Energy Investment Research Articles

A puzzle on environmental quality and energy security

i) This study examines the determinants of environmental quality. It is not possible to fully analyze the complex network that emerges from the set of interactions of these determinants, both with each other and with environmental security. Indeed, a number of variables and relationships hidden in the background of the puzzle such as ‘game theoretical interactions between economies on energy security’, characterize this network. However, this study, which includes energy security and environmental quality simultaneously, may open the door to revealing the key patterns of the current network.ii) This study, which investigates the network between environmental problems and energy security, provides empirical evidence that these two variables may well evolve by positively affecting each other under some conditions.iii) Using the current and sophisticated econometric methods such as CDw + based on Juodis and Reese (2022) test and CS-ARDL Model, over a panel of top 20 energy-using countries in the period 1980–2018, the empirical analysis of the article shows that an increase in energy security risk positively affects environmental quality in aggregate by motivating increased energy efficiency, triggering environmental awareness and regulations, and stimulating research and development activities for clean energy etc. Technologies. Therefore, this study concludes that potential policies and reforms, including reducing fossil fuel consumption, increasing energy efficiency in distribution and consumption, encouraging investments in clean energy are of key importance in making energy security sustainable in the long term by increasing environmental quality.

Socioeconomic Factors Driving the Transition to a Low-Carbon Energy System

Citizen participation via different investment schemes may be a promising solution to the financing barriers inhibiting energy transition. In this regard, citizens may be approached as potential investors in renewables, but, to mobilize their capital, strategies need to be developed. Much like other services or products seeking to improve their market position, renewable energy investments by citizens also require dedicated efforts to acquire a strong market position. Using a large sample of Greek citizens, this study investigated whether it is possible to identify distinct and addressable citizen clusters which can enable energy developers and marketers to effectively address the preferences and needs of potential investor segments. The performance of k-means cluster analysis identified four clusters: Indifferent Investors were neither driven by economic or social factors, Enthusiastic Investors were motivated both by economic and social factors, Pro-environmental Investors were driven by the environmental benefits, and Social Investors were motivated by the social aspects of the investment. Moreover, each cluster demonstrated different levels of willingness-to-invest in renewable energy and were knowledge about renewable energy investments. It was concluded that citizens should not be approached as a homogeneous target group by marketing experts and policymakers, while novel strategies should be followed.

Exploring the complex interplay of green finance, business cycles, and energy development

Green finance has emerged as a contemporary mechanism to support investments in renewable energy, energy efficiency, and sustainable infrastructure projects. This study aims to provide empirical insights into the asymmetric influence of green finance and business cycle fluctuations on energy development in 60 developing countries from 2000 to 2021. Four aspects of energy development, including energy access, stability, efficiency, and production gap, are examined using panel quantile regression with additive fixed effects. The research findings demonstrate that green finance plays a significant role in fostering energy development, with varying effects across different quantiles of the distribution. Specifically, the results indicate that green finance supports energy access and stability, particularly during economic recession, low-income levels, and limited technological advancement. However, the impact of green finance on energy efficiency exhibits notable heterogeneity, contingent upon technological and periods of economic expansion. Achieving tangible improvements in energy efficiency necessitates a certain level of technological and economic development. Moreover, green finance shows a capacity to maintain an optimal level of energy production, particularly evident during economic expansion and for highly technologically developed countries. The impact of business cycle fluctuations varies across different quantile distributions of energy development indicators, predominantly exerting an inhibitory effect of economic recession. In light of these results, it is recommended that policies in developing countries be revised to enhance energy access, optimize energy production levels, and promote the cost-effectiveness of renewable energy in conjunction with green finance initiatives.

Economic impact of digital twins on renewable energy investments

Economic impact of digital twins on renewable energy investments

Expert and operator perspectives on barriers to energy efficiency in data centers

