European Market Research Articles

Leadership shift in the global soybean market: Dynamic connectedness approach (TVP-VAR)

The price transmission in international soybean market has been extensively examined. However, recent econometric advancements have enabled the application of dynamic connectedness methodology as outlined by Antonakakis and Gabauer (2017) [1], which is based on a Time-varying Parameter Vector Autoregressive (TVP-VAR) model. This approach captures the time-varying connectedness of time series, considering potential risk shock emitters and receivers. The connectedness index (Diebold and Yilmaz, Jan. 2012) [2] was developed using Generalized Forecast Error Variance Decomposition (GFEVD) and the Generalized Impulse Response Function (GIRF) (Koop et al., Sep. 1996; Pesaran and Shin, Jan. 1998) [3,4]. This study aims to understand the dynamic connectedness and price leadership. The research examined markets including the US Soybean futures market (Chicago Board of Trade), Rotterdam Port spot market representing the European soybean market, Paranaguá port representing Brazil, Argentina represented by Rosario Futures and Spot, and the Chinese domestic spot market and the Dalian futures on behalf of China. The research spanned approximately ten years, from September 2009 to May 2019. The findings suggest that the soybean market has reached a high level of maturity, able to withstand exogenous shocks for at least the past seven years. The net pairwise directional connectedness revealed dynamic and bidirectional causality. The dynamic connectedness index showed a highly connected and developed market in the West (Chicago Futures, Rotterdam, Paranaguá, and Rosario Futures and Spot). However, the connectedness between Western and Eastern markets was relatively low, indicating some level of market isolation. Furthermore, the pairwise connectedness index between Eastern market (China spot and Dalian Futures) was also considerable low. Lastly, Paranaguá and Rosario overtook Rotterdam as price-leading markets and were identified as the primary net transmitters of shocks, indirectly implying causality. Chicago, Rosario, and Paranaguá formed a triumvirate leading international prices, while Rotterdam adopted a secondary leading position, deviating from its historical role as the price leader.

Transitioning to a renewable hydrogen system: Optimal infrastructure for self-sufficient hydrogen supply in Austria by 2030

In this study, we employ an optimization model to optimally design a self-sufficient, independent of any imports and exports, hydrogen infrastructure for Austria by 2030. Our approach integrates key hydrogen technologies within a detailed spatial investment and operation model – coupled with a European scale electricity market model. We focus on optimizing diverse infrastructure components including trailers, pipelines, electrolyzers, and storages to meet Austria's projected hydrogen demand. To accurately estimate this demand in hourly resolution, we combine existing hydrogen strategies and projections to account for developments in various industrial sectors, consider demand driven by the transport sector, and integrate hydrogen demand arising from its use in gas-powered plants. Accounting for the inherent uncertainty linked to such projections, we run the analysis for two complementary scenarios. Our approach addresses the challenges of integrating large quantities of renewable hydrogen into a future energy system by recognizing the critical role of domestic production in the early market stages. The main contribution of this work is to address the gap in optimizing hydrogen infrastructure for effective integration of domestic renewable hydrogen production in Austria by 2030, considering sector coupling potentials, optimal electrolyzer placement, and the design of local hydrogen networks.

ANALYSIS OF MODERN TRENDS IN LABOUR MARKET TRANSFORMATION IN UKRAINE

The article examines the main aspects of transforming the labor market in Ukraine in the context of the destructive impact of the war and the associated economic instability. The primary factors affecting the labor market, such as migration processes, changes in the structure of employment, digitization of the economy, and the introduction of the latest technologies, are considered. The consequences of military operations on the transformation of the labor market are analyzed. Current trends in the demand for new professions, demographic changes, and the impact of state regulatory policy on employment support are explored. The prospects for developing the labor market in the context of Ukraine's European integration and the potential for increasing the competitiveness of Ukrainian workers in the European labor market are determined. The necessity of enhancing the adaptability of the workforce to modern challenges and optimizing state employment programs to ensure sustainable economic development of the country in the future has been demonstrated.

