute the monthly country-level EUI values as the simple mean of the economic uncertainty index and the energy-related index.

The authors also compute Global EUI series as the equal-weighted and GDP-weighted means of the country-specific EUI series.