Energy Investment Research Articles

Investigating the dynamic effects of service value added on CO2 emissions: Novel insights from a non-parametric approach

Carbon dioxide (CO2) emissions are the primary contributors to climate change. Addressing and mitigating climate change necessitates the effective management and utilization of renewable energy consumption, which poses a substantial challenge for the forthcoming decades. This study explores the dynamic effects of service value added (SVA) and renewable energy on environmental quality, particularly focusing on CO2 emissions. Unlike previous studies, we employ a non-parametric modeling approach to uncover the time-varying influence of service sector growth on CO2 emissions. Specifically, we apply the local linear dummy variable estimation (LLDVE) method to a panel of the 17 highest-emitting nations over the period 1980–2021. Our study uncovers a non-linear relationship between CO2 emissions and SVA. From 1980 to 2003, we observe a negative correlation. However, starting from 2005 to 2020, we witness a shift towards a positive correlation, indicating a rise in energy consumption within the service sector. The results indicate that significant emitter economies have yet to achieve sustainability, with the service sector continuing to contribute to pollution. Addressing this issue necessitates more robust climate change policies and increased investment in clean energy, specifically targeting the service sector, including buildings and transport.

Stacked energyscapes: Conceptualizing fossil fuel and renewable energy entanglements in low-carbon transitions

Energy transitions are often characterized as discrete progressions away from fossil fuels to renewable energy, typically in different geographic spaces, which result in “winning” and “losing” communities. Policies have been enacted to encourage renewable energy investment in “losing” fossil fuel extractive communities. Such conceptualizations do not sufficiently consider how fossil fuel extraction and renewable energy intersect with and shape each other in these spaces. We introduce the term “stacked energyscapes” to better characterize these interactions. Rather than replacing a fossil fuel-based energy system, we argue that renewable energy is “stacked” atop it, entangling their sociotechnical “energyscapes” together in ways that can both accelerate and slow the transition. We develop this conceptualization based on a review of 149 journal articles, policy papers, and news articles of energy transition case studies, primarily focused on the U.S. We identify and analyze five key domains where stacked energyscapes manifest: land, labor, infrastructure, finance, and policy and regulation. Conceptualizing energy transitions as stacked energyscapes can sharpen understandings of transitions in extractive communities so as to better enable just transitions and reduce the environmental footprint of the energy sector.

Do climate risks affect dirty–clean energy stock price dynamic correlations?

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, have affected the time-varying dirty–clean energy equity price nexus. This study fills this gap by innovatively identifying dynamic conditional correlations (DCCs) between dirty and clean energy stock prices. An ARDL/NARDL model is applied to assess whether the climate risks affect such correlations by controlling for business cycles, funding liquidity, USD values, and oil market sentiments. Overall, we detect an undeniable negative impact of climate risks on the positive dirty–clean energy price dynamic correlations. Additionally, the NARDL model results reveal that a rise in federal fund rates exerts higher effects on the dirty–clean energy stock price comovements. Our findings suggest the strengthened potential of hedging clean energy stocks against dirty energy equities in case of escalating climate risks and heightened fossil fuel price volatilities. Furthermore, substantial attention is required to account for monetary policies' asymmetric effects on clean energy investment.

Does the Type of Renewable Energy Matter for Economic Growth? An Empirical Investigation using Panel Data from 212 Countries between 1965 and 2021

This paper analyzes the effects of different sources of renewable energy on economic growth utilizing a panel of 212 countries between 1965-2021. The focus lies on five renewable energy sources: solar, wind, hydraulic, biofuel, and geothermal. Findings reveal that geothermal and hydraulic energies impact positively economic growth, while solar, wind, and biofuel energies negatively impact it. Consequently, the study suggests that policymakers should prioritize the development and investment in hydraulic and geothermal energy, while reconsidering support for solar, wind, and biofuel sources. The efficiency and cost of each energy type may vary based on factors such as location, technology, and available resources.