It was last estimated in 2016 that data centers (DCs) comprise approximately 2% of total US electricity consumption. However, this estimate is currently being updated to account for the massive increase in computing needs due to streaming, cryptocurrency, and artificial intelligence (AI). To prevent energy consumption that tracks with increasing computing needs, it is imperative we identify energy efficiency strategies and investments beyond the low-hanging fruit solutions. In a two-phased research approach, we ask: What non-technical barriers still impede energy efficiency (EE) practices and investments in the data center sector, and what can be done to overcome these barriers? In particular, we are focused on social and organizational barriers to EE. In Phase I, we performed a literature review and found that technical solutions are abundant in the literature, but fail to address the top-down cultural shifts that need to take place in order to adapt new energy efficiency strategies. In Phase II, reported here, we interviewed 16 data center operators/experts to ground-truth our literature findings. Our interview protocols focus on three aspects of DC decision-making: procurement practices, metrics and monitoring, and perceived barriers to energy efficiency. We find that vendors are the key drivers of procurement decisions, advanced efficiency metrics are facility-specific, and there is convergence in the design of advanced facilities due to the heat density of parallelized infrastructure. Our ultimate goals for our research are to design DC decarbonization policies that target organizational structure, empower individual staff, and foster a supportive external market.

Clean innovation ecosystems: Lifting distressed communities in Appalachia with clean energy

The U.S. government has invested in distressed communities in the 21st century but with minimal effect. Regarding income, poverty, joblessness, and vacancy rates, the average distressed zip code in 2018 showed no improvement compared to its standing relative to the average prosperous zip code in 2000. We have discovered the formation of unique business clusters funded by public-private partnerships have the potential to make a difference in lifting distressed communities. Our research of literature and artifacts (photographs, videos, documents, digital media - websites or social media posts) suggests the discovery of a Clean Innovation Ecosystem (CIE). CIE refers to the network of social entrepreneurs, organizations, institutions, and individuals that work together to promote sustainable technologies and practices. As of the 4th quarter of 2023, manufacturing annual run rate construction spending has skyrocketed to over $200 billion. There are another $600 billion of Voltage Valley projects announced that have not yet been built. Over the past two decades, private investment has been between $20 billion and $100 billion annually in U.S. manufacturing infrastructure. Governments are making unprecedented investments in clean energy - which include approximately $400 billion in funding from the Inflation Reduction Act (IRA), $8 billion to establish 6–10 regional Hydrogen Hubs in the U.S., investments in carbon capture, renewable energy technologies, and other investments in clean energy sectors and technologies. All these investments come with the condition that the investment lifts distressed communities. This article explains why investing in Appalachia and geographic regions with similar characteristics will maximize the social benefit of public investment in a Clean Innovation Ecosystem. Our case study covers the Greater Central Appalachian Voltage Valley (GCAVV) – the states of Kentucky, West Virginia, Ohio, Upstate New York, and Michigan, as well as the Central Appalachian region as defined by 56 of the 85 distressed communities of Appalachia.

Optimal planning of hybrid power systems under economic variables and different climatic regions: A case study of Türkiye

Renewable energy-based hybrid power systems (HPS), proposed based on demand in the transition to clean energy-indexed societies, are high-potential investments. However, cost-based optimal sizing and feasibility analyses are complicated due to unforeseen variables and do not guarantee a reliable and robust optimization framework. This study optimizes minimum-cost HPS planning for diverse loads across varied climates and economic conditions, providing holistic comparisons of technical, financial, and environmental viability. According to the analysis, fluctuating economic structure emphasizes that unsubsidized hybrid power system installations are inefficient, the severe imbalance between inflation and interest rates limits the benefits of hybrid power systems and creates an uncertain investment environment for stakeholders. The gradual increase in interest rates to limit inflation has created a more viable renewable energy investment environment, while payback periods are reduced to 7.21 years. Even under identical economic conditions, the renewable fraction of energy in regions with high solar potential can be up to 25 % higher than in regions with less potential. Moreover, payback periods can vary up to 6 years, depending on the variability in solar generation and load profiles. Considering the significant impact of economic uncertainty on HPS investments, optimization plans that reduce investment risks will be helpful to stakeholders.

