Long-term Investment Research Articles

Measure Twice, Cut Once: Unit Profitability, Scalability, and the Exceptional Growth of New Firms

By studying three promising venture pairs with different business models in different nascent markets, we explore how some new firms grow into mature firms and some promising peers do not. The successful firms first use a learning process that begins with (1) focused attention on unit profitability (not growth), then broad (not narrow) learning, and finally active delay (not acceleration) of growth. They then use a capability-building process that (2) shifts to focused attention on unit-profitable growth, then makes long-term investments in profit-oriented capabilities, and finally leverages these capabilities into new products. In contrast, peers with focused attention on growth ironically fail to achieve it. Broadly, we contribute a process theory of exceptional growth that fills the gap between the growth of new firms in the entrepreneurship literature and the growth of mature firms in the strategy and organization theory literatures. Further, we add the importance of learning content—not just learning processes—to the entrepreneurship literature on new firm growth and a rare, novel, and grounded account of the origin of capabilities to the strategy literature on the resource-based view and mature firm growth. Finally, we add to practice the significance of product–market–profit fit and a precise definition of premature scaling. Funding: This work was supported by the Strategy Research Foundation [Grant SRF-2018-DP-9167].

STATE REGULATION OF THE EXTRACTION OF CRITICAL MINERALS AS A DOMINANT COMPONENT OF ACHIEVING THE GOALS OF SUSTAINABLE DEVELOPMENT AND STRENGTHENING THE ECONOMIC SECURITY OF THE STATE

The article states that the climate crisis and measures to mitigate it in recent years have significantly changed the energy landscape of the countries of the world and the configuration of the investment portfolio. Long-term investments in fossil fuels have been replaced by investments in environmentally friendly technologies, renewable sources of electricity, and smart systems for its distribution and storage. It is emphasized that even with full support of investments, plans for the decarburization of the electric power industry may remain unattainable, as the global reserves of «critical minerals», which are absolutely necessary for the transition to ecologically clean electric power, are noticeably decreasing and the demand continues to grow relentlessly. The scenarios developed by the International Energy Agency for the further transformation of the electric power sector to a low-carbon economy model were reviewed and briefly characterized: the scenario of declared policy (STEPS), the scenario of declared obligations (APS), and the scenario of net zero emissions by 2050 (NZE). The main aspects of each of the scenarios are outlined: the volume of demand for «critical minerals» their geographical concentration of extraction, and processing. It is emphasized that the world leader in the extraction and processing of «critical minerals» is the PRC, which dictates the «rules of the game» to the majority of the world's countries. Therefore, the issue of supplies of “critical minerals” is quite painful. It was emphasized that critical minerals market participants hope to reduce total dependence through new mining projects in different geographical regions, facilitating cross-investment opportunities between partner countries, and strengthening cooperation through initiatives such as the Mineral Security Partnership and the implementation of financial instruments. The potential of Ukraine's «critical minerals» and its ability to reduce the dependence of EU countries on the People's Republic of China are characterized. The main challenges of the development of the extractive industry in Ukraine are identified, and the main vectors of the Roadmap of the partnership between Ukraine and the EU regarding critical raw materials for 2023-2024 are outlined. It was emphasized that in order for Ukraine not to become only a supplier of raw materials, it is necessary to develop the processing of raw materials and the production of products with added value. It is emphasized that such localization requires much wider efforts of the government than the list of measures in the field of regulating the extraction of «critical minerals» defined by the latest legislative acts. The author emphasizes the need to develop a comprehensive system of incentives and introduce new opportunities for stabilization and sustainable development of Ukraine's economy in order to ensure sustainability and progress towards sustainable resource management and optimization of supply chains for critical raw materials. Proposals have been developed for climate-smart mining of «critical minerals» in Ukraine in the near future.

Research on Portfolio Investment in the Risky U.S. Stock Market Based on the Mean-Variance Model

Abstract: Against the backdrop of a thriving securities market and economy, there is a growing demand among investors for stock portfolio models in risky markets. This paper explores the application of the mean-variance model in this context, aiming to assist investors in making more informed investment decisions in an uncertain market. Through an in-depth analysis of the mean-variance model, the main conclusion of this paper is that certain stocks, such as AAPL, receive a higher investment proportion due to their lower risk and stable expected returns. In contrast, some high-risk or low-expected-return stocks, such as SBUX, MSFT, and QCOM, hold a smaller or zero proportion in the portfolio. This conclusion highlights the importance of balancing risk and return when constructing a portfolio and provides investors with specific asset allocation recommendations. It can help them effectively control risk while pursuing maximum returns, thereby achieving long-term stable investment gains.