Current State and Future Potential of Energy Efficiency and Demand Side Management in the South African Context

This paper explores the current state and future potential of Energy Efficiency and Demand Side Management (EEDSM) in South Africa. With a heavy reliance on coal for electricity generation, South Africa faces significant environmental and sustainability challenges. Integrating renewable energy sources like wind, water, and solar (WWS) is crucial for reducing greenhouse gas emissions and ensuring energy security. The study highlights the importance of demand-side management in optimising energy consumption and mitigating peak demand pressures. The South African government has implemented various policies and regulatory frameworks to promote EEDSM, focusing on reducing energy consumption through technological innovations and strategic planning. Models such as the Five-Stage Model for Computer Technology Integration, the E-Capacity Model, and the Systemic Planning Model for ICT Integration provide structured approaches to integrating advanced technologies and practices into energy systems. The research includes a comprehensive analysis of South Africa's current energy mix, predominantly coal and nuclear, and projects a shift towards a diversified portfolio dominated by renewable sources by 2050. This transition is expected to create substantial employment opportunities and enhance energy efficiency. Case studies and success stories from both the public and private sectors underscore the economic and environmental benefits of EEDSM initiatives. South Africa can significantly improve its energy efficiency and sustainability by leveraging innovative energy technologies, such as smart grids and smart metering. The findings emphasise the need for continued investment in renewable energy and demand- side management to achieve a more resilient and efficient energy sector.

Effects of Costly Power on Industrial Market Growth and Significance of Promoting Cost-Effectiveness Using Renewable Energy Sources

Over the next 20 years, a rising portion of the world's energy demand will be accounted for using electricity. A renewed interest in the development of alternative energy sources has emerged in recent years because of rising fossil fuel prices and worries about the environmental effects of greenhouse gas emissions. Renewable energy is currently being compared to nuclear energy because of its low risk and disaster. Investment in renewable energy and energy efficiency is important to reduce the negative economic, social, and environmental impacts of energy production and consumption in Somalia. Currently, renewable energy contributes relatively little to primary energy and even less to the consumption of commercial energy. In this regard, several strategies can be implemented to reduce high-cost electricity, such as increasing the use of renewable energy sources and promoting technological innovation. Reduction of high electricity costs and creation of a sustainable energy source to advance, two main solutions can be implemented: replacing fossil fuels with renewable energy sources as much as possible and improving energy efficiency. In this article, we discuss the use of renewable energy sources and alternative technologies to improve energy efficiency.

The impact of local wind and spatial conditions on geometry blade of wind turbine

AbstractThe research addresses the pressing need to understand wind conditions for optimal wind energy utilization, a crucial aspect of achieving global energy sustainability. While previous studies have focused on assessing wind energy potential and terrain roughness, gaps persist in understanding how wind and spatial conditions affect blade geometry. Therefore, this study aims to investigate the impact of local wind conditions on wind turbine blade geometry, integrating nonuniform wind inflow due to wind shear into the theoretical model. Through the paper, it explores blade design for varying inflow conditions and analyses the relationship between terrain type and blade designs. A novel approach to wind turbine blade design, utilizing a theoretical model that combines the local momentum theorem with insights from propeller vortex theory was adopted. Through the analysis, the authors demonstrate that variations in terrain significantly influence blade geometry, underscoring the necessity for tailored turbine designs based on local conditions. The findings reveal discrepancies in blade geometry across different turbine capacities and terrain types, offering novel insights into wind turbine performance optimization. By tailoring blade geometry to specific locations enhances resource utilization, offering insights for energy policymakers. The research provides validated methods for optimizing turbine geometric parameters, opening avenues for increased local investment in wind energy and promoting distributed energy development. Illustrated with wind plants examples, the paper concludes by outlining future research directions in this field.

Socio-political dynamics in clean energy transition

A rapid and effective transition to low-carbon energy production is essential to limit climate change impacts. While the scientific community has mostly focused on research and development and techno-economic aspects, quantifying the role of public acceptability and policy in shaping emission trajectories has been much more elusive. This study investigates the coupled dynamics of nonlinear socio-political acceptance and anthropogenic CO2 emissions, with implications for climate policies and clean energy investments. Our findings show that a top-down policy approach alone may not be sufficient for effective emission cuts, highlighting the need for a multi-level strategy that combines top-down and bottom-up approaches. Additionally, opinion polarization can trigger detrimental CO2 emission oscillations when governments decide to take heavy-handed policy interventions in highly polarized socio-political systems. Delayed perception of climate change damage or abrupt reactions to extreme weather events may also significantly affect emission reduction efforts, although in the opposite direction. Integrating these socio-political dynamics into climate models can enhance our understanding of the complex interplay between human and natural systems, enabling the development of more effective and resilient mitigation strategies.

