Energy Investment Research Articles

Where does employment due to investments in wind energy really occur?

ABSTRACT Growing concern about climate change has led to a significant volume of planned investments in wind energy in the European Union. This work focuses on the employment effects associated with deploying this technology in a region (Aragon, Northeastern Spain) among the top in Spain in generation and even more in wind investments in the country. To this end, we have created a multi-regional input-output (MRIO) dataset and model in order to locate and explain the dynamics of those employment effects. The contribution to the existing literature consists of the fine-grained scale across time, spatial locations, and sectors of our model, dataset, and hence results. For greater robustness, we have analyzed the effects under different assumptions or scenarios depending on the temporal and conceptual scope and the geographical origin of the production of goods and services associated with the investments. The study estimates the employment supported specifying the economic sectors involved, the spatial locations where those jobs will most likely exist and how long they would last. With clear applicability to other contexts, the article enriches, the policy dilemmas in energy transition, and more specifically the currently hot social discussion on the local and regional effects, impacts, benefits, costs, etc. of renewable energies, which are implying social controversy.

Investments in Renewable Energy in Rural Communes: An Analysis of Regional Disparities in Poland

Although energy transformation is a widely discussed topic, there is a dearth of research on the role of rural communes in implementing that concept in Poland, a country where rural areas account for more than 90% of the total landmass. Most research projects are focused on larger local government units, such as cities, whereas rural communes’ role in the development of local energy policies and impact on the development of renewable energy sources (RESs) is often disregarded. Therefore, this study extends the existing literature resources with a view to bridging that gap by assessing rural communes’ investment activity in the context of the Polish energy transformation, with particular emphasis on regional differences in RES investments financed with Union funds. Therefore, the main purpose of this study is to assess the contribution of rural communes to the Polish energy transformation process, with a particular focus on regional differences in renewable energy investments financed with European Union funds in the successive seven-year financial perspectives 2007–2013 and 2014–2020. The study aimed to answer the following key research questions: how does the level of rural communes’ investment activities related to renewable energy development compare to that of other commune types? What are the regional differences in rural communes’ investment activities related to renewable energy? What are the main factors affecting rural communes’ investment activity in regions most involved in the development of renewable energies? The study relies on data from the Ministry of Development Funds and Regional Policy and from the Local Data Bank of the Central Statistical Office. The dataset was processed with the use of descriptive statistics methods and Ward’s method with a view to identifying regional patterns and conditions for the development of renewable energy investments. This study focuses on the investment activities of rural communes in Poland related to RESs financed with European Union funds. The empirical research results highlight rural municipalities’ crucial role in developing RES, emphasizing their high investment activity and significant regional differences. Municipalities from the eastern Polish provinces of Lublin and Podlasie have successfully secured EU funds for RES development. They have implemented numerous projects, primarily related to solar energy.

Editor's view: Is the brain's perception of ideas an underappreciated human sense?

