Global Transmission of Returns among Financial, Traditional Energy, Renewable Energy and Carbon Markets: New Evidence

Connections to world markets facilitate local markets developments to support more efficient capital allocation and greater investment and growth opportunities. Under the framework of cross-market rebalancing theory, in this study, we aim to systematically examine the market connections among world financial, energy, renewable energy and European carbon markets by measuring the return spillovers from 2008 to 2021. We find that the renewable energy market is more closely connected to the world financial and energy markets in the sense of the return transmission, while the carbon market is less connected to them. However, due to improved market regulations and determinations related to fighting climate change, the connections between the carbon market and other markets have gradually intensified. Plotting the return spillover indexes, we observe that strong return spillovers from the renewable energy market to other markets occurred when large investment plans were announced. Regarding the carbon market, regulation changes introduced by the EU Commission to improve and stabilize market environment induced intensified return transmission from carbon market to other markets. Another interesting finding is that the highly intensified return transmission among markets due to the COVID-19 crisis started to loosen when COVAX published the first interim distribution forecast on 3 February 2021.

Download Full-text

Research on Time-Varying Two-Way Spillover Effects Between Carbon and Energy Markets: Empirical Evidence From China

Frontiers in Energy Research ◽

10.3389/fenrg.2021.789871 ◽

2021 ◽

Vol 9 ◽

Author(s):

Sen Qiao ◽

Chen Xi Zhao ◽

Kai Quan Zhang ◽

Zheng Yu Ren

Keyword(s):

Crude Oil ◽

Spillover Effect ◽

Energy Markets ◽

Carbon Market ◽

Energy Market ◽

Time Varying ◽

Carbon Markets ◽

Oil Futures ◽

New Energy ◽

Crude Oil Futures

With the improvement of China’s carbon emission trading system, the spillover effect between carbon and energy markets is becoming more and more prominent. This paper selects four representative pilot carbon markets, including Beijing (BEA), Guangdong (GDEA), Hubei (HBEA) and Shanghai (SHEA). And three representative energy markets, including Crude Oil Futures (SC), power index (L11655) and China Securities new energy index (NEI). Combining the rolling window technology with DY spillover index, set a 50-weeks rolling window to measure the spillover index, and deeply analyze the time-varying two-way spillover effect between China’s carbon and energy markets. The results show that the spillover effect between China’s carbon and energy markets has significant time variability and two-way asymmetry. The time-varying spillover effect of different carbon pilot markets on the energy market has regional heterogeneity. The volatility spillover effect of Beijing and Shanghai carbon markets mainly comes from the crude oil futures market, Guangdong carbon market mainly comes from the new energy market, and Hubei carbon market mainly comes from crude oil and electricity market. The above research results contribute to the prevention of potential risk spillover between carbon and energy markets, which can promote the establishment of China’s unified carbon market and the prevention of systemic financial risks in energy market.

Download Full-text

Legal and economic aspects of Ukrainian enterprises activity at the European renewable energy market

Investment Management and Financial Innovations ◽

10.21511/imfi.14(2).2017.07 ◽

2017 ◽

Vol 14 (2) ◽

pp. 71-78 ◽

Cited By ~ 2

Author(s):

Sergiy Bilotskiy ◽

Nicole Danylova ◽

Olena Grinenko ◽

Oleksandra Karmaza ◽

Daria Koucherets

Keyword(s):