Notifications Related to Fraud and Adulteration in the Rapid Alert System for Food and Feed (RASFF) in 2000–2021

Fraudulent and adulterated food is produced mainly to reduce prices and attract consumers’ attention whilst threatening their economic interests, health, and safety. As such, this type of activity should be eliminated. This study’s aim was to identify the most common hazards related to food fraud and adulteration, reported in the Rapid Alert System for Food and Feed (RASFF) between 2000 and 2021, taking into account the product category (including individual products), country of origin, and notification type. We used Microsoft Excel (filtering, vertical-searching, transposition, and pivot table functions) and Statistica 13.3 (two-way joining cluster analysis) to analyse similarities between the hazards identified throughout the research period. Notifications relating to food fraud and adulteration accounted for 18.7% of all RASFF notifications, fluctuating between 1000 and 1200 per year in recent years. These mainly included hazards related to composition and novel foods in dietetic foods, food supplements and fortified foods, sulphites in fruits and vegetables, colours in cereals and bakery products, or Sudan in herbs and spices. Dietetic foods, dietary supplements, and fortified foods were mainly reported as alerts and information notifications, meaning that they were already available on the common European internal market. The other products originated mainly from outside the European Union (Asia—Turkey, Uzbekistan, India and Africa—Ghana, Nigeria) and were submitted on the basis of border rejections. Therefore, it is necessary to continue closely monitoring imported products at the EU border to ensure food safety, avoiding fraud and adulteration and protecting consumers’ financial interests.

Are Mouthwashes Really Effective against Candida spp.?

Oral candidiasis is an opportunistic infection caused by fungi of the genus Candida. Nystatin, fluconazole, and miconazole are the most widely used antifungal drugs in dentistry, but in recent years, they have been shown to be less effective due to the increase in the resistance to antifungal drugs. The growing challenge of antifungal resistance emphasizes the importance of exploring not only alternative strategies in the fight against Candida spp. infections but also supportive treatment for pharmacological treatment for oral candidiasis. This review aims to evaluate and compare the in vitro reports on antifungal efficacy against Candida spp. exhibited by mouthwashes distributed on the European market. The research question was elaborated through the PEO framework recommended by PRISMA 2020. A bibliographic search strategy was developed for the scientific online databases Pubmed and ScienceDirect. According to the eligibility criteria, 21 papers were included in this study over a 27-year period. Mouthwashes containing chlorhexidine digluconate, cetylpyridinium chloride, hexetidine, and fluorine compounds among others, and natural antimicrobials, such as menthol, thymol, eucalyptol, and Glycyrrhiza glabra extracts, have demonstrated antifungal effectiveness. Nonetheless, the methodological variance introduces ambiguity concerning the comparative efficacy of distinct molecules or mouthwash formulations and complicates the evaluation and the comparison of results between studies. Some mouthwashes commercially available in Europe have the potential to be used in anti-Candida therapy and prevention since they have shown antifungal effect.

Greenwashing in green finance and measures to prevent it

Aim. To study the phenomenon of greenwashing in the spheres of green bonds issuance and banks’ activities.Objectives. To show the degree of study of the problem in foreign and Russian scientific literature; to analyze the methods of combating greenwashing; to estimate the probability of greenwashing in the financial sphere in Russia.Methods. The author used the methods of bibliographic analysis, studied the legislation and documentation of banking organizations in the context of greenwashing prevention.Results. The author traces the growth of cases of greenwashing in the financial sphere, shows the main forms of its manifestation emphasized in modern scientific literature. As a result of the analysis of the European Union (EU) legislation on counteraction to financial greenwashing the ineffectiveness of the EU measures on prevention of unfair behavior of issuers of “green” bonds and banking institutions is proved. The analysis of the Russian practice of green finance shows the low demand for the services of green bond verifiers and the low degree of state control over this sphere, which may affect the spread of financial greenwashing in Russia. Based on the results of the analysis of the sphere of counteraction to greenwashing in the sphere of green finance in Russia, the main directions of improvement of the domestic policy of counteraction to greenwashing are proposed.Conclusions. Greenwashing is an urgent problem for the development of green finance. The measures taken by the EU to regulate the green bond market do not lead to a reduction in greenwashing and even provoke its development. Measures on state control and tougher penalties for greenwashing are more effective than the emphasis on information disclosure. This seems significant not only for the European market, but also for the Russian market, which will have to face this problem. It is necessary to develop measures to detect and overcome unfair behavior of participants of Russian financial markets, including the development of state control mechanisms, a unified methodology for assessing green bonds and issuers’ reporting, as well as the responsibility of issuers and verifiers when greenwashing is detected. Equally important are incentives for banks to finance green projects and control of the banking system in the framework of greenwashing prevention.