The Dual Leverage and Mechanism of ESG Information Disclosure on Investor Behavior

Abstract: With the global emphasis on sustainable development, ESG information disclosure has become a key factor for investors to assess corporate value and risk. The academic value of this paper lies in an in-depth analysis of the reverse effect, which is not mentioned in most literature. It stands from the perspective of investors' investment purposes and interests, the attitudes of long-term investors who desire sustainable development and short-term investors who only care about immediate returns in a short period when facing ESG information disclosure. On the other hand, there are negative impacts on investors due to reasons such as government policy standards or the level of corporate ESG information disclosure itself, which may also prevent investors from achieving their expected goals, leading to investment risks and ultimately investors may flow out of the company. At the same time, some external factors can also lead to a dual leverage effect, such as the economic slowdown caused by the pandemic.

Learning from COVID-19: strengthening Australia's research capacity through preparedness and collaboration.

The coronavirus disease 2019 (COVID-19) pandemic has highlighted that preparedness for and responsiveness to pandemics requires public health platforms and processes which are nimble and evidence-based and a research ecosystem which is rapidly responsive to the evolving needs of society and decision-makers. The national BEAT COVID-19 research consortium was funded in 2020 by the Snow Medical Research Foundation (Snow Medical). Its Expert Advisory Committee met with the consortium post-pandemic to summarise the research undertaken and to consider lessons learned through the research response to COVID-19 in Australia. The panel observed that philanthropy offered an important 'kick-starter' funding mechanism for urgent research, which facilitated leveraging of additional funds. It further agreed that research requirements for strengthening Australia's pandemic preparedness and response include: (1) development of a national health and medical research strategy for pandemic research; (2) long-term investment in pre-established research partnerships and networks; (3) systemic procedural improvements, e.g. in ethics, governance and resource allocation; (4) responsive funding mechanisms including philanthropy; and (5) integration of research outputs into health practice and decision-making, as illustrated in Figure 1.

Investor relations and corporate governance in the global energy sector: A theoretical review of best practices and their application in emerging economies

Investor relations and corporate governance are critical components in ensuring the sustainable development and operational efficiency of companies within the global energy sector. This theoretical review explores the best practices in investor relations and corporate governance, particularly focusing on their application within emerging economies. The global energy sector is highly capital-intensive, requiring robust governance structures to manage risks, ensure transparency, and align the interests of stakeholders. Effective investor relations strategies foster trust, provide timely and accurate information, and enhance shareholder engagement, all of which are essential for securing long-term investments in energy projects. Corporate governance, on the other hand, ensures accountability, compliance with regulatory frameworks, and ethical management practices. The review highlights best practices in corporate governance, including the establishment of independent boards, strong leadership, risk management frameworks, and the importance of environmental, social, and governance (ESG) criteria in decision-making processes. In terms of investor relations, strategies such as proactive communication, regular financial disclosures, and engagement with both institutional and retail investors are identified as key to maintaining investor confidence. In emerging economies, where energy needs are rapidly increasing, the application of these best practices presents both challenges and opportunities. Regulatory frameworks in these regions are often evolving, and companies must navigate complex political and economic environments while adhering to global standards. This review discusses how emerging markets can benefit from adopting globally recognized governance and investor relations practices to attract foreign investment and foster sustainable energy development. The theoretical insights presented offer a comprehensive understanding of the interplay between investor relations and corporate governance in the energy sector. Additionally, this review underscores the importance of adaptability and innovation in applying these best practices to the unique contexts of emerging economies.. Keywords: Investor Relations, Corporate Governance, Global Energy Sector, Emerging Economies, Best Practices, ESG Criteria, Stakeholder Engagement, Transparency, Risk Management, Sustainable Energy Development.