Humans have developed sensory organs for their 'major' senses and specific neuronal receptors for a number of additional senses. Although information from sensors is integrated and processed in the brain, the brain itself has not been proposed as a sensory organ associated with a particular sense - at least not in Western culture or scientific literature. Perception of ideas has many elements of a separate sense, with the brain being a primary sensory organ. I support this notion based on 17 years of experience in the application of the Child Health and Nutrition Research Initiative (CHNRI) method for setting research priorities, which resulted in more than 150 publications involving thousands of experts who prioritised more than 20 000 research ideas. This body of work allows for the generalisation of the following key concepts: defining an idea in the context of the brain's sensory perception; defining the point of origin, sensory qualities, and common types of ideas; considering responses of the body to the brain's sensory exposure to ideas; and defining the key criteria that the brain uses to discriminate between and prioritise ideas. The human brain is continuously being exposed to ideas, which can be self-generated, triggered by information from other sensors, or introduced from the external world. From the brain's sensory perspective, ideas are competing possibilities of purposeful activities that, if followed, would be expected to result in an alternative version of the future. Pursuing ideas tends to drive most of human activity. It requires prioritising between short-, mid-, and long-term investment of energy and time. The brain's sensory role is to continuously assess many competing ideas and prioritise between them based on motivational/emotional ('attractiveness'), operational/rational ('feasibility') and outcome-related perspective ('impact'). Exposure to new ideas may instigate physiological and psychological responses, ranging from enthusiasm and excitement to feeling a threat or fear. Ideas can be used to mobilise large groups of people whose brains respond with excessive enthusiasm that can sometimes be fanatical. The judgment on the attractiveness, feasibility, and potential impact of ideas is affected by education, experience, and cognitive abilities. This sense may be sharpened through an increased level of expert knowledge and experience. Misinformation and disinformation are dangerous because they affect the brain's perception of ideas. Impairment of this inherent sense may perhaps contribute to some mental health issues. The proposed view of the brain as the sensor of ideas could lead to many qualitative or quantitative experiments to further explore the properties of this sense in both individuals and populations, establishing 'the science of ideas'.

Impact of Fossil Fuel, Renewable Energy, and Public-Private Partnership Investments on Sustainable Growth and Carbon Emissions in Pakistan

This paper examines the longer-term and causal impact of public-private partnership (PPP) investment in energy and technological innovation on consumption-based carbon emissions in Pakistan during the period from 1990 to 2023. This analysis includes important covariates, such as international trade (exports and imports), economic growth (GDP), and renewable energy consumption, to explore the factors influencing Pakistan's carbon emissions. The theoretical lens for the study is based on the Environmental Kuznets Curve (EKC) theory, which posits that economic growth can initially lead to rising carbon emissions, but stronger long-term technological development and a transition towards renewable energy would turn the tide against environmental degradation. Moreover, Transition Theory emphasizes the importance of PPPs and technological innovation in transitioning Pakistan's energy system from fossil fuels to sustainable energy solutions. By employing advanced estimation techniques, including the Maki cointegration test (1996) that accounts for multiple structural breaks, the research shows that the variables in question are bound in a long-run equilibrium relationship. An export and consumption of renewable energy indicate significantly reduced consumption-based carbon emissions, while more imports, GDP, and (PPP) investment in non- renewable energy positively relates to increased emissions according to results for 182 countries. Overall, the study presents solid empirical proof that trade, technological changes, and a move toward renewable energy can help lower carbon emissions in Pakistan. The authors further recommend the establishment of policies to promote renewable energy investments via PPPs, foster technological progress in low-carbon technologies, implement carbon pricing instruments, such as taxes on energy-intensive goods, and harmonize trade policies to promote low-carbon exports"

Application of Two-Step Entropy–TOPSIS Method and Complete Linkage Clustering for Water-Pumping Windmill Investment on Thailand Peninsula

This study focuses on identifying suitable areas for the installation of water-pumping windmills in Thailand, which require wind speeds of at least 4 m/s to operate efficiently. A simple combined approach is introduced, integrating the Entropy–TOPSIS method complete linkage clustering to prioritize and categorize potential locations. Out of 271 initial areas, 28 have been selected based on their ability to meet the 4 m/s wind speed threshold. The Entropy–TOPSIS method first evaluates these areas based on monthly wind speed and agricultural area. The analysis reveals that regions with higher wind speeds generally score better for wind energy potential, while areas with larger agricultural spaces tend to score higher for farming suitability. The final integrated scores show that agricultural area is more significant, with a weight of 0.7788, compared to the wind speed weight of 0.2212. The areas are then ranked, and complete linkage clustering groups them into six categories, from the most to the least suitable for windmill installation. A sensitivity analysis confirms the robustness of the clustering method, as the group composition remains stable despite minor changes in weight adjustments. This approach simplifies decision-making for sustainable energy investments in Thailand agriculture sector.