The demand for sparkling wine: insights on a diversified European market

PurposeThe article aims to study the demand for sparkling wines in Europe. The main objective is to estimate the classic demand parameters aggregately for the entire European area (European Union and the United Kingdom) and separately for groups of countries characterized by wine markets with similar characteristics.Design/methodology/approachUsing 15-years market data for different wine categories from the Euromonitor Passport database, the estimation of price and income elasticities is performed through a Quadratic Almost Ideal Demand System. In line with the objectives, the model is applied first to the whole European area and then separately to the considered groups of countries (subareas). To identify homogeneous subareas, a cluster analysis was performed on basic characteristics of the wine market.FindingsWhen considering the European market as a whole, sparkling wines should be considered a luxury category with a high own-price elasticity. However, the structure of their demand is rather different in different sub-areas. The observed heterogeneity suggests that differentiated policy and marketing considerations should be made. In addition, it widens the possibilities for producers, who can choose the submarkets that respond best to their needs to export their sparkling wines. This seems particularly important in markets, like the sparkling wine ones, that are experiencing a continuous expansion over the last decades.Originality/valueDespite using a methodology well-established to study wine and alcohol demand, the study fills a considerable gap in the literature. Although the demand for sparkling wine is growing worldwide, so far only a couple of studies have engaged in the analysis of its structure. In Europe, the largest market for sparkling wine, this kind of studies is completely lacking.

The impact of global uncertainties on the spillover among the European carbon market, the Chinese oil futures market, and the international oil futures market

This paper employs the TVP-VAR-DY model to investigate the spillover among the European carbon market (EUA), the Chinese oil futures market (INE), and the Brent oil futures market (Brent) and explores whether their spillovers affect their volatility. Furthermore, we explore the impact of global uncertainties about the economy, finance, and geopolitics on their spillovers. The static analysis shows INE as a spillover receiver and EUA and Brent as transmitters. Dynamic analysis reveals spillover peaks during the COVID-19 pandemic. Furthermore, volatilities are positively influenced by spillovers among them. Finally, economic and financial uncertainties increase spillovers, while geopolitical uncertainties decrease them.

Geopolitical risks and business fluctuations in Europe: A sectorial analysis

Should Europe Really Worry about Geopolitical Risks? This study investigates the impact of geopolitical tensions and risks on the economies of the Euro area. In particular, we assess the reaction of key sectors (financial sector: stock market, exchange rate, inflation; energy sector: oil and gas; real sector: economic growth rate) with regard to geopolitical shocks over the period September 2003–March 2024. We measure the reaction of European economies to global geopolitical risks, as well as risks related to geopolitical events and threats. To this end, we adopted the ARDL model and bound tests to estimate the effects of geopolitical risks in the short and long terms. Our findings present two interesting results. First, geopolitical risks can reduce economic growth and provoke depreciation of the euro. Second, geopolitical tensions can increase inflation and put pressure on Brent oil and gas prices in Europe. The European stock market seems more resilient to geopolitical shocks, however. Finally, adverse geopolitical events are also associated with greater economic and political uncertainty in Europe.

Determinants of the Behaviour of Entities on the Insurance Market in the Light of Changes Introduced by the IDD Directive

AbstractOne of the most significant legal acts concerning the sale and management of insurance risk was issued on January 20, 2016, based on Directive (EU) 2016/97 of the European Parliament and of the Council of 20 January 2016 on insurance distribution (IDD Directive). The adoption of European IDD principles aims to enhance transparency in the operations of insurance distributors and improve the standards of their business practices. Its protective scope encompasses all individuals and entities involved in the sale of insurance products. The aim of the article is to ascertain the regulatory authorities’ impact on the insurance market, consideration of consumer protection, in light of the changes introduced by the IDD directive. The primary entities under examination, in the mentioned context of consumer protection, are distributors and supervisory authorities. The discussion includes an overview of the scale of the insurance market and its fundamental applications, as well as compliance within the framework of behavioural economics theory. Additionally, the paper addresses the aspect of threats posed to consumers by the analyzed changes in the European insurance distribution market. In this segment, the authors concentrate on the economic and social ramifications of IDD implementation for entities operating within the insurance market. The concluding section outlines the potential for development and the future prospects of financial intermediation concerning IDD utilization.

Effect of different pre-treatment on acrylamide content, nutrition value, starch digestibility and anthocyanin bioaccessibility of purple sweet potato (Ipomoea batata) deep-fried chips

Veggie chips have gained popularity in the European market. These are considered healthier than potato chips by consumers. However, few works evaluate their nutritional and digestibility. The current work aimed to evaluate the effect of four pre-frying treatments (soaking, blanching, pulsed electric field (PEF) and PEF + blanching combination (PEFB)) on the chemical composition, anthocyanins, acrylamide, and digestive behavior (starch hydrolysis and anthocyanins bioaccessibility) of purple sweet potato deep-fried chips. In total 15 independent batches were made, three for each studied treatment (also a control without pretreatment was developed). The studied pretreatments impacted on fat and starch content, especially blanching and PEFB, which caused an increase in fat absorption and break starch, generating maltodextrins. Nineteen anthocyanins were detected, mainly cyanidin and peonidin derivatives, but a drastic loss was observed in blanched, PEF-treated and PEF-B-Treated chips. Acrylamide values ranged from 504.11 to 6350.0- μg/kg, with the highest values reported by untreated chips and the lowest by PEF-B-treated chips (p < 0.05). The anthocyanin's bioaccessibility ranged between 66.57 and 92.88%, with soaked chips that showed the highest values.

