To achieve ambitious energy-climate targets, all EU member states have introduced policies to support the market introduction of renewable energy sources (RES) generation. Motivated to close the gap of the merit order effect (MOE) in less mature Central and South East European electricity markets, we empirically confirm economic theory predictions that in the short run, an increase in RES generation reduces electricity prices. The merit order effect is initially econometrically confirmed and quantified. Different econometric model specifications are estimated to differentiate the MOE caused by wind and solar generation and to differentiate the MOE on high-load and low-load days. In addition, we simulate the adjustment of the realised day-ahead electricity prices to the no-RES generation scenario. Modern statistical methods are applied to bridge the gap in the limited public data availability to solve simulation models used in the power system or agent-based simulations. A family of data mining algorithms is applied for the merit order estimation used in the dynamic adaptation of the generation mix to the omitted RES generation. The estimated energy imbalance caused by the excluded RES generation is therefore compensated by the additional conventional generation dispatch according to the estimated power plant merit order. The estimated supply curves for each generation technology assist the reasoning behind the established MOE in econometric models. Based on our findings, policymakers should prioritise policies that facilitate the integration of RES into their electricity markets, which would in turn accelerate energy transition. With increasingly growing shares of renewables in the system, the governments need to rethink the support scheme, where the emphasis should be placed on efficiently integrating renewables in the power system by taking into account temporal and spatial dimensions.

This study employs Time-Varying Parameter Vector Autoregression (TVP-VAR) to analyze spillover effects among ten financial instruments spanning 395 weeks, encompassing significant events such as the 2016/17 cryptocurrency surge, the COVID-19 pandemic, and the Ukraine conflict. The research highlights Bitcoin's influence on equities and commodities, influenced by evolving factors, regulatory uncertainties, and market sentiment. Equity indices both transmit and absorb shocks, while commodities intensify market volatility. Overall, Bitcoin notably impacts speculative assets such as equity indices, with a moderated influence on less speculative assets, emphasizing its pivotal role in dynamic financial markets subject to changing regulations.

In this paper we analyse the effectiveness of fiscal policies with respect to macroeconomic stabilisation during the COVID-19 pandemic in the small open economy of Slovenia. Using SLOPOL11, an econometric model of the Slovenian economy, we simulate the development of the its economy during the 2020s under alternative assumptions about future pandemic-related shocks. We also determine optimal fiscal policies to combat the effects of the pandemic and to stabilise the economy under two scenarios for the future course of developments under COVID-19. Our simulations show that those public spending measures that entail both demand- and supply-side effects are more effective at stimulating real GDP and increasing employment than pure demand-side measures. Successful stabilisation policies should thus contain a supply-side component in addition to a demand-side component.

In this paper, we investigate the impact of imperfect financial markets on the business investment of Slovenian non-financial companies. We focus on exploring the borrower's balance sheet channel, through which companies’ worsening balance sheets, reduce the availability of external finance. The effects of exogenous shocks are, therefore, amplified through the financial accelerator mechanism and affect the overall economy. Using data from annual reports of Slovenian non-financial companies from 2005 to 2020, we estimate a panel VAR model on various sample definitions. The results confirm the existence of the balance sheet channel, as the impulse response of investment to cash flow shocks is statistically significant. This effect is especially noticeable during the period from 2006 to 2012. Our findings suggest that financial frictions affect the availability of external financing and, consequently, the investment activity of Slovenian non-financial companies. Policymakers should prioritize measures to ensure adequate external financing, particularly for financially constrained firms, to mitigate the negative impact of reduced economic activity during periods of financial distress and economic downturns.