Sustainability and Efficiency in the Implementation of Technical Infrastructure Projects in an Urban Environment

The individual national programs through which part of the common policies of the EU are implemented contain strict requirements regarding the scope of measures financed by means of funds from the Union budget. In general, the programs are structured in such a way as to ensure both demarcation and complementarity between them, in order to achieve a certain degree of synergism accompanied by long-term investment. There are some opportunities to increase sustainability and efficiency in the implementation of technical infrastructure projects in urban environments financed by EU funds. The same are revealed when analyzing the scope of the specific measures implemented by different beneficiaries. They arise mainly from technological features, incl. consistency in the implementation of individual construction operations. The present study focuses on such possibilities, incl. specific actions contributing to increasing the efficiency of investments and saving public funds in the conditions of their limited amount. Two specific programs are covered, the implementation of which is forthcoming within the 2021-2027 programming period.

Trends in the quality of maternal and neonatal care in Sweden and Norway as compared to 12 WHO European countries: A cross-sectional survey investigating maternal perspectives during the COVID-19 pandemic.

Maternal-neonatal healthcare services were severely disrupted during the COVID-19 pandemic in even high-income countries within the World Health Organization (WHO) European Region. The objective of this study was to compare trends in the quality of maternal and neonatal care (QMNC) in Sweden and Norway to 12 other countries from the WHO European Region during the COVID-19 pandemic, and to identify domains for improvement. This cross-sectional study included women giving birth in Europe from March 1, 2020 to December 31, 2022. Women answered an online, anonymous questionnaire which included 40 WHO Standard-based Quality Measures collectively scored as the total QMNC index (0-400) and separately in four subdomains (0-100): provision of care, experience of care, availability of human and physical resources, and reorganizational changes due to COVID-19. To assess reported QMNC changes over time, we used adjusted quantile regression models. gov Identifier: NCT04847336. Of the 45151 women included in the study, 13 117 (29.1%) were from Sweden and Norway and 32034 (70.9%) from the 12 WHO European countries. The total QMNC index for Sweden and Norway (median: 325, IQR: 285-355) was higher than the 12 WHO European countries (median: 315, IQR: 265-350, p < 0.001) as were trends in QMNC index over time (Sweden and Norway median: 310-345; 12 WHO European countries median: 305-340). Sweden and Norway also had higher scores in three-of-four QMNC subdomains, with the 12 WHO European countries scoring higher only for reorganizational changes due to COVID-19. In adjusted quantile models of the total QMNC index, Sweden and Norway had higher scores, with largest differences in the lower quantiles (p < 0.001 in all percentiles). Across Europe, there are significant gaps in the quality of maternal-neonatal healthcare services. Although women giving birth in Sweden and Norway reported higher QMNC scores in all subdomains except for "reorganizational changes due to COVID-19," there is room for improvement and shared learning across Europe. Policymakers should prioritize long-term investments in maternal and neonatal healthcare, ensuring that facilities are adequately equipped during public health crises and that all women have access to high-quality, evidence-based, equitable, and respectful care.

Assessing the Best Cryptocurrencies for Long-Term Investment Using Mean Reversion and Half-Life Volatility Models

Assessing the Best Cryptocurrencies for Long-Term Investment Using Mean Reversion and Half-Life Volatility Models

Character and Evolution of Sunken Groundwater-Harvesting Agroecosystems in Aeolian Sand since Early Islamic Times, between Iran and Iberia

ABSTRACT By reviewing traditional, sunken, groundwater-harvesting agroecosystems (SGHAS) in coastal and inland aeolian sand situated in Iran, Egypt, Gaza Strip, Algeria and Iberia, coupled with image interpretation and geospatial analysis, we study the innovation and function of recently excavated Early Islamic (EI; tenth-twelfth century), Plot-and-Berm agroecosystems along the southeastern Mediterranean coast of Israel. The SGHAS and EI agroecosystems, usually affiliated with nearby towns, possess an aeolian sand substrate enrichened with urban refuse and/or organic material. The long-term investment in SGHAS attained profitable water security in the form of temporally continuous, shallow groundwater, replenished by rainfall. The crops in SGHASs include a wide range of vegetables, watermelons, dates and grapes, implying that the EI crops were partly or fully different. The spotty, historic appearance of SGHAS since the fifteenth–sixteenth centuries temporally lags after the abandonment of the EI agroecosystems, does not support spatial and temporal connectivity of sand agriculture knowledge, but probably exemplifies the appearance of site-specific ingenuities derived from growing agro-technological knowledge, crop variety and needs for food security. This study demonstrates the importance of traditional analogues for interpreting research gaps of archaeological, agricultural landscapes and provides insight for establishing traditionally-based, sustainable agriculture in sand.