Economic and Political Factors in Defense Strategy Formulation: a BRICS Country Perspective

This narrative provides a comprehensive analysis of the economic, political, and diplomatic factors influencing defense strategy formulation within the BRICS (Brazil, Russia, India, China, South Africa) context. Drawing on a wide range of sources, the narrative explores the historical evolution and recent shifts in BRICS defense strategies, highlighting the diverse approaches of member nations. The research adopts a qualitative descriptive approach, systematically gathering secondary data from academic journals, governmental reports, and reputable websites. The analysis focuses on the interplay between economic conditions, political dynamics, and defense strategy formulation in BRICS nations, providing nuanced insights into how these factors shape defense policies. It examines the influence of economic dependency on defense policies, emphasizing the role of economic stability in sustaining robust defense capabilities. Additionally, the narrative delves into the impact of political systems and leadership dynamics on defense strategy formulation, as well as the significance of diplomatic relations and security considerations. The findings underscore the complex interplay between economic, political, and defense factors within the BRICS framework, with implications for regional stability and resilience. The study finds that economic dependency is a pivotal factor in shaping BRICS defense strategies, with economic stability underpinning the capacity for robust defense capabilities. Political systems and leadership dynamics also play a crucial role, with centralized systems facilitating assertiveness and democratic frameworks emphasizing consensus-building. Diplomatic relations and security cooperation are integral to these strategies, highlighting the importance of strategic collaboration in addressing shared security challenges. The expansion of BRICS introduces new dynamics, particularly in energy investment and trade, requiring adaptive strategies to maintain stability and resilience. Finally, the narrative suggests future research directions to further explore these dynamics and enrich our understanding of BRICS defense strategies in the evolving global security landscape.

Achieving zero emission targets: The influence of green bonds on clean energy investment and environmental quality

The effectiveness of green finance in driving clean energy and environmental sustainability in the current era is receiving attention. Therefore, this study proposes an empirical framework highlighting the effects of green bonds (GB) on clean energy investment (CEI), clean energy investment efficiency (CEE) and environmental sustainability of 29 green bond issuing countries between 2014 and 2022. Using system and difference GMM approaches, this study finds that (i) green bond issuance drives clean energy investment. (ii) Green bonds sufficiently enhance the selected countries' environmental quality. These results supplement the promotion of green bonds in increasing the transfer of funds towards renewable energy projects by reducing reliance on fossil fuels. (iii) Using Driscoll & Kraay, Fully Modified-OLS, and changing the dependent variable, this study further supported the idea that green bonds effectively promote the CEE and environmental sustainability of the chosen countries. (iv) Similarly, this study conducted income heterogeneity, showing that green bonds improve high- and middle-income countries' CEI and environmental quality. (v) Finally, the results indicate that resource consumption escalates CO2 emissions by declining the CEI. Technological innovations increase CEI, whereas they do not mitigate CO2 emissions directly, hinting at the requirement for a comprehensive approach. Therefore, inclusive policies on green bond frameworks, robust incentives, and rigorous environmental criteria should be implemented to attract investment in clean energy development and ensure the environmental sustainability of the selected countries.

Beyond the Grid: An In-depth Analysis of Economic, Demographic, and Technological Drivers of Energy Poverty in 11 Developing Countries

This research examines the impact of critical factors, including GDP, population, internet, renewable power, human capital, and global link, on energy poverty in the New-11 nations, using a Panel ARDL technique. Energy poverty rises with GDP and population growth but is significantly reduced by internet access and renewable energy. Human resources and globalization present a mix of insignificant functions. Short-run illustrations depict initial movement in the long run, which abruptly stabilizes as renewable energy costs become apparent. The implications of the findings of energy poverty are the essential and inescapable policy calls for targeted investments in digitalization, sustainable energy, people, and intelligent globalization.

Do dirty and clean energy investments react to infectious disease-induced uncertainty?