Expansion Direction Selection of the Coal-to-Olefin Industrial Chain in Inner Mongolia from the Value Chain Perspective

Inner Mongolia is a key region for China’s clean energy production and a demonstration base for modern coal chemical industry production. However, modern coal chemical industry development in this region faces many problems, such as complex downstream product structures, low value-added products, and severe environmental pollution. With limited future coal allowance in the coal chemical industry, the scarce available coal will likely be allocated to fields with strong product competitiveness to enhance industrial chain value. Given this, the Inner Mongolia coal-to-olefin industrial chain is selected to explore its strategic expansion directions. An improved value chain accounting method is proposed to account for the value of each segment of the coal-to-olefin industrial chain in Inner Mongolia from 2011 to 2022. The improved value chain accounting method is then combined with system dynamics to construct a model for selecting the expansion directions of the coal-to-olefin industrial chain based on the value chain perspective. Finally, the differences in the value of each future expansion direction are analyzed through scenario simulation and comparison. The most important result is that the higher the extension of the coal-to-olefin industry chain in Inner Mongolia, the higher the value of the industry chain. Carbon punishment is the most important factor affecting the value of the industry chain, and enterprises and governments should increase investment in innovation and renewable energy. Accordingly, this study provides a decision-making method for selecting the optimal expansion direction of the modern coal chemical industrial chain in Inner Mongolia.

Towards Sustainability: Understanding Norway’s Ecological Footprint Through the Framework of the Environmental Kuznets Curve

With rising concerns about environmental sustainability, examining the economic-environmental nexus is essential. This study investigates the relationship between economic growth (GDP), renewable energy consumption (RENC), urbanization (URB), and foreign direct investment (FDI) with Norway’s ecological footprint from 1990 to 2023. Guided by the Environmental Kuznets Curve (EKC) hypothesis, we aim to understand how these factors influence Norway’s environmental impact over time. Using an Autoregressive Distributed Lag (ARDL) model, the study captures both the short- and long-term effects of these variables on the ecological footprint, and model stability is confirmed through the Cumulative Sum of Squares (CUSUM) test. The findings reveal a U-shaped EKC pattern, where initial economic growth reduces the ecological footprint, but beyond a certain GDP threshold, environmental pressures increase. Renewable energy consumption is shown to lower the ecological footprint significantly, supporting Norway’s sustainability goals. Conversely, FDI is associated with increased environmental impact, potentially due to resource-intensive projects. These insights underscore the need for balanced policies that harmonize economic development with environmental preservation. Policymakers are encouraged to foster green FDI, prioritize renewable energy investments, and implement sustainable urban planning to maintain Norway’s trajectory toward ecological sustainability.

Public Energy R&D Spending and Green Energy for Sustainable Development: COP28 Perspective of G7 Economies

Achieving sustainable development goals (SDGs) is one of the top priorities for countries worldwide, and the recent COP28 has focused mainly on achieving sustainable development via clean energy investment financing. However, countries and regions still struggle to find various policy-level indicators to achieve sustainability engagement. In this context, finding the right combination of policy indicators becomes crucial. Therefore, the current study seeks to identify the key drivers of sustainability for the G7 economies by utilizing data from 1990–2019. This study employed the cross-sectional autoregressive distributed lag (CS-ARDL) panel time series method of estimating primary results and a novel sustainable development index as the dependent variable. The study revealed that public energy R&D budgets, increasing income levels, improving the political risk index, and promoting clean energy are important for achieving sustainable development in the G7 countries and that the depletion of natural resources has an adverse influence on sustainability. These empirical results are supported by various economic and environmental theories, i.e., the environmental Kuznets curve, the innovation theory of sustainability, the Dutch disease hypothesis, and the political economy of development and energy transition theory. Based on these findings, energy investment is recommended, especially for clean energy projects, and increasing income levels via sustainable economic activities to achieve sustainability in the G7 economies.