Examining public private partnership investment in energy towards achieving sustainable development goal 7 for ASEAN region

The gradual progress in aligning financial flows with the adoption of clean technologies reveals a persistent funding gap, signaling a global misallocation of capital. Addressing this challenge necessitates political leadership and robust policies to counteract the insecurities impeding the redirection of financial flows. This study investigates into the impact of energy-related public–private partnership investments (PPPIE) and macro-environmental variables on the attainment of Sustainable Development Goal 7 (SDG7) across Association of Southeast Asian Nations (ASEAN) member countries from 1999 to 2021. Employing the Dynamac command technique, we conduct autoregressive distribution lag analysis and the Bounds Cointegration Test to evaluate ASEAN’s efforts in achieving SDG7. Results indicate that a ten-year exogenous shock to the GDP growth rate initially causes a temporary decline in both GDP and PPPIE, albeit not statistically significant. However, in the long run, the shock becomes statistically significant, correlating with a negative decline in the GDP growth rate. This underscores the negative impact of external factors like the COVID-19 pandemic on the economic growth of ASEAN member countries. Specifically, a percentage increase in PPPIE leads to an 8.3% reduction in the GDP growth rate, revealing a detrimental and unsustainable impact on the economy. This signifies that energy investments in the ASEAN region, are predominantly unsustainable and adversely impact economic growth. Moreover, these energy investments contribute to a significant 52.6% increase in greenhouse gas emissions, indicating a substantial setback in the region’s progress towards meeting SDG7’s clean energy objectives by 2030. This suggests the present state of PPPIE does not align with sustainable clean energy goals of the region. Therefore, recommendations should include diversifying energy sources and investment strategies to enhance sustainable clean energy. Also, policymakers and researchers should reassess the terms and conditions of PPPIE, refining frameworks for private sector involvement to align with long-term economic sustainability goals.

An electricity-driven mobility circular economy with lifecycle carbon footprints for climate-adaptive carbon neutrality transformation

Under the carbon neutrality targets and sustainable development goals, emergingly increasing needs for batteries are in buildings and electric vehicles. However, embodied carbon emissions impose dialectical viewpoints on whether the electrochemical battery is environmentally friendly or not. In this research, a community with energy paradigm shifting towards decentralization, renewable and sustainability is studied, with multi-directional Vehicle-to-Everything (V2X) and lifecycle battery circular economy. Approaches are proposed to quantify the lifecycle carbon intensity of batteries. Afterwards, pathways for zero-carbon transformation are proposed to guide the economic feasibility of energy, social and governance investment behaviors. Results show that lifecycle zero-carbon battery can be achieved under energy paradigm shifting to positive, V2X interaction, battery cascade utilization and battery circular economy in various climate regions. This study proposes an approach for lifecycle battery carbon intensity quantification for sustainable pathways transition on zero-carbon batteries and carbon-neutral communities.

Green Silk Road and Belt Economic Initiative and Local Sustainable Development: Through the Lens of China’s Clean Energy Investment in Central Asia

Green Silk Road and Belt Economic Initiative and Local Sustainable Development: Through the Lens of China’s Clean Energy Investment in Central Asia

EU legislators approve the electricity market reform

The European electricity market is on the brink of transformative regulatory changes designed to reshape its landscape fundamentally. These changes encompass measures aimed at ensuring market stability, enhancing efficiency, promoting investment in clean energy, and safeguarding stakeholders from energy crises. Central to these reforms is the promotion of Power Purchase Agreements (PPAs) and Contracts for Difference (CFDs) to stabilize markets. Considering that existing barriers are impeding PPAs widespread adoption, the new design of the electricity market prompts regulatory adjustments to streamline access while maintaining fair competition. Concurrently, the design of CFDs must navigate competition distortions and ensure long-term viability, posing challenges for the European Commission in aligning them with State aid rules. Efforts to boost market efficiency include the reduction of intraday gate closure times, effective January 2026, and the establishment of minimum bid sizes to optimize resource allocation and pricing mechanisms. Moreover, the regulatory framework prioritizes incentivizing investments in clean energy, underscoring Europe’s commitment to sustainability. Member states will wield the power to implement non-fossil flexibility support schemes, offering payments for available non-fossil flexibility capacity, thereby fostering the transition towards cleaner energy sources. Lastly, protective measures are being instituted to shield consumers and undertakings from energy crises, emphasizing the need for resilience and stability in the sector. As these reforms unfold, policymakers must delicately balance fostering innovation, ensuring competitiveness, and safeguarding stakeholders’ interests. This article delves into the complexities of these reforms, offering insights into their implications and challenges.