Following the outbreak of novel coronavirus, numerous studies have assessed the effect on global financial markets. However, investigations into whether, and to what extent, dirty and clean energy asset classes are sensitive to contagious diseases are rare. This study aims to fill this gap in the literature. We measured the effects of contagious viruses using the recently introduced infectious disease-related uncertainty index (EMVID). Our data include the iShares Global Energy ETF and clean energy stock indices from leading economies such as the United States, the European Union, Japan, and China. Employing the GARCH-MIDAS model, we find that the uncertainty associated with infectious diseases has a significant positive (negative) effect on the realized volatility (RV) of dirty (green) assets. This finding is novel given that it indicates the potential for “green recovery” in the post-pandemic era. Our findings further document that EMVID has significant predictive content for the volatility of these assets and that inserting the EMVID index into the GARCH-MIDAS process produces better volatility predictions than other uncertainty measures, including the crude oil volatility (OVX), geopolitical risk (GPR), and economic policy uncertainty (EPU) indices. Hence, the EMVID provides additional information not contained in the OVX, GPR, or EPU during the pandemic period. Our findings will be useful for energy market participants to make appropriate asset allocation decisions during pandemics.

Accelerating the Transition to sustainable energy: An intelligent decision support system for generation expansion planning with renewables

Sustainable energy planning for power generation with renewables requires a multidimensional approach since it directly impacts several sectors such as the national grid, the environment, and the economy. This paper suggests an intelligent decision based on a combination of the Analytical Hierarchy Process and Artificial Neural Networks to assist policymakers in evaluating future renewable energy investments for power generation. A case study of Bahrain's power system is used to illustrate the usefulness of the proposed planning approach and also to discuss its efficiency. The Analytical Hierarchy Process model outcomes revealed that wind turbines are the most appropriate technology for Bahrain with 32.5 % priority, followed by PV and CSP with 32.2 % and 16.3 %, respectively. Then, the Artificial Neural Networks model was structured based on the generated scenarios from the Analytical Hierarchy Process model, and it reached its best performance after 384 cycles. The integrated approach overcomes some of the Analytical Hierarchy Process's limitations and provides an intelligent tool for advanced assessment of a sustainable power system.

Seasonal energy investment and metabolic patterns in a farmed fish

The present research focuses on the seasonal changes in the energy content and metabolic patterns of red porgy (Pagrus pagrus) sampled in a fish farm in North Evoikos Gulf (Greece). The study was designed in an effort to evaluate the influence of seasonality in several physiological feauteres of high commercial importance that may affect feed intake and growth. We determined glycogen, lipids and proteins levels, and cellular energy allocation (CEA) as a valuable marker of exposure to stress, which integrates available energy (Ea) and energy consumption (Ec). Metabolic patterns and aerobic oxidation potential were based on the determination of glucose transporter (GLU), carnitine transporter (CTP), L-lactate dehydrogenase (L-LDH), citrate synthase (CS), cytochrome C oxidase subunit IV isoform 1 (COX1) and 3-hydroxyacyl CoA dehydrogenase (HOAD) relative gene expression. To integrate metabolic patterns and gene expression, L-LDH, CS, COX and HOAD activities were also determined. For further estimation of biological stores oxidized during seasonal acclimatization, we determined the blood levels of glucose, lipids and lactate. The results indicated seasonal changes in energy content, different patterns in gene expression and reorganization of metabolic patterns during cool acclimatization with increased lipid oxidation. During warm acclimatization, however, energy consumption was mostly based on carbohydrates oxidation. The decrease of Ec and COX1 activity in the warm exposed heart seem to be consistent with the OCLTT hypothesis, suggesting that the heart may be one of the first organs to be limited during seasonal warming. Overall, this study has profiled changes in energetics and metabolic patterns occurring at annual temperatures at which P. pagrus is currently farmed, suggesting that this species is living at the upper edge of their thermal window, at least during summer.

