-
Dispatch strategies for large-scale heat pump based district heating under high renewable share and risk-aversion: A multistage stochastic optimization approach Energy Econ. (IF 13.6) Pub Date : 2024-07-09 Muhammad Bilal Siddique, Dogan Keles, Fabian Scheller, Per Sieverts Nielsen
Heat pumps play an essential role in decarbonizing the heating sector, and their adoption is projected to rise significantly. The high share of large-scale heat pumps in district heating exposes heating utilities to uncertainty in electricity markets. This challenge is further exacerbated by 1) future high share of renewable energy resulting in increased uncertainty of electricity prices, and 2) introduction
-
Natural resource extraction and economic diversification in Russian regions: Application of dynamic DID Energy Econ. (IF 13.6) Pub Date : 2024-07-08 Kazi Sohag, Rogneda Vasilyeva, Valentin Voytenkov, Shawkat Hammoudeh
The abundance of natural resources can hinder economic diversification. Russia's heavy reliance on natural resources has not thoroughly been examined to determine whether a resource extraction boom promotes or stifles economic diversification. This study uses a dynamic DiD event approach to analyze panel data for 83 Russian regions over the 1996–2019 period. We compare regions with and without oil
-
Macroeconomic shocks and volatility spillovers between stock, bond, gold and crude oil markets Energy Econ. (IF 13.6) Pub Date : 2024-07-04 Yongdeng Xu, Bo Guan, Wenna Lu, Saeed Heravi
This paper introduces a novel model to analyze the impact of macroeconomic shocks on volatility spillovers within key financial markets, such as Stock, Bond, Gold and Crude Oil. By treating macroeconomic variables as external factors to financial market volatility, our study distinguishes between internal financial volatility spillovers and external shocks arising from macroeconomic changes. Our analysis
-
A multiscale time-series decomposition learning for crude oil price forecasting Energy Econ. (IF 13.6) Pub Date : 2024-07-03 Jinghua Tan, Zhixi Li, Chuanhui Zhang, Long Shi, Yuansheng Jiang
Crude oil price forecasting is important for market participants and policymakers. However, accurately tracking oil prices is quite a challenging task due to the complexity of temporal oil data and the nonlinear relationships involved in the forecasting task. In this study, a multiscale time-series decomposition learning framework is proposed to deal with this issue. First, a multiscale temporal processing
-
Differentiated pricing for the retail electricity provider optimizing demand response to renewable energy fluctuations Energy Econ. (IF 13.6) Pub Date : 2024-07-01 He Li, Pengyu Wang, Debin Fang
As renewable energy expands, its fluctuations challenge grid security. Demand response (DR) is a crucial solution for ensuring grid stability. This paper designs a two-stage optimization model for the retail electricity provider (REP), aiming to develop differentiated prices to incentivize multiple types of users in DR. In the first stage, the REP utilizes energy storage to adjust electricity purchases
-
The effect of PV generation's hourly variations on Israel's solar investment Energy Econ. (IF 13.6) Pub Date : 2024-07-01 I. Milstein, A. Tishler, C.K. Woo
Limited by sunniness and conversion efficiency, one installed MW of photovoltaic (PV) capacity can only produce MWh of electricity in daytime hour , where = positive fraction that we call PV's (HEC). Based on a sample of commercially operating PV plants in Israel, HEC rises throughout the 08:00–11:00 period, peaks in the 11:00–14:00 period and then declines in the 14:00–18:00 period. Further, HEC values
-
Monetary policies on green financial markets: Evidence from a multi-moment connectedness network Energy Econ. (IF 13.6) Pub Date : 2024-07-01 Tingguo Zheng, Hongyin Zhang, Shiqi Ye
This paper introduces a novel multi-moment connectedness network approach for analyzing the interconnectedness of green financial market. Focusing on the impact of monetary policy shocks, our study reveals that connectedness within the green bond and equity markets varies with different moments (returns, volatility, skewness, and kurtosis) and changes significantly around Federal Open Market Committee
-
Renewable energy investment under stochastic interest rate with regime-switching volatility Energy Econ. (IF 13.6) Pub Date : 2024-07-01 Jérôme Detemple, Yerkin Kitapbayev, A. Max Reppen