The Impact of ESG Performance on the Financial Performance of Chinese High-Tech and Internet Industry Firms

This study aims to explore the impact of Environmental, Social, and Governance (ESG) performance on the financial performance of firms in China’s high-tech and internet industries. Using annual data from 100 companies spanning from 2015 to 2022, a fixed effects model is applied for empirical analysis. The study finds that overall ESG performance has a significant positive impact on firms' return on assets (ROA) and net profit margin (NPM), with the governance (G) and social (S) dimensions showing particularly strong effects. While the environmental (E) dimension has a weaker short-term impact on financial performance, its long-term benefits are undeniable. Firm size and market share also have significant positive effects on financial performance. The results suggest that optimizing governance structures and actively fulfilling social responsibilities can enhance financial performance, while long-term investments in environmental responsibility should be integrated into corporate strategies. Overall, the findings provide empirical evidence for companies in formulating ESG strategies and offer specific policy recommendations for the sustainable development of China’s high-tech and internet industries.

IMPACT ASSESSMENT OF INFORMATION TECHNOLOGY ON INVESTMENT CHOICE DECISIONS OF ACADEMIC PROFESSIONALS

The substantial impact of information technology on investment decision-making is explored in this study, and strong empirical support is provided through a significant regression model. Understanding the extent to which technology influences investment choices is of utmost relevance in a time of fast technological advancement. The research makes use of a varied dataset that includes a variety of economic and market characteristics, employing robust statistical analysis to evaluate the relationship between technology and investment decisions. Our findings show that information technology and investing choices are statistically significantly correlated. The regression model illustrates how technology is increasingly being used into investment strategies and how it influences investors' decisions. This study emphasizes the importance of incorporating technical expertise into investment plans, with a focus on data analytics, artificial intelligence, and long-term tech investments. Furthermore, the ease with which mutual funds can be invested in, with alternatives for both novice and experienced investors, has made them a practical and accessible option as the study points mutual funds as the most preferred option for investment. Their liquidity and transparency also resonate with investors who appreciate the ability to monitor their investments easily and access their funds when needed. The results of the study highlight how crucial it is to comprehend investor preferences for financial goods. The popularity of mutual funds not only demonstrates their benefits but also emphasizes the necessity for financial institutions and advisors to customise their services and products in order to meet investor needs. KEYWORDS: Information Technology, Investment Choice Decisions, Mutual Funds

Cracking the Code: Hidden Choices and Visible Impacts Pattern Recognition in Corporate Finance

AbstractResearch in corporate finance suffers from bounded rationality due to static modeling. Adopting factor analysis, an unsupervised machine learning approach, and balance sheet information (accounts) over time, we find underlying dynamic latent corporate finance decisions. Our study identifies three latent corporate finance decisions adopted by executives in Pakistan, (1) long-term capital investment, (2) short-term debt credit, and (3) financial flexibility. The order of the decisions and the empirical tests highlight agency problems rooted in familial ownership concentration. We find that long-term capital investment and short-term debt credit decisions significantly reduce the firms’ present and future performance. Conversely, managers do not embrace financial flexibility, despite its ability to improve performance. The study highlights a contradiction, firms bounded by ownership concentration prefer control over performance and do not make decisions to optimize and protect minority shareholders’ wealth, depicting a moral hazard problem.