From turbulence to resilience: A bibliometric insight into the complex interactions between energy price volatility and green finance

Given the growing concerns over climate change and energy price dynamics, this study provides a comprehensive bibliometric analysis of energy price volatility (turbulence) and the resilience of green financial markets. Using data from Scopus from 1994 to October 2023, we employ performance analysis, science mapping, and thematic analysis through bibliometric study. Efficient Market Hypothesis (EMH), Game Theory, Dynamic Capabilities, and Resource-based view provide solid theoretical foundations for understanding these dynamics. Our findings reveal four critical themes: sustainable development in the green energy sector, technological innovations and renewable energy integration, economic foundations and investment dynamics in green financial markets, and environmental impact and policy influence. The analysis highlights the pivotal role of green finance in mitigating energy market fluctuations and promoting sustainable development. Policymakers and practitioners should leverage innovative green financing strategies to enhance economic resilience and drive long-term sustainable development. We propose thought-provoking questions to guide future research on these themes.

The Time-Varying Relationship Between Economic Policy Uncertainty and Returns of New Energy Stocks

With the increasing global emphasis on environmental protection, green development has become an important part of high-quality development in various countries and has stirred up enthusiasm for new energy consumption and investment. This paper uses a TVP-VAR model to analyze the dynamic effects between Chinese economic policy uncertainty, international crude oil prices, Guangdong carbon prices, and the CSI New Energy Index from July 2015 to November 2023. It turns out that they are closely linked in the short term, with obvious time-varying features in direction and magnitude. The effects of economic policy uncertainty are more persistent when extreme events occur. Finally, based on the research results, some constructive suggestions are proposed, such as establishing a risk early warning mechanism among them, improving the market system, enhancing regulatory capabilities, and promoting the development of green finance.

Clean energy market connectedness and investment strategies: New evidence from DCC-GARCH R[formula omitted] decomposed connectedness measures

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 R2 decomposed connectedness approach. This framework allows us to efficiently decompose dynamic conditional R2 goodness-of-fit measures into its decomposed components. Furthermore, we introduce the concept of minimum R2 decomposed connectedness portfolios and multivariate hedging portfolios. We find that the dynamic total connectedness is heterogeneous over time and economic-event dependent. In addition, the empirical results highlight that the NASDAQ OMX Green Economy Index is a net transmitter of shocks while all others are net receivers of shocks. Finally, we find that our proposed portfolio technique outperforms the NASDAQ OMX Green Economy Index as well as all alternative multivariate portfolio techniques regarding the hedging effectiveness score and the Sharpe ratio.

The importance of cybersecurity in protecting renewable energy investment: A strategic analysis of threats and solutions

The importance of cybersecurity in protecting renewable energy investment: A strategic analysis of threats and solutions

Impact of Contracts for Differences for non-carbon electricity generation on efficiency of electricity market

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 production. Using a partial equilibrium model of an international electricity market including thirteen European countries, we find a trade-off between stimulating renewable electricity producers to respond to negative prices, and ensuring producer certainty. We also show potential market distortions for CfDs with longer-term reference prices, particularly when strike prices deviate from expectations. Additionally, our study underscores the interactions among various players in the electricity market, in particular storage operators and international traders, and how these interactions can mitigate potential distortions from CfDs. Therefore, policymakers should carefully consider the design elements of CfDs, and weigh the promotion of renewable energy production against the efficiency of markets. Moreover, a proper reference price should be selected, to avoid further increasing electricity prices in periods with high electricity prices.

Unraveling the Nexus Between Financial Openness and Environmental Quality: Green Finance as the Catalyst in CEE Countries

The use of fossil fuels, which is still seen as the cheapest energy source today, has increased carbon emissions and contributed to the formation of greenhouse gases, and this gas has reached levels that threaten world health. While studies on this problem often question the relationship between production volume, energy use, and carbon emissions, few studies question the effects of the financial assets, which are the providers of investments made for production purposes, on environmental degradation. This study used the fixed effect model and system GMM technique to analyse the moderating effect of green finance in connection to financial openness and environmental quality from 2015 to 2020 in the CEE countries. Findings show, among other things that (1) CO2 in CEE countries is still growing; (2) financial openness is a positive and significant indicator of CO2 emission; and (3) that green finance usage reduces the positive impact of financial openness on CO2 emissions. The study suggests that financial openness, renewable energy (RE) investment, and green technology innovation (GTI)– consistently drive CO2 emissions in CEE countries. The study suggests that policies promoting green finance, particularly RE investment and GTI, can help mitigate environmental degradation and reduce CO2 emissions.