Renewable Energy ◽

Alternative Energy ◽

Current Trend ◽

Energy Markets ◽

European Market ◽

Energy Market ◽

Market Regulation ◽

Alternative Energy Sources ◽

Solid Biofuels ◽

Regulation Mechanisms

The article deals with a current trend of the global energy market, which is characterized by rising tension in relations between the performers of the energy market regulation mechanisms, and it leads to the emergence of alternative energy sources. The article is called to identify the causes of renewable energy markets nascence, to make comparative description of Ukrainian and European Renewable Energy Markets attractiveness, and to characterize the state policy change in a renewable energy market. Different interpretation of nature and classification of the field of renewable energy in foreign and Ukrainian approaches shows the problem of legal criteria of renewable energy markets regulation. It is proved the existence of double barrier penetration of the European market for renewable energy for Ukrainian companies, which includes compliance with the accepted EU Directives and compliance with the Rules of each member individually. The presence of clearly defined standards and certificates of quality for the European market allows producers to show the competitiveness of Ukrainian products in the international market and stimulate Ukrainian manufacturers. The presence of clearly formulated laws, stable and balanced political and legal environment of the EU allows Ukrainian producers of renewable energy to develop such a strategy that considers the time factor, as the primary parameter of competitiveness in international business. The market of solid biofuels in EU is under formation, its development timeframe and uncertainty of environmental risks becoming is especially important for Ukrainian producers.

Download Full-text

Investigating Preconditions for Sustainable Renewable Energy Product–Service Systems in Retail Electricity Markets

Energies ◽

10.3390/en14071877 ◽

2021 ◽

Vol 14 (7) ◽

pp. 1877

Author(s):

Widha Kusumaningdyah ◽

Tetsuo Tezuka ◽

Benjamin C. McLellan

Keyword(s):

Renewable Energy ◽

Electricity Markets ◽

Service Systems ◽

Energy Market ◽

Energy Product ◽

Simulation Based Design ◽

Product Service ◽

Simulation Based ◽

Sustainable Renewable Energy ◽

Product Service Systems

Energy transitions are complex and involve interrelated changes in the socio-technical dimensions of society. One major barrier to renewable energy transitions is lock-in from the incumbent socio-technical regime. This study evaluates Energy Product–Service Systems (EPSS) as a renewable energy market mechanism. EPSS offer electricity service performance instead of energy products and appliances for household consumers. Through consumers buying the service, the provider company is enabled to choose, manage and control electrical appliances for best-matched service delivery. Given the heterogenous market players and future uncertainties, this study aims to identify the necessary conditions to achieve a sustainable renewable energy market. Simulation-Based Design for EPSS framework is implemented to assess various hypothetical market conditions’ impact on market efficiency in the short term and long term. The results reveal the specific market characteristics that have a higher chance of causing unexpected results. Ultimately, this paper demonstrates the advantage of implementing Simulation-Based Design for EPSS to design retail electricity markets for renewable energy under competing market mechanisms with heterogenous economic agents.

Download Full-text

Renewable Energy Deployment and COVID-19 Measures for Sustainable Development

Sustainability ◽

10.3390/su13084418 ◽

2021 ◽

Vol 13 (8) ◽

pp. 4418

Author(s):

Miraj Ahmed Bhuiyan ◽

Jaehyung An ◽

Alexey Mikhaylov ◽

Nikita Moiseev ◽

Mir Sayed Shah Danish

Keyword(s):

Renewable Energy ◽

Short Term Memory ◽

External Environment ◽

Energy Markets ◽

Energy Market ◽

Short Term ◽

The United Kingdom ◽

Long Short Term Memory ◽

Restrictive Measures ◽

The Impact

The main goal of this study is to evaluate the impact of restrictive measures introduced in connection with COVID-19 on consumption in renewable energy markets. The study will be based on the hypothesis that similar changes in human behavior can be expected in the future with the further spread of COVID-19 and/or the introduction of additional quarantine measures around the world. The analysis also yielded additional results. The strongest reductions in energy generation occurred in countries with a high percentage (more than 80%) of urban population (Brazil, USA, the United Kingdom and Germany). This study uses two models created with the Keras Long Short-Term Memory (Keras LSTM) Model, and 76 and 10 parameters are involved. This article suggests that various restrictive strategies reduced the sustainable demand for renewable energy and led to a drop in economic growth, slowing the growth of COVID-19 infections in 2020. It is unknown to what extent the observed slowdown in the spread from March 2020 to September 2020 due to the policy’s impact and not the interaction between the virus and the external environment. All renewable energy producers decreased the volume of renewable energy market supply in 2020 (except China).