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.

Hedging Carbon Price Risk on EU ETS: A Comparison of Green Bonds from the EU, US, and China

This article aims to examine the hedging effect of green bonds in the US market, the European market, and the Chinese market on carbon price risk in the European Union Emission Trading System (EU ETS) from 2021 to 2023. By using daily datasets extracted from Bloomberg and the Vector Error Correction Model (VECM), the research provides evidence of the hedging effect of green bonds in all three markets on carbon price risk in the EU ETS. The paper concludes that the hedging ratio is positive for green bonds in the EU and China, while the figure for the US market is negative. Moreover, there is a positive effect of oil prices on carbon returns in EU ETS. Meanwhile, the opposite is found for stock prices.

Production or transmission investments? A comparative analysis

AbstractThe European electricity market is moving towards an integration process, and to facilitate that integration and the flow of electricity in that market, the European Transmission System Operator proposes different investments in transmission and production capacities. I develop a model of imperfect competition to study those investments, and I identify the economic forces that determine the equilibrium price and the flow of electricity: The size and the competitive effects. I prove formally when those forces operate simultaneously or independently, and how they determine consumers’ surplus and suppliers’ profits. I prove that an investment in transmission capacity outperforms an investment in production capacity by maximizing consumers’ welfare, but the performance in terms of suppliers’ profits is ambiguous.

R&amp;D Expenditures and Analysts’ Earnings Forecasts

Previous research provides conflicting results regarding how R&amp;D expenditures impact market value. Given that financial analysts are the primary intermediaries between companies and investors, our study focused on the impact of R&amp;D-related uncertainty, growth, and information asymmetry associated on analysts’ earnings forecasts. Based on 19,834 firm-year observations in the European market between 2005 and 2020, our results show that R&amp;D activities lead to higher absolute forecast error and negative forecast error, indicating higher forecast inaccuracy with an optimistic bias. Additionally, these investments contribute to higher forecast dispersion, indicating disagreement among financial analysts. The comparison between 17 industries revealed that these effects are more pronounced in R&amp;D-intensive industries than in non-R&amp;D industries, uncovering the varied relationship between R&amp;D investments and analyst forecasts across sectors.

Nutritional and microbial profiles of ripened plant-based cheese analogs collected from the European market

Plant-based cheese analogs have emerged as a novel global market trend driven by sustainability concerns for our planet. This study examines eleven soft ripened plant-based cheese analogs produced in Europe, primarily with bloomy rinds and cashew nuts as the main ingredient. First, we focused on exploring the macronutrients and salt content stated on the labels, as well a detailed fatty acid analysis of the samples. Compared to dairy cheeses, plant-based cheeses share similarities in lipid content, but their fatty acid profiles diverge significantly, with higher ratio of mono- and polyunsaturated fatty acids such as oleic and linoleic acids. We also investigated the microbiota of these analog products, employing a culture-dependent and -independent approaches. We identified a variety of microorganisms in the plant-based cheeses, with Lactococcus lactis and Leuconostoc mesenteroides being the dominant bacterial species, and Geotrichum candidum and Penicillium camemberti the dominant fungal species. Most of the species characterized are similar to those present in dairy cheeses, suggesting that they have been inoculated as culture starters to contribute to the sensorial acceptance of plant-based cheeses. However, we also identify several species that are possibly intrinsic to plant matrices or originate from the production environment, such as Pediococcus pentosaceus and Enterococcus spp. This coexistence of typical dairy-associated organisms with plant associated species highlights the potential microbial dynamics inherent in the production of plant-based cheese. These findings will contribute to a better understanding of plant-based cheese alternatives, enable the development of sustainable products, and pave the way for future research exploring the use of plant-based substrates in the production of cheese analogues.