Applying portfolio theory to benefit endangered amphibians in coastal wetlands threatened by climate change, high uncertainty, and significant investment risk

The challenge of selecting strategies to adapt to climate change is complicated by the presence of irreducible uncertainties regarding future conditions. Decisions regarding long-term investments in conservation actions contain significant risk of failure due to these inherent uncertainties. To address this challenge, decision makers need an arsenal of sophisticated but practical tools to help guide spatial conservation strategies. Theory asserts that managing risks can be achieved by diversifying an investment portfolio to include assets – such as stocks and bonds – that respond inversely to one another under a given set of conditions. We demonstrate an approach for formalizing the diversification of conservation assets (land parcels) and actions (restoration, species reintroductions) by using correlation structure to quantify the degree of risk for any proposed management investment. We illustrate a framework for identifying future habitat refugia by integrating species distribution modeling, scenarios of climate change and sea level rise, and impacts to critical habitat. Using the plains coqui (Eleutherodactylus juanariveroi), an endangered amphibian known from only three small wetland populations on Puerto Rico’s coastal plains, we evaluate the distribution of potential refugia under two model parameterizations and four future sea-level rise scenarios. We then apply portfolio theory using two distinct objective functions and eight budget levels to inform investment strategies for mitigating risk and increasing species persistence probability. Models project scenario-specific declines in coastal freshwater wetlands from 2% to nearly 30% and concurrent expansions of transitional marsh and estuarine open water. Conditional on the scenario, island-wide species distribution is predicted to contract by 25% to 90%. Optimal portfolios under the first objective function – benefit maximization – emphasizes translocating frogs to existing protected areas rather than investing in the protection of new habitat. Alternatively, optimal strategies using the second objective function – a risk-benefit tradeoff framework – include significant investment to protect parcels for the purpose of reintroduction or establishing new populations. These findings suggest that leveraging existing protected areas for species persistence, while less costly, may contain excessive risk and could result in diminished conservation benefits. Although our modeling includes numerous assumptions and simplifications, we believe this framework provides useful inference for exploring resource dynamics and developing robust adaptation strategies using an approach that is generalizable to other conservation problems which are spatial or portfolio in nature and subject to unresolvable uncertainty.

ФОРМУВАННЯ ФІНАНСОВО-ІНВЕСТИЦІЙНОГО ПОТЕНЦІАЛУ ПІДПРИЄМСТВА З ПОЗИЦІЇ СТРАТЕГІЧНОГО ПІДХОДУ

The article analyzes approaches to the concepts of "financial potential" and "investment potential", reveals their content and features. Based on the results of a critical analysis of scientific sources, it is justified that the financial and investment potential of the enterprise must be considered as a single definition, which is determined by a set of general characteristics. Based on the conducted research, the author's definition of the concept of "financial and investment potential" of an enterprise is proposed. The financial and investment potential of an enterprise is the ability of an enterprise to accumulate a set of internal and external financial and investment resources, to use them as efficiently as possible for the purpose of obtaining economic benefits, to ensure strategic and tactical development goals. It has been proven that the financial and investment potential of a business entity has a number of varieties. The classification features of the financial and investment potential of the business entity are singled out, namely: according to the time required to achieve a certain value of the financial and investment potential of the business; depending on the degree of realization of the financial and investment potential of the business entity; depending on the method of obtaining information necessary for assessing the financial and investment potential of the business entity; on the basis of the expected results of the realization of the financial and investment potential of the enterprise. The classification of factors affecting the financial and investment potential of a business entity is generalized. The sequence of development and implementation of the strategy for the formation of the financial and investment potential of the enterprise is proposed. It determines the priority directions of development, the sources of investment resources and the sequence of stages of realization of long-term financial and investment goals, which ensure the overall development of the enterprise's activities in the future. The formation of the financial and investment potential of the enterprise in the strategic perspective is aimed at restoring the stable state of enterprises, including as a result of investment. And it includes the effect of the joint action of financial and investment resources, combining current and strategic goals with the possibility of attracting internal and external sources for financial support of the enterprise's investment activities.

Global property rights and land use efficiency

The study investigates the global impact of land property rights on land use efficiency (LUE), as measured by the key indicator for United Nations Sustainable Development Goal 11.3.1, namely Land Consumption Rate to Population Growth Rate. By utilizing human-land change data from 165 countries spanning the period between 1990 and 2020, we have developed a fixed effects model and employed legal origins as an instrumental variable to examine the influence of land property rights security on LUE. Our findings demonstrate that the security of land property rights significantly influences LUE, with common law countries exhibiting higher levels of LUE compared to civil law countries while controlling for other variables. Stability in property rights encourages long-term investments in infrastructure and sustainable land management practices, thereby enhancing land productivity