We examine the impact of the interest rate and its characteristics, such as long run mean and instantaneous variance risk (VR), on renewable energy investments in the power sector. The model has stochastic electricity price, stochastic interest rate, and variance regime switches. We show that an increase in the interest rate, while generally increasing the value of a power project, can have a non-monotone
-
Volatility dynamics of agricultural futures markets under uncertainties Energy Econ. (IF 13.6) Pub Date : 2024-07-01 Anupam Dutta, Gazi Salah Uddin, Lin Wen Sheng, Donghyun Park, Xuening Zhu
The objective of this study is to examine the effect of various uncertainty measures on the realized volatility of agricultural futures markets. In doing so, we use a range of uncertainty indicators in our analysis to investigate whether news-based uncertainty measures (e.g., geopolitical risk and economic policy uncertainty) have better predictive contents than the market-based uncertainty measures
-
Dynamic quantile connectedness between oil and stock markets: The impact of the interest rate Energy Econ. (IF 13.6) Pub Date : 2024-06-26 Jingrui Qin, Xiaoping Cong, Di Ma, Xueyun Rong
This paper explores the heterogeneous and dynamic connectedness between the oil and stock markets of emerging economies under various market conditions by introducing a novel quantile regression TVP-VAR network method. Moreover, a semiparametric model is used to analyze the impact of interest rates on the connectedness. The results show that (1) the total connectedness between the oil and stock markets
-
Alternative monetary policies and renewable energy stock returns Energy Econ. (IF 13.6) Pub Date : 2024-06-26 Natali Gordo, Alistair Hunt, Bruce Morley
The aim of this study is to determine how monetary policy interacts with the financial sector specialising in renewable energy, especially since the implementation of Quantitative Easing (QE). Using EU data and the VAR approach incorporating the interest rate, representing monetary policy, an index of renewable energy stock prices, oil prices, technology and the VIX, this paper applies Granger causality
-
Shock transmission between climate policy uncertainty, financial stress indicators, oil price uncertainty and industrial metal volatility: Identifying moderators, hedgers and shock transmitters Energy Econ. (IF 13.6) Pub Date : 2024-06-26 Muhammad Shahbaz, Umaid A. Sheikh, Mosab I. Tabash, Zhilun Jiao
This research initially examines the shock transmission from news-related Climate Policy Uncertainty (CPU), the CBOE crude oil volatility index as a proxy for Oil Price Uncertainty (OPU), and global Financial Stress Indicators (FSI) such as “Credit, ““Equity-Valuation, ““Funding,” “Safe-Assets,” and “Volatility,” towards the conditional volatility of global steel, iron ore, and aluminum prices using
-
An inquiry into the nexus between artificial intelligence and energy poverty in the light of global evidence Energy Econ. (IF 13.6) Pub Date : 2024-06-26 Tao Ding, Hao Li, Li Liu, Kui Feng
Energy poverty is a global challenge that constrains economic development, jeopardizes people's health, and impedes the improvement of people's lives. Artificial intelligence (AI) could be an important tool to reverse this dilemma. We utilize a panel data covering 64 countries during 2000–2019 to examine AI's impact on energy poverty. The findings reveal that the application of AI effectively alleviates
-
Interdependencies and risk management strategies between green cryptocurrencies and traditional energy sources Energy Econ. (IF 13.6) Pub Date : 2024-06-25 Zaghum Umar, Muhammad Usman, Muhammad Umar, Farah Ktaish
This study delves into the intricate relationship between environmentally friendly cryptocurrencies, often termed ‘green cryptocurrencies,’ and traditional energy sources, commonly referred to as ‘dirty fuels’, by employing Copula-CoVaR methodology, along with evaluating hedge ratios and the effectiveness of hedging strategies. This research aims to uncover the dynamics of risk and return spillovers
-
Measuring the energy poverty premium in Great Britain and identifying its main drivers based on longitudinal household survey data Energy Econ. (IF 13.6) Pub Date : 2024-06-24 Fiona Rasanga, Tina Harrison, Raffaella Calabrese