Динамічні якості пасажирського поїзда зчленованої конструкції

The importance of this work stems from the need for renewing the home rolling stock and integrating it into the European market of transport services. The introduction of speedy train operation calls for increased attention to theoretical studies aimed at ride performance improvement. The analysis of passenger traffic safety for home and European tracks of different and geometries calls for assessing the ride performance of passenger trains. In doing so, steady and transient traffic conditions must be considered. This approach to theoretical studies allows one to improve the safety indices of speedy passenger trains. This paper presents the results of theoretical evaluation of the ride performance of an articulated and a standard passenger train. The cars of both trains are equipped with wheels of different profiles used on the Ukrainian and European railways. An assessment of the predicted dynamic performance of the articulated passenger train shows that its cars demonstrate a better ride performance, thus improving passenger comfort and train operating safety throughout the allowable speed range in normal conditions. It is undesirable for such trains to move in curves of small and medium radius. In addition, the articulated train cost is lower than the traditional train one because of a lower number of trucks. The ride performance is also assessed for cars whose wheels are compatible with different rail profiles, which allows them to be used both on the Ukrainian and on the European railways. As shown by calculations, the universal wear-resistant wheel profile does not impair the car ride performance of the trains considered. better ride performance.

What drives the price behavior of US sustainable stocks?

PurposeThis paper aims to identify the key drivers of US sustainable stock price movements in both the short and long term, deploying a rich collection of variables corresponding to green finance, investor attention and sentiment, market fear and uncertainty, macroeconomic variables, common market risk factors, commodity markets and the carbon emission market.Design/methodology/approachThe empirical analysis is based on two main methodologies. First, the elastic net penalized regression is utilized to select the factors most influential on the price formation of sustainable stocks. Second, short- and long-run dynamics of the chosen factors are examined using the dynamic simulations of the autoregressive distributed lag (DYNARDL) model.FindingsOf 32 candidate variables, the elastic net chooses US renewable energy, European sustainable stock market, EU ETS emission allowances, public attention to sustainable finance, gold and European renewable energy as the most contributing factors to the price behavior of sustainable stocks. The DYNARDL estimation results reveal that US renewable energy, European sustainable stock market and EU ETS emission allowances are important determinants in the short and long term, while public attention (European renewable energy) tends to affect sustainable stock prices only in the short (long) run.Practical implicationsThe corresponding short- and long-run effects of US renewable energy, EU ETS emission allowances and European sustainable stocks on US sustainable stock prices should induce policymakers to keep the price behavior of these factors under systematic review. The formulation of policy measures could serve to safeguard the sustainable stock market from the price vagaries in these influential markets.Originality/valueRelevant literature often focuses on the reaction of sustainable stocks to mainstream assets and risk proxies, limiting analysis to a few factors and providing an incomplete understanding of the drivers behind sustainable stock prices. More comprehensive research is needed due to the lack of studies on the determinants of sustainable stock prices and the growing global demand for these investments. This paper aims to address this gap by examining the potential explanatory power of 32 candidate factors representing key players in the global economic and financial landscape.

BOOK REVIEW of European Democracy and Single Market: 30 Years of the Maastricht Treaty

The book under review focuses on two of the most important aspects of the development of the EU integration process – the strengthening of the EU founding value of democracy and the achievement of the EU Single market objective following the entering into force of the Maastricht Treaty. The collective volume features authors coming from different national and academic backgrounds. The democracy-market nexus is approached from a number of perspectives, not always much explored in the past. The analyses seems to suggest that a durable evolution of the EU integration process can only be based on basic principles or founding values of the EU, like in the case of democracy, which is one of the most important ingredients for a European Single market, focused more on social and environmental issues rather than economic ones.

Effects of adverse geopolitical risk on price bubbles contagion from European natural gas prices to international energy prices

PurposeThe recent Russia–Ukraine conflict highlights the geopolitical importance of natural gas, especially in Europe. In this light, this study examines the impact of the Russia–Ukraine conflict on the spread of price bubbles from European natural gas to international energy prices.Design/methodology/approachThe Generalized Supremum Augmented Dickey-Fuller (GSADF) test is employed to detect the occurrence of price bubble episodes while the Dynamic Logit Model is used to examine price bubble contagion between the two markets. Further, a tri-variate VAR model is used to examine the determinants of the price bubble.FindingsThe findings reveal multiple bubble episodes in both European natural gas and international energy prices. Further, evidence of bilateral contagion between European natural gas and the international energy market is found. In addition, the Russia–Ukraine conflict triggers price bubble episodes in both markets. Finally, a counterfactual analysis suggests that the conflict increases the bubble contagion from the European natural gas market to the international energy market by about 40%. These findings imply that the Russia–Ukraine conflict is a significant driver of high upside risks to bubble occurrence and subsequent contagion to both European natural gas and international energy prices.Originality/valueTo the best of our knowledge, this study contributes new empirical evidence that the Russian–Ukrainian conflict significantly impacts the spread of price bubbles from the European natural gas market to international energy markets.