Gold Production and the Global Energy Transition—A Perspective

Gold is neither a critical mineral nor a metal that is central to the global energy transition in terms of demand from new energy production technologies. Yet, gold is unique among mined commodities for its role in financial markets and for its global production footprint including in numerous developing economies. Since the production of gold incurs CO2 emissions and other environmental risks including water pollution and land degradation, gold producers seek to adopt clean production solutions through electrification and renewable energy adoption. Further, gold’s unique role as a store of value creates new potential green business models in gold, such as the digitalisation of in-ground gold inventories, which can further reduce negative environmental externalities from gold mining. A net-zero emissions, future global gold industry, is possible. Major gold producers are targeting net-zero Scope 1 and 2 emissions by 2050, coupled with a lower overall environmental footprint to meet heightened societal expectations for cleaner production. An analysis of emissions data from Australian gold mines shows systematic differences between mining operations. Further clean energy investment in gold production is required to reduce emission levels towards the target of net zero.

Carbon pricing policies and renewable energy development: Analysis based on cross-country panel data

While studies have theoretically discussed the impact of carbon pricing on renewable energy, the practical implementation and effectiveness of these policies remain uncertain. This study empirically examines the role of carbon emissions trading and carbon tax in global renewable energy development using panel data from 196 countries and regions and employing the staggered difference-in-differences (DID) model and Bacon decomposition method. The results suggest that: (1) From the perspective of policy shocks, carbon trading has increased non-hydro renewable electricity generation by 73.32%, while carbon tax has increased it by 31.79%. This indicates that the overall impact of carbon trading on renewable energy is greater than that of carbon tax. However, the elasticity coefficients of renewable energy to carbon trading prices and carbon tax rates are 0.1801 and 0.1845, respectively, suggesting a slightly greater marginal effect of carbon tax on renewable energy compared to carbon trading. (2) Both carbon tax and carbon trading have mitigated the growth of fossil electricity and encouraged public investment in renewable energy, thereby fostering its development. (3) The influence of carbon pricing on renewable energy varies by income level; notably, the implementation of these policies in high-income countries has diminished their promotional effect on renewable energy. (4) The contribution of technological innovation to renewable energy development is smaller than that of policies including carbon trading and carbon tax, indicating that renewable energy development during the sample period was predominantly driven by policy measures. The findings indicate that the application of carbon pricing policies should be further promoted to accelerate the energy mix transition.

Towards Sustainable Energy Communities: Integrating Time-of-Use Pricing and Techno-Economic Analysis for Optimal Design—A Case Study of Valongo, Portugal

This paper presents a comprehensive analysis of optimal energy community design, leveraging time-of-use pricing mechanisms and techno-economic parameters. Focusing on a case study of Valongo, Portugal, this study explores the intricate interplay between energy infrastructure planning, economic considerations, and pricing dynamics. Through a systematic approach, various factors, such as renewable energy integration, demand–response strategies, and investment costs, are evaluated to formulate an efficient and sustainable energy community model. Time-of-use pricing schemes are incorporated to reflect the dynamic nature of energy markets and consumer behavior. By integrating techno-economic analyses, this study aims to optimize energy resource allocation while ensuring cost-effectiveness and environmental sustainability. The influence of optimized sizes of photovoltaics (PV), battery storage, and electrical vehicles (EVs) on self-sufficiency rates, self-consumption rates and CO2 savings is analyzed. The findings offer valuable insights into the design and implementation of energy communities in urban settings, highlighting the importance of adaptive strategies in the transition towards a resilient and low-carbon energy future. The novelty of this paper lies in its comprehensive approach to energy community design, which integrates time-of-use pricing mechanisms with techno-economic parameters. By focusing on the specific case of Valongo, Portugal, it addresses the unique challenges and opportunities present in urban settings. Additionally, the analysis considers the interaction between renewable energy production, demand profiles and investment costs, providing valuable insights for optimizing resource allocation and achieving both cost-effectiveness and environmental sustainability.

Assessing global carbon sequestration and bioenergy potential from microalgae cultivation on marginal lands leveraging machine learning

