Impact of EU electricity prices on the economy

This thesis aims to study the potential relationship between spot electricity prices and the wealth of households and companies across the Eurozone, which has not been extensively studied in the past. With the increasing importance of electricity in daily life and its role in meeting climate goals, understanding the correlation between electricity prices and wealth is crucial. The literature review shows that while there has been extensive research on the relationship between energy and GDP/industrial production, there has been no attempt to study this relationship for electricity. The thesis is divided into two parts, where the first part aims to capture the relationship between monthly electricity prices and industrial production, while the second part focuses on the relationship between monthly electricity prices and GDP. Both the industrial production and GDP show a statistically significant correlation: the first one positive and the other negative.