Abstract
This paper evaluates the effect of energy trading networks on the volatility of coal, oil, natural gas, and electricity. This research conducts a longitudinal analysis using a time series of static coal trading networks to generate a dynamic trading network, and uses the component causality index as a leading indicator of systemic risk. This research finds out that the component causality index, based on degree centrality, anticipates or moves together with coal volatility and in less degree with gas and electricity volatility during the period 2007–14. The broad impact of this research lies in the understanding of mechanisms of the instability and risk of the energy sector as a result of a complex interaction of the network of producers and traders.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