Economic Growth with Nonrenewable and Sustainable Energy

Optimal depletion of nonrenewable energy added to the neoclassical model dampens economic growth as its price rises at the rate of the capital return. The present paper introduces sustainable energy requiring its own capital with the Inada condition requiring both energy inputs are necessary for production. Production is developed in terms of factor shares and price elasticities. Investment in sustainable energy offers relief from the rising nonrenewable price but lowers consumption or capital growth. Simulations of the U.S. economy foresee a smooth transition with growth paths depending on the two saving rates and factor price substitution.

The Clean Energy-Ecology Interrelatedness: Evidence from the S&P Dow Jones Indices

In the context where “sustainable energy” promotes “environmental sustainability,” and as private investment in clean energy gains traction as a vital measure for climate change mitigation, evaluating its impact on ecology-focused firms is essential. This study examines the “clean energy-ecology nexus,” investigating whether the rapid growth of clean energy technologies driving sustainable energy transitions positively influences ecology through effective water and waste management practices and optimized industrial systems. Understanding this interrelationship within the frequency domain allows for informed conclusions. We apply a recently developed frequency-domain Granger-causality inferential framework to analyze the clean energy-ecology nexus in both unconditional and conditional contexts. The results suggest that clean energy technologies benefit ecology, reinforcing the connection between clean energy and ecological health.

Natural Selection after Severe Winter Favors Larger and Duller Bluebirds.

AbstractExtreme cold events, which have become more frequent, can revert the direction of long-term responses to climate change. In 2021, record snowstorms swept the United States, causing wildlife die-offs that may have been associated with rapid natural selection. Our objective was to determine whether the snowstorms caused natural selection in Eastern Bluebirds (Sialia sialis). To test which mechanism most influenced their survival, we measured the morphology and coloration of fatalities and survivors at three sites. Survival was associated with a longer tarsus and with a wider, longer, and deeper beak, in support of the starvation and thermal endurance hypotheses. Additionally, bluebirds with more-ornamented plumage were less likely to have survived, perhaps because of an early energy investment in mate and site acquisition. As bluebirds encounter increasingly warm summer conditions, the longer extremities favored during the snowstorms may continue to be favored through their thermoregulatory benefits. However, the dull plumage coloration favored by natural selection during the snowstorms may be opposed by sexual selection benefits of more-ornamented plumage. Overall, responses to extreme events are difficult to predict from responses to long-term climate change, and responses to one event, such as the 2021 snowstorms, may not predict responses to a future extreme event.

Linking climate change, energy transition and renewable energy investments to combat energy security risks: Evidence from top energy consuming economies

Linking climate change, energy transition and renewable energy investments to combat energy security risks: Evidence from top energy consuming economies

Oil rents, renewable energy and the role of financial development: Evidence from OPEC+ members

This study examines the threshold and moderating effects of oil rents on renewable energy consumption in OPEC+ members for different financial development indicators. For this, dynamic panel threshold and GMM estimators are employed for the time period 1999-2019. The empirical findings of the analysis reveal significant and negative threshold and moderating effects for financial market and total financial development, but not for financial institution development. Specifically, oil rents are found to reduce renewable energy consumption, with this negative effect becoming more pronounced at higher levels of financial market and total financial development. Overall, the results do not support the energy transition theory for OPEC+ members for which revenues from oil rents are transferred towards renewable energy investments. Rather, the presence of lobbying influences and inadequate support from financial markets and institutions is validated. These findings provide an additional debating point on the role of oil endowments on sustainable growth.

Challenges of Environmental Business Practices: A Proposed Sustainable Green Industrial Development Model for Manufacturing Enterprises in Guangdong Province, China

Grounded in Institutional Theory, Resource-Based View (RBV), and Diffusion of Innovation Theory, the study examines how SMEs navigate resource constraints, supply chain management, regulatory frameworks, and awareness gaps in pursuing sustainable green development. The research utilizes a quantitative-descriptive approach with a causal-comparative research design and employs purposive sampling to select 303 SME owners from Guangdong Province, China. Data were collected through a structured survey focusing on business practices like energy-efficient technologies, waste minimization, partnering with environmentally responsible suppliers, water-saving technologies, integrating environmental considerations into product designs, and renewable energy investment and implementing an Environmental Management System (EMS). Findings reveal that SMEs recognize the importance of environmental practices, and they face less challenges in resource allocation, awareness, supply chain management and regulatory landscape.