Download Full-text

Renewable Energy Sources as a Factor of Transformation of the Retail Energy Market

2020 International Conference on Electrotechnical Complexes and Systems (ICOECS) ◽

10.1109/icoecs50468.2020.9278509 ◽

2020 ◽

Author(s):

Damir Gainanov ◽

Ekaterina Kashirina ◽

Yana Khabirova

Keyword(s):

Renewable Energy ◽

Renewable Energy Sources ◽

Energy Sources ◽

Energy Market

Download Full-text

The common energy market of the European Union – utopia or reality?

Proceedings of the International Conference on Business Excellence ◽

10.1515/picbe-2017-0010 ◽

2017 ◽

Vol 11 (1) ◽

pp. 93-102 ◽

Cited By ~ 1

Author(s):

Ana-Maria Iulia Şanta

Keyword(s):

European Union ◽

Renewable Energy ◽

European Commission ◽

Social Impact ◽

Clean Energy ◽

Energy Market ◽

The European Union ◽

Legal Provisions ◽

Energy Union ◽

The Common

Abstract The European Commission has the initiative to foster the sector of renewable energy and to build an Energy Union, with a common energy market at the level of the European Union, but is this only an utopic vision or is this possible to achieve? The topic of clean energy is very new and of great interest for the European Union, which is shown by the fact that the European Commission recently adopted on the 30th November 2016 the package “Clean Energy for All Europeans”, which contains proposals for the modernization of the energy market at the level of the European Union. But which are the challenges such a project is confronted with? According to the literature, such challenges are related to the process of liberalization of electricity markets. Conflicts between national interest and international actors of the energy market might occur. Due to the oligopolistic structure of the energy market, there are several barriers to the market entry. In order to answer to the research questions, case studies regarding the liberalization of the energy market will be analyzed in a comparative manner, offering an international overview. Furthermore, the legal provisions on which the common energy policy of the European Union relies, will be analyzed, as well as their economic and social impact. The package “Clean Energy for All Europeans” comprises a proposal of the revised Renewable energy Directive, energy efficiency measures and issues related to the Energy Union Governance. It contains as well proposals for the electricity market design, which will be analyzed and the present paper outlines the contribution of this proposal in building a common energy market of the European Union. What role does competition play in implementing the common energy market of the European Union? Which role do competition authorities have in this context? These are interesting aspects to be analyzed in the present paper.

Download Full-text

Negotiating 21st Century Rules on Energy: What Is at Stake for the European Union, the United States and the BRICS?

The Journal of World Investment & Trade ◽

10.1163/22119000-12340095 ◽

2018 ◽

Vol 19 (3) ◽

pp. 415-443 ◽

Cited By ~ 1

Author(s):

Ilaria Espa ◽

Kateryna Holzer

Keyword(s):

United States ◽

European Union ◽

Renewable Energy ◽

The United States ◽

Energy Market ◽

The European Union ◽

Transatlantic Trade ◽

Energy Trade ◽

Trade And Investment ◽

The Eu

Abstract In the context of the Transatlantic Trade and Investment Partnership (TTIP), the European Union (EU) has taken the lead in promoting the inclusion of a specific chapter on energy trade and investment in order to enhance energy security and promote renewable energy. Irrespective of the success of the TTIP negotiations, the EU proposal can contribute to developing multilateral rules on energy trade and investment. This is especially important given the increased number of energy disputes filed by the EU and the United States against other leading energy market players, including the BRICS. This article provides a normative analysis of the new rules proposed by the EU and reflects on potential responses of BRICS energy regulators. It argues that, while these rules are unlikely to immediately affect BRICS energy practices, they may eventually be ‘imported’ in BRICS domestic jurisdictions in order to promote renewable energy and attract investment in energy infrastructure.

Download Full-text