THE DYNAMICS OF OIL PRICE VOLATILITY AND ITS IMPACT ON GLOBAL ENERGY TRANSITION: AN ECONOMIC ANALYSIS

<p style="text-align: justify; line-height: 150%;">The global energy landscape is undergoing significant transformation due to oil price volatility and the shift toward renewable energy sources. This study examines the economic implications of oil price fluctuations on energy markets, renewable energy investments, and global policies.<br />Employing econometric models (Vector Autoregression) and case studies, we analyze the interplay between oil price volatility, energy security, and energy transition pace. Findings indicate that oil price shocks exert short-term negative effects on renewable investments but show increasing decoupling in the long term, driven by policy support and technological advancements. The paper offers policy recommendations to mitigate volatility risks and accelerate sustainable energy transitions.</p>