A review of the limitation of legitimate expectation principle in FET Claims in energy regulatory disputes: Can a balance be achieved?

This article explores the intricate interplay between the right of states to regulate in the context of environmental regulations aimed at decarbonization and an investor's right to investment protection, particularly focusing on the Fair and Equitable Treatment (FET) standard in international investment law. With the increasing importance of environmental regulations such as the US Greenhouse Gas Standards and Guidelines for Fossil Fuel-Fired Power Plants, in the transition to cleaner energy sources, the potential economic impacts on investments and resulting investment disputes could be huge, making the balancing of these competing interests a topical issue. The article delves into the prominence of the FET standard in investment protection and its evolution in international investment law. It argues that the limitation on the legitimate expectation element of the FET standard in modern times poses challenges in balancing states' rights to regulate with the protection of foreign investments in decarbonization disputes. The author asserts that recent developments in international investment law, exemplified by treaties like the EU-Canada Comprehensive Economic and Trade Agreement (CETA) and the United States-Mexico-Canada Agreement (USMCA), signal a shift towards prioritizing states' right to regulate over investment protection. By analyzing the limitations on legitimate expectation and investment protection in modern times and the implications for energy investments in the era of decarbonization, the article aims to shed light on the complexities of reconciling the competing interests of states and investors in the evolving landscape of international investment law. Ultimately, this author contends that achieving a balance between these interests is increasingly challenging and may require a reevaluation of the prevailing norms in investment protection.

Dynamic relationships between inflation, industrial production, and freight rates in the EU: A wavelet coherence and causality analysis

This study investigates the impact of maritime transport costs on macroeconomic indicators in the European Union (EU) economy. Using data for the period between June 2002 and April 2024, the dynamic relationships between the Baltic Dry Index, the Baltic Dirty Tanker Index, and the Baltic Clean Tanker Index and EU inflation and industrial production are analyzed using wavelet coherence analysis and the Breitung-Candelon frequency domain causality test. The results show that maritime transport costs significantly impact EU inflation and industrial production, especially during periods of economic crisis and shocks. The study suggests that the EU needs to strengthen its supply chain management, diversify its logistics infrastructure, and develop strategies to reduce energy costs. Proactive and sustainable policy recommendations for the EU are also presented to increase the predictability of maritime transport costs. Our study emphasizes that the EU needs to make structural investments in energy and logistics to ensure price stability. It suggests that the EU should monitor and integrate transport costs into economic policies.

UK Environmentally Sensitive Businesses SDG’s Disclosure in their Sustainability Reports, Websites and Social Media

This study examines the relationship between financial investment, shareholder preference, corporate social responsibility (CSR) performance and life satisfaction for BP and Shell within the UK, together with their alignment with specific Sustainable Development Goals (SDGs). about, using regression analysis, in both projects Hypotheses were tested to assess the significance of these predictors in the performance of CSR developed. The results showed that financial investment, shareholder ownership, and social satisfaction did not significantly predict CSR performance for BP and Shell. Furthermore, there were no significant differences in the impact of these predictors between the two companies. Further research revealed Shell’s strong commitment to SDG 7 (Affordable and Clean Energy) and SDG 13 (Climate Action), with both initiatives drawing on Shell’s significant investments in renewable energy and climate recognition in the management system established him as a leader in sustainable development efforts. BP’s goal of achieving net zero emissions by 2050, especially focused on SDG 7 and SDG 12 (Responsible Consumption and Production), this proposal was adopted comparing the two sectors, Shell showed significant advantages, which can be attributed to its diversified capabilities and its strong alignment with the sustainability objectives of BP, while growing largely, it faces significant financial challenges in its transition to clean energy. The study concludes that although both companies are committed to sustainability, Shell now leads in terms of effective CSR and financial performance.