The poor live paycheck to paycheck and are repeatedly exposed to strong cyclical income fluctuations. We investigate whether such income fluctuations affect their risk preference. If risk preference temporarily changes around payday, optimal decisions made before payday may no longer be optimal afterward, which could reinforce poverty. By exploiting social security payday cycles in the United States, we find that the poor relying heavily on social security become more risk tolerant before payday. More than cognitive decline before payday, the deterioration of mental health and relative deprivation are likely to play a role. We find similar evidence among the Japanese elderly. (JEL D81, D91, G51, I12, I32, J14, J31)

AbstractThis short communication contributes to the current debate by exploring bibliometric data related to green recovery policies to discover the thematic linkages driving sustainable transitions and how these linkages can be navigated to encourage a successful and rapid green transformation. Our discussion illuminated three main trajectories of recent research that deviate from pre-COVID-19 themes and trends: managing natural resources at multiple levels, technology science for raw material scarcity resolution, and advancing low-carbon policies with data-driven models. This study provides a robust evidence-based framework for policymakers as they design green stimulus packages that can effectively facilitate and give long-term support to a green recovery. Specifically, the results affirm the necessity of devising novel stimulative regulations, investing in the modification or supplement of existing infrastructure (e.g. energy storage and grid infrastructure for reliable use of renewable energy sources) and building cities that are more resource-efficient and climate-resilient. Finally, the study also underscores the advances made in related European Union legislation and identifies potential challenges associated with the green transition.

The aim of this valuation study was to produce a value set to support the use of EQ-5D-5L data in decision making in Slovenia. The study design followed the published EuroQol research protocol, and a quota sample was defined according to age, sex, and region. Overall, 1012 adult respondents completed 10 time trade-off and seven discrete choice experiment tasks in face-to-face interviews. The Tobit model was used to analyse the composite time trade-off (cTTO) data in order to generate values for the 3125 EQ-5D-5L health states. The data showed logical consistency, with more severe states being given lower values. The greatest disutility was shown in the pain/discomfort and anxiety/depression dimensions. In the EQ-5D-5L value set, the values range from -1.09 to 1. With the exception of UA5 (unable to perform usual activities), all other levels on all health dimensions were statistically different from 0 and from each other.Compared with the existing EQ-5D-3L value set, there is a slightly lower share of 'worse than dead' states (32.1% compared with 33.7%) and the minimum value is lower. Results have important implications for users of the EQ-5D-5L in Slovenia and regions. It is a robust and up-to-date value set and should be the preferred value set used in adults in Slovenia and in neighbouring countries without their own value set.

The digital competitiveness of regions of EU member states is measured by the Digital Economy and Society Index (DESI), a composite index summarizing the progress made in connectivity, digital skills, internet use by citizens, digital integration of enterprises, farms and digital public services, while at the local government level there is currently no single indicator measured on a regular basis. Based on recent international and national researches, it can be concluded that with the development of digital technology, a significant increase in services and solutions available to citizens digitally is expected. Recent positive experiences of EU member states, which have been analyzed in previous research papers, show that the creation of jobs in agricol sectors in rural areas contributes to increasing household incomes. The objective of our study is to analyze and implement the methods and data sources for calculating DESI indicators at the level of local administrative units in the Republic of Moldova, in the context of the National Program for the European Village, launched in spring 2022. The results of the study will be the development of recommendations for local administrations on the use of the DESI index to coordinate the European evaluation parameters. The value of this work is in reinforcing activities for localisation of smart infrastructure and spatial data taking in consideration the DESI index and innovative products of the national Innovation Centres in innovative economics, stimulating investments in the creation of Smart Villages.

Covid-19 pandemic is blamed to be the one which steal one country’s generation because of its severe impacts in economic growth. The study investigates the determinants of output growth during Covid-19 pandemic in six ASEAN countries e.i. Indonesia, Singapore, Thailand, Malaysia, the Philippines, and Viet Nam over the 2020:I - 2021:I period. This study utilises secondary data with panel regression pooled least square (common effect) estimation technique to answer whether the independent variables e.i. central bank policy rate (cbpr), total positive case of Covid-19 (covid), and credit default swap (cds) have significant impact on those six ASEAN countries.We find that cbpr, covid, and cds impact significantly (critical value 95%) on output growth in the six Asian countries. However, cbpr and cds still become puzzle which have a positive relationship with output growth, that might be normal tot the crisis situation. We recommend to include innovation as one prominent factor boosting the growth.