This comprehensive study unveils the vast global potential of microalgae as a sustainable bioenergy source, focusing on the utilization of marginal lands and employing advanced machine learning techniques to predict biomass productivity. By identifying approximately 7.37 million square kilometers of marginal lands suitable for microalgae cultivation, this research uncovers the extensive potential of these underutilized areas, particularly within equatorial and low-latitude regions, for microalgae bioenergy development. This approach mitigates the competition for food resources and conserves freshwater supplies. Utilizing cutting-edge machine learning algorithms based on robust datasets from global microalgae cultivation experiments spanning 1994 to 2017, this study integrates essential environmental variables to map out a detailed projection of potential yields across a variety of landscapes. The analysis further delineates the bioenergy and carbon sequestration potential across two effective cultivation methods: Photobioreactors (PBRs), and Open Ponds, with PBRs showcasing exceptional productivity, with a global average daily biomass productivity of 142.81mgL−1d−1, followed by Open Ponds at 122.57mgL−1d−1. Projections based on optimal PBR conditions suggest an annual yield of 99.54 gigatons of microalgae biomass. This yield can be transformed into 64.70 gigatons of biodiesel, equivalent to 58.68 gigatons of traditional diesel, while sequestering 182.16 gigatons of CO2, equating to approximately 4.5 times the global CO2 emissions projected for 2023. Notably, Australia leads in microalgae biomass production, with an annual output of 16.19 gigatons, followed by significant contributions from Kazakhstan, Sudan, Brazil, the United States, and China, showcasing the diverse global potential for microalgae bioenergy across varying ecological and geographical landscapes. Through this rigorous investigation, the study emphasizes the strategic importance of microalgae cultivation in achieving sustainable energy solutions and mitigating climate change, while also acknowledging the scalability challenges and the necessity for significant economic and energy investments.

Conditions for the Development of Wind Energy for Individual Consumers: A Case Study in Poland

This article presents the economic viability of using 10 m wind turbines in households with financial support from the government. The aim of this study was to indicate whether and how state subsidies affect the efficiency and estimated payback periods of wind energy investments for individual households. The research conducted thus far has focused on the analysis of effectiveness, feasibility, and economic profitability, but it has not taken into account government support for the investment readiness of households, which constitutes a research gap in the literature and economic practice. In addition, this study analyzed a new program that is scheduled to come into force this year. The analysis used the Homer Pro software (ver. x64) module, and simulations were performed for three locations in Poland. Due to differences in the location of wind zones, as well as the location of two locations on the Baltic Sea, an additional factor characterizing the studied voivodeships was introduced. Government support may therefore constitute a mechanism for correcting the geographical location and local wind potential. It has been shown that financial support significantly accelerates the payback period, even in locations with weaker wind potential. Complementary and substitutive possibilities for renewable energy sources, such as sun and wind, were indicated. The conclusions from this research can be used by decision makers and individual households to take advantage of government support to shorten the return on investment in wind energy and the validity of this support.

Retraction Note: Assessing the role of energy finance, green policies, and investment towards green economic recovery.

Retraction Note: Assessing the role of energy finance, green policies, and investment towards green economic recovery.

Retraction Note: Does green finance mitigate the effects of climate variability: role of renewable energy investment and infrastructure.

Retraction Note: Does green finance mitigate the effects of climate variability: role of renewable energy investment and infrastructure.

From oil surges to renewable shifts: Unveiling the dynamic impact of supply and demand shocks in global crude oil market on U.S. clean energy trends

Transitioning to renewable energies has become undeniably important in recent decades, especially for the United States. Oil price shocks are prominent determinants of renewable energy. Hence, this study examines the impacts of oil supply, aggregate demand, and oil-specific demand shocks on renewable energy consumption from 1973:01 to 2021:05 using Structural VAR and Time-Varying Parameter VAR models. Based on the results, oil supply shocks generally have a negligible effect on renewable energy, except those that originate from sharp changes in Saudi Arabian oil production and the U.S. recession-induced oil supply deficit. Aggregate demand shocks, such as those caused by the Persian Gulf War and the Asian financial crisis, negatively affect renewable energy by reducing investments and making oil more affordable. Conversely, oil-specific demand shocks, such as the 1979 Iranian Revolution and the 2008 financial crisis, initially reduce renewable energy attractiveness but ultimately lead to increased renewable energy consumption due to soaring oil prices. This study’s unique approach of separately examining global oil market shocks provides new insights, complementing and extending previous research on the relationship between oil prices and renewable energy consumption. Eventually, policy implications for strengthening incentive policies and adding punitive policies to seeking investment in renewable energy are proposed.

Smart Initiatives to Drive Solar Energy Investments under Environmental Uncertainty: Exploring Linear and Quadratic Relationships

Smart Initiatives to Drive Solar Energy Investments under Environmental Uncertainty: Exploring Linear and Quadratic Relationships