Multistep Brent oil price forecasting with a multi-aspect aeta-heuristic optimization and ensemble deep learning model

Accurate crude oil price forecasting is crucial for various economic activities, including energy trading, risk management, and investment planning. Although deep learning models have emerged as powerful tools for crude oil price forecasting, achieving accurate forecasts remains challenging. Deep learning models’ performance is heavily influenced by hyperparameters tuning, and they are expected to perform differently under various circumstances. Furthermore, price volatility is also sensitive to external factors such as world events. To address these limitations, we propose a hybrid approach that integrates metaheuristic optimisation with an ensemble of five widely used neural network architectures for time series forecasting. Unlike existing methods that apply metaheuristics to optimise hyperparameters within the neural network architecture, we exploit the GWO metaheuristic optimiser at four levels: feature selection, data preparation, model training, and forecast blending. The proposed approach has been evaluated for forecasting three-ahead days using real-world Brent crude oil price data, and the obtained results demonstrate that the proposed approach improves the forecasting performance measured using various benchmarks, achieving 0.000127 of MSE.

Green Technological Advances and Resource Rents as Levers for Carbon Reduction in BRICS: Implications for SDGs 7, 8, 9, 12, and 13

ABSTRACTIn recent decades, rapid development in emerging economies has heightened climate challenges, threatening environmental sustainability and quality. In response, green energy, technological innovation, and carbon pricing strategies have emerged as key tools for environmental mitigation and promoting green economic growth. These strategies are integral to the goals of COP 27, the 2030 SDGs, and the pledge to reach carbon neutrality by 2060. However, the BRICS economic bloc faces significant obstacles in balancing socio‐economic growth with environmental sustainability. This study intentions to inspect the impact of natural resource rents, research and development (R&D) expenditures, green energy, green technological innovation, and economic growth on carbon emissions in BRICS economies from 1995 to 2021. Using a cross‐sectional ARDL model, the study explores relationships between these variables, employing advanced panel methods to account for CSD and heterogeneity. The empirical findings reveal that research and development expenditure, green energy, and green technological innovation contribute to CO2 emission reductions by 0.329%, 0.211%, and 0.148%, respectively. In contrast, a 1% increase in economic growth and natural resource rents corresponds to a substantial 0.499% and 0.840% upsurge in CO2 emissions. The Dumitrescu and Hurlin panel causality test also highlights reciprocal causal relationships among the variables. Based on these findings, the study recommends policy actions to achieve SDG targets: enforce stricter CO2 emissions regulations for SDG‐13, increase renewable energy investment for SDG‐07, support green innovation for SDG‐08, enhance R&D for SDG‐09, and promote circular economy practices for SDG‐12.

The Economic Impacts of Renewable Energy Adoption: A Comparative Analysis of Developed and Developing Nations

This article discusses the economic impact of renewable energy adoption through a comparative analysis between developed and developing countries. Using qualitative methods based on literature studies and library research, this study explores how investment in renewable energy affects economic growth, job creation, and economic environmental stability in both types of countries. The findings show that developed countries tend to have stronger infrastructure and greater funding to support the energy transition, so they can see the economic benefits of renewable energy investment more quickly, including in the technology and innovation sectors. On the other hand, although developing countries face capital and infrastructure constraints, the adoption of renewable energy has the potential to increase energy security, reduce dependence on imported energy, and create new economic opportunities, especially in rural areas. This analysis highlights the importance of international policy and investment support to help developing countries overcome challenges in the energy transition. This article is expected to provide insights to policymakers on the importance of an approach tailored to each country's conditions to encourage the adoption of renewable energy that is effective and positively impacts the economy.