Since the short-term demand for energy is not very reactive to price variations due to the fixed costs associated with changing the sources and forms of supply, a possible increase in prices would heighten the financial vulnerability of firms and households owing to the higher cost of purchasing energy goods.
A sharp drop in the value of assets and infrastructures linked to the mining, transformation and use of fossil fuels (coal, oil and gas) could also trigger a rush to sell the securities of the most exposed companies and may make it more difficult for them to cover their liabilities towards the banking system and the market, with consequences that could significantly affect the economic system and financial stability.