Following the consistent hike in energy prices in recent years, energy affordability by low-income households in Great Britain has become a significant concern. These concerns are further compounded by the disproportionate cost of energy that poor households are likely to pay, compared to the non-poor. In this study, we examine the exposure of poor households to energy premiums by measuring the additional
-
Electrification or deforestation? Evidence from household practices in Côte d’Ivoire Energy Econ. (IF 13.6) Pub Date : 2024-06-24 Alpha Ly, Raja Chakir, Anna Creti
This paper investigates the impact of electrification on household practices related to deforestation in Côte d’Ivoire, specifically focusing on the expansion of arable farms and the use of biomass fuels. A theoretical framework inspired by the heterogeneous agricultural households model proposed by is employed to theoretically elucidate the relationship between electrification and the expansion of
-
Mapping the landscape of energy markets research: A bibliometric analysis and predictive assessment using machine learning Energy Econ. (IF 13.6) Pub Date : 2024-06-24 Thiago Christiano Silva, Tercio Braz, Benjamin Miranda Tabak
This study examines the evolving dynamics of research on the energy market that focuses on understanding its interactions and interdependencies with other markets. Using published articles from 2002 to 2022 indexed by the Web of Science, we employ bibliometric methods, complex network measurements, and machine learning algorithms to analyze trends and predict academic success or interest. Our bibliometric
-
The impact of oil shocks on green, clean, and socially responsible markets Energy Econ. (IF 13.6) Pub Date : 2024-06-24 Ahmed H. Elsayed, Rabeh Khalfaoui, Samia Nasreen, David Gabauer
The study employs novel empirical approaches, namely wavelet quantile correlation (WQC) and cross-quantilogram analysis, to examine the interrelationship between green bonds (GB), clean energy (GCE), socially responsible stocks (ESG), and variants of oil shocks during the period spanning from June 28th, 2013 to June 1st, 2023. Empirical findings from the WQC highlight consistent diversification benefits
-
Predicting energy source diversification in emerging Asia: The role of global supply chain pressure Energy Econ. (IF 13.6) Pub Date : 2024-06-23 Yunpeng Sun, Shreya Pal, Mantu Kumar Mahalik, Giray Gozgor, Chi Keung Marco Lau
This study investigates energy diversification trends in six Emerging Asian countries from 1998 to 2021 while exploring the predicting effects of the global supply chain pressure, total investment, innovation, economic growth, and globalisation on energy diversification. This study considers the Kernel-Based Regularized Least Squares (KRLS) estimations and prediction models (Adam and Stochastic Gradient
-
On transmission channels of energy prices and monetary policy shocks to household consumption: Evidence from India Energy Econ. (IF 13.6) Pub Date : 2024-06-20 Pragati Priya, Chandan Sharma
This study examines the channels of transmission of unanticipated energy price changes and monetary policy shocks to household consumption decisions. We use a large and dynamic panel data set of Indian households for the analysis. Our findings show that both shocks have adverse effects on aggregate consumption and its categories. Furthermore, rising energy prices and monetary tightening policies disproportionately
-
Estimating the emissions reductions from supply-side fossil fuel interventions Energy Econ. (IF 13.6) Pub Date : 2024-06-20 Brian C. Prest, Harrison Fell, Deborah Gordon, TJ Conway
Supply-side interventions that retire highly emitting fossil fuel assets have received increased attention from policymakers and private actors alike. Yet concerns about market leakage—wherein reduced supply from one source is partially offset by increased production from other sources—have raised questions about how much emissions reductions they can achieve. In this paper, we estimate the effects
-
Estimating the income-related inequality aversion to energy limiting behavior in the United States Energy Econ. (IF 13.6) Pub Date : 2024-06-19 Luling Huang, Destenie Nock
Distributive energy justice is measured by the degree to which, and whether, different members of society have equal share in the benefits and burdens of the energy system. One way to achieve distributional energy justice is to ensure all households, regardless of income, can use as much energy as they need to heat and cool their home to desired temperature. We define a household's (CBP) as the ideal
-
Do climate risks affect dirty–clean energy stock price dynamic correlations? Energy Econ. (IF 13.6) Pub Date : 2024-06-19 Di Li, Zhige Wu, Yixuan Tang
Prior studies have extensively exhibited an interest in exploring the connectedness between dirty and clean energy stock prices alongside the drivers of such price connectedness, shedding light on hedging strategies for finance practitioners. Nevertheless, no empirical research has examined whether climate risks, the emerging indicator for investors to handle the divestment of dirty energy stocks,
-
The impact of renewable energy on inflation in G7 economies: Evidence from artificial neural networks and machine learning methods Energy Econ. (IF 13.6) Pub Date : 2024-06-19 Long Zhang, Hemachandra Padhan, Sanjay Kumar Singh, Monika Gupta
This paper examines the impact of cleaner energy adoption (i.e., renewable energy consumption and generation) on inflation rates in G7 economies from 1997 to 2021. The Principal Component Analysis is used to construct the renewable energy consumption and generation indices. Then, the paper runs various artificial neural networks and machine learning methods to test the validity of the cleaner energy-led
-
Environmental policy stringency and ecological footprint linkage: Mitigation measures of renewable energy and innovation Energy Econ. (IF 13.6) Pub Date : 2024-06-18 Kazi Sohag, Shaiara Husain, Ugur Soytas
We scrutinize the environmental policies' efficacy in reducing ecological footprint by interweaving two other vibrant parameters of environmental degradation mitigation, i.e., renewable energy sources and innovation. To this end, we apply a Cross-Sectional Autoregressive Distributed Lags (CS-ARDL) approach to analyze panel time-series data (1990–2018) in the context of OECD countries. Our analysis
-
Crises and energy markets reforms Energy Econ. (IF 13.6) Pub Date : 2024-06-15 Luca Bettarelli, Davide Furceri, Pietro Pizzuto, Khatereh Yarveisi
The spikes in energy prices observed following recent major global shocks—e.g., COVID-19 and Russia-Ukraine war —as well as issues related to the diffusion of renewable energy power generation, have reopened the debate about the design of electricity markets and the role of the “state” vs. “market” in the electricity markets governance. In this article, we contribute to this debate by looking at the
-
Non-firm vs priority access: On the long run average and marginal costs of renewables in Australia Energy Econ. (IF 13.6) Pub Date : 2024-06-14 Paul Simshauser, David Newbery
In Australia, the National Electricity Market (NEM) has experienced a rapid expansion of Variable Renewable Electricity (VRE) projects, not without obstacles. Entry frictions such as movements in Marginal Loss Factors and/or network congestion adversely impacted ∼15% of new projects. Are these the expected results in a workably functioning market, or due to market design defects? Policy advisors have
-
Exploring the endogenous structure and evolutionary mechanism of the global coal trade network Energy Econ. (IF 13.6) Pub Date : 2024-06-13 Yuxin Liu, Yunting Li, Yue Pu
The uneven distribution of global coal supply and demand markets has driven coal trade. Effectively characterizing the global coal trade pattern and exploring its evolutionary mechanisms are important for economic development and international energy security. Therefore, this study adopts complex network methods to construct global coal trade network (GCTN) from 1995 to 2021. Based on exploring the
-
Willingness to pay for solar adoption: Economic, ideological, motivational, and demographic factors Energy Econ. (IF 13.6) Pub Date : 2024-06-12 Sachin B. Badole, Stephen Bird, Martin D. Heintzelman, Lisa Legault
Residential solar energy installations are a critical component of the energy transition. Nonetheless, just a small fraction of all eligible households have installed solar panels. We investigate household willingness to pay (WTP) for a residential rooftop solar system using a stated preference approach and including socio-demographic, ideological, economic, and psychological factors.
-
Exchange rate movements and the energy transition Energy Econ. (IF 13.6) Pub Date : 2024-06-12 Yanran Hong, Keyu Luo, Xiaochao Xing, Lu Wang, Luu Duc Toan Huynh
Exchange rate changes affect economic activities and reflect the country's financial strength. In the current critical energy transition period, are exchange rate changes affected by the global energy transition? This paper focuses on three major exchange rates: USD/EUR, USD/CNY, and USD/JPY. Besides, we use total energy consumption, renewable energy consumption, and CO2 emissions in the residential
-
Attention to climate change and eco-friendly financial-asset prices: A quantile ARDL approach Energy Econ. (IF 13.6) Pub Date : 2024-06-12 Walid M.A. Ahmed
-
Safe haven properties of industrial stocks against ESG in the United States: Portfolio implication for sustainable investments Energy Econ. (IF 13.6) Pub Date : 2024-06-12 Zulfiqar Ali Imran, Muhammad Ahad, Khurram Shahzad, Mobeen Ahmad, Imran Hameed
This study explores the safe haven role of industry sectors classified by the Global Industry Classification Standards (GICS) for global Environmental, Social, and Governance (ESG) stocks in the United States. Our study applies the novel cross-quantilogram and quantile time-frequency connectedness approach for daily time series data from November 2019 to October 2023. Our findings confirm that industry
-
Market volatilities vs oil shocks: Which dominate the relative performance of green bonds? Energy Econ. (IF 13.6) Pub Date : 2024-06-12 Yu Wei, Chunpei Shi, Chunyan Zhou, Qian Wang, Yuntong Liu, Yizhi Wang
The market performance of green bonds determines whether they will make a significant contribution to future financial markets and sustainable investment. It is therefore important to conduct a thorough study of the dominant factors affecting the market performance of green bonds, particularly their performance relative to conventional bonds. Thus, the main objective of this paper is to investigate
-
Tax versus regulations: Polluters’ incentives for loosening industry emission targets Energy Econ. (IF 13.6) Pub Date : 2024-06-11 Kosuke Hirose, Akifumi Ishihara, Toshihiro Matsumura
We investigate the political incentives of a polluter in affecting industry emission targets (relaxing emission restrictions) imposed by the government in a monopoly market. Specifically, we compare three typical environmental policies—two command-and-control regulations (an emission cap regulation that restricts total emissions and an emission intensity regulation that restricts emissions per output
-
Monetary policy uncertainty and ESG performance across energy firms Energy Econ. (IF 13.6) Pub Date : 2024-06-11 Emmanuel Joel Aikins Abakah, Aviral Kumar Tiwari, Mohammad Abdullah, Qiang Ji, Zunaidah Sulong
This study investigates the relationship between monetary policy uncertainty and the Environmental, Social, and Governance (ESG) performance of energy firms. For empirical analysis this study used unbalanced panel data of 3991 firm-year observations from 35 countries covering the period from 2002 to 2021. Utilizing the Shadow Short Rate as a proxy for monetary policy uncertainty, our baseline results
-
US gasoline response to vehicle fuel efficiency: A contribution to the direct rebound effect Energy Econ. (IF 13.6) Pub Date : 2024-06-10 Hillard G. Huntington
This study measures the response of gasoline consumption to improved vehicle fuel efficiency (miles per gallon). Although an inverse relationship exists, the percentage decline is always less than the percentage efficiency improvement. As usually measured by past researchers, the long-run response in this study is approximately 80% of the efficiency improvement. The remaining 20% is the direct rebound
-
Clean energy market connectedness and investment strategies: New evidence from DCC-GARCH R[formula omitted] decomposed connectedness measures Energy Econ. (IF 13.6) Pub Date : 2024-06-10 Teodoro Cocca, David Gabauer, Stefan Pomberger
In this study, we investigate the return propagation mechanism across four clean energy indices, namely, the NASDAQ OMX Green Economy Index, NASDAQ OMX Solar Energy Index, NASDAQ OMX Wind Energy Index, and NASDAQ OMX Geothermal Energy Index ranging from December 21st, 2010 until June 2nd, 2023 by using a novel DCC-GARCH-based decomposed connectedness approach. This framework allows us to efficiently
-
The ‘complex’ transition: Energy intensity and CO2 emissions amidst technological and structural shifts. Evidence from OECD countries Energy Econ. (IF 13.6) Pub Date : 2024-06-10 Alessandro Marra, Emiliano Colantonio, Marco Cucculelli, Eugenia Nissi
The purpose of the paper is twofold. Firstly, we investigate whether technological and structural shifts result in reduced energy intensity and lower CO2 emissions. Secondly, we explore whether such technological and industrial transformations interact and have a joint impact on the environment. We use a PVAR model in first differences for a panel of 34 OECD countries spanning from 1994 to 2019, as
-
How AI shapes greener futures: Comparative insights from equity vs debt investment responses in renewable energy Energy Econ. (IF 13.6) Pub Date : 2024-06-10 Jun Wen, Hua-Tang Yin, Chun-Ping Chang, Kai Tang
This paper offers insights regarding the potential of AI software development to narrow the financing gap in renewables. By employing a panel of 49 economies covering 2011–2020, we estimate a two-way fixed effects model and reveal that AI software development significantly promotes equity investments in renewables while imposing no substantial effect on debt investments in the same field. Such results
-
On representation of energy storage in electricity planning models Energy Econ. (IF 13.6) Pub Date : 2024-06-06 James H. Merrick, John E.T. Bistline, Geoffrey J. Blanford
This paper considers the representation of energy storage in electricity sector capacity planning models. The incorporation of storage in long-term systems models of this type is increasingly relevant as the costs of storage technologies, particularly batteries, and of complementary variable renewable technologies decline. To value energy storage technologies appropriately in optimization models, a
-
Impact of Contracts for Differences for non-carbon electricity generation on efficiency of electricity market Energy Econ. (IF 13.6) Pub Date : 2024-06-06 Arjen T. Veenstra, Machiel Mulder
In response to the recent energy crisis, the European Commission proposed two-way Contracts for Differences (CfDs) to secure renewable energy investments and protect consumers. The proposed CfDs, however, raised concerns regarding the potential impact on electricity prices. This study examines the effects of various CfD design elements on day-ahead electricity prices, welfare, and renewable energy
-
Extant linkages between Shanghai crude oil and US energy futures: Insights from spillovers of higher-order moments Energy Econ. (IF 13.6) Pub Date : 2024-06-05 Ameet Kumar Banerjee, Andreia Dionisio, Ahmet Sensoy, John W. Goodell
This study is epicentral to analyzing the impact of futures volatility on portfolio and risk management, as extant literature indicates the challenges of using economic variables that fall short of forecasting volatility beyond lagged values. Further, higher moments may be better adaptive to signaling distress during market upheavals. This paper sources data from Bloomberg from March 26, 2018–April
-
Dynamic dependence and spillover among the energy related ETFs: From the hedging effectiveness perspective Energy Econ. (IF 13.6) Pub Date : 2024-06-05 Hao Ji, Muhammad Naeem, Jing Zhang, Aviral Kumar Tiwari
Due to the fundamental position of energy, the dynamics of the energy ETF markets are of great interest when facing unexpected event shocks. To explore the volatility spillovers within the energy ETF market and with other related markets under event shocks, we use the PCA method to extract macroeconomic factor series (ME) from four types of ETF return series. Then, we apply the DCC-GARCH-Copula model
-
How connected is the oil-bank network? Firm-level and high-frequency evidence Energy Econ. (IF 13.6) Pub Date : 2024-06-05 Yunhan Zhang, David Gabauer, Rangan Gupta, Qiang Ji
By introducing a new generalized forecast error variance decomposition (GFEVD) approach that splits the same into its contemporaneous and lagged components, we investigate the risk spillover effects of different order moments, derived from intraday data, for the top 10 banks and top 10 oil and gas companies in the U.S., covering the period from December 29, 2017 to December 30, 2022. The study finds
-
Tax holidays and the heterogeneous pass-through of gasoline taxes Energy Econ. (IF 13.6) Pub Date : 2024-06-05 Tsvetan Tsvetanov
-
African forex markets: Modeling their predictability and the asymmetric effects of oil and geopolitical risk Energy Econ. (IF 13.6) Pub Date : 2024-06-05 Shoujun Huang, Mariya Gubareva, Tamara Teplova, Ahmed Bossman
This study investigates the African forex (FX), geopolitical risk (GPR) and oil associations, resorting to the quantile-based causality, parametric quantile regression (QR), and non-parametric quantile-on-quantile regression (QQR) methodologies. We explore 16 major African currency markets. The sample contains daily data and spans from July 2000 through August 2023. Our results zoom on the differences
-
Green energy policies and energy poverty in Europe: Assessing low carbon dependency and energy productivity Energy Econ. (IF 13.6) Pub Date : 2024-06-05 Gonzalo H Soto, Xavier Martinez-Cobas
This study examines the dynamics of the transition to green economies in relation to energy poverty in European countries. By employing augmented mean group (AMG) and fully modified ordinary least squares estimations (FMOLS), we find empirical evidence that indicates the influence of variables representing the processes of transitioning to green economies on energy poverty. To further elucidate these
-
Second-best electricity pricing in France: Effectiveness of existing rates in evolving power markets Energy Econ. (IF 13.6) Pub Date : 2024-06-05 Clément Cabot, Manuel Villavicencio
The adoption of time-varying pricing in the French electricity market has been historically low despite their availability to consumers well before the deployment of smart metering. However, as the share of variable renewable electricity increases and carbon prices grow, the demand-side response will become increasingly important to achieve efficiency gains. Relying on the historical hourly consumption
-
A Tailored Derivative Instrument to Mitigate the Price-and-Quantity Risk Faced by Wind Power Companies Energy Econ. (IF 13.6) Pub Date : 2024-06-04 Maria de Fatima Barbosa, Alexandre Street, Bruno Fanzeres
The intermittent nature of wind generation combined with the well-known volatility of electricity spot prices expose Wind Power Companies (WPCs) committed to long-term forward contracts to the so-called price-and-quantity risk. Several instruments were designed in the past years to mitigate this risk exposure. However, most of them were mainly constructed to cope with only one of its parts, i.e., price
-
Green financial policy, technological advancement reversal, assessment of emission reduction effects Energy Econ. (IF 13.6) Pub Date : 2024-06-04 Xiaohong Chen, Yue Mao, Jixin Cheng, Ping Wei, Xiaoming Li
The construction of a green financial system is of great practical significance for promoting the high-quality development of China's green economy and accelerating the process of achieving the goal of carbon neutrality. To explore the innovation effect and the effect of pollutant emission reduction of green financial policies theoretically and further examined by empirical results, we construct an
-
Feasibility of satisfying projected biopower demands in support of decarbonization interventions: A spatially-explicit cost optimization model applied to woody biomass in the eastern US Energy Econ. (IF 13.6) Pub Date : 2024-06-04 Ashkan Mirzaee, Ronald G. McGarvey, Francisco X. Aguilar
Power generation from biomass (biopower) has experienced substantial growth in the United States. Although renewable and sustainably sourced biopower can reduce the carbon footprint of the electricity sector, there is a scarcity of analyses that simultaneously consider the financial feasibility and sustainability criteria of procured biomass. We developed a spatially-explicit optimization model to
-
Betting on war? Oil prices, stock returns, and extreme geopolitical events Energy Econ. (IF 13.6) Pub Date : 2024-05-28 Knut Nygaard, Lars Qvigstad Sørensen
We show that the ability of oil price changes to predict stock returns is limited to periods of extreme geopolitical unrest. Four events generate most of the predictability: the 1973 Arab-Israel war, the 1986 OPEC collapse, the 1990/91 Persian gulf war, and the 2003 invasion of Iraq. We also find that a market-timing trading strategy based on oil price changes typically generates insignificant abnormal
-
The role of index traders in the financialization of commodity markets: A behavioral finance approach Energy Econ. (IF 13.6) Pub Date : 2024-05-28 Camille Aït-Youcef, Marc Joëts
This paper investigates the impact of financialization on commodity prices across various markets, particularly over recent decades. We introduce a groundbreaking theoretical model that incorporates both chartist–fundamentalist traders and institutional investors, targeting trading signals in two distinct commodity markets. In alignment with empirical data, our model enables institutional investors
-
Insurer hedging amidst the interplay of black and green swans toward SDGs 3 and 7 Energy Econ. (IF 13.6) Pub Date : 2024-05-28 Shi Chen, Xiaoyu Duan, Shiu-Chieh Chiu, Jyh-Horng Lin
Amid regional conflicts and global warming, the interplay of catastrophic events (black swans) and sustainability issues (green swans) emerges, impacting sustainable insurance and environmental initiatives tied to Sustainable Development Goals (SDGs) 3 (Good Health and Well-being) and 7 (Affordable and Clean Energy). This paper develops a structure-break down-and-out option model to investigate insurer
-
Optimal timing of carbon capture and storage policies — A social planner’s view Energy Econ. (IF 13.6) Pub Date : 2024-05-27 Yiwen Chen, Nora Paulus, Xi Wan, Benteng Zou
Carbon capture and storage (CCS) has a critical role to play in the world’s quest for net zero, by mitigating greenhouse gas (GHG) emissions from major pollution sources. However, the deployment of CCS technologies involves significant costs. This paper studies the social costs of CCS initiatives and GHG damage, adopting the perspective of a central planner to determine the optimal deployment strategy
-
Consequences of the missing risk market problem for power system emissions Energy Econ. (IF 13.6) Pub Date : 2024-05-27 Emil Dimanchev, Steven A. Gabriel, Lina Reichenberg, Magnus Korpås
Liberalized power markets are characterized by a missing market problem: a limited availability of long-term contracts leaves risk-averse investors exposed to uninsured risk. We explore how this problem affects a power system’s capacity mix and overall emissions. For this purpose, we develop a new equilibrium generation expansion model that endogenously captures investors’ risk exposure in incomplete
-
Income and fuel price elasticities of car use on micro panel data Energy Econ. (IF 13.6) Pub Date : 2024-05-26 Carl Berry, Maria Börjesson
We estimate the income and fuel price elasticities of private car vehicle kilometres travelled (VKT) using fixed effects on registry micro panel data covering all Swedish households from 1999 to 2018. Such registry data, covering all individuals and cars in the country, are unique to Nordic countries and are comprehensive enough to allow fine segmentation of the population by both income groups and
-
Energy transition and non-energy firms’ financial performance: Do markets value capability-based energy transition strategies? Energy Econ. (IF 13.6) Pub Date : 2024-05-25 Selahattin Murat Sirin, Berna N. Yilmaz
Energy transition has become a major challenge that will shape the global agenda in the coming decades. In addition to governments and major energy firms, non-energy firms also play a significant role in the energy transition with their growing share in renewable energy supply and other pro-environmental investments. Using the Resource-based View and Dynamic Capabilities perspectives, we discuss non-energy
-
Green bonds: Fueling green innovation or just a fad? Energy Econ. (IF 13.6) Pub Date : 2024-05-25 Hanmin Dong, Lin Zhang, Huanhuan Zheng
This study investigates the impact of green bond issuance on green innovation and its underlying mechanisms. We find that green bond issuance promotes green innovation, with stronger effects observed in regions with weaker climate regulation, industries exhibiting better environmental performance, and firms with more concentrated ownership. Further analysis reveals that corporate green bonds facilitate
-
Speeches in the green: The political discourse of green central banking Energy Econ. (IF 13.6) Pub Date : 2024-05-25 Martin Feldkircher, Viktoriya Teliha
In this paper, we employ a keyword-assisted topic model to quantify the extent of climate-related communication of central banks. We find evidence for a significant increase in climate-related speeches by central banks, which address the topic mostly in parallel with issues related to financial stability, whereas monetary policy and price stability are less emphasized. Finally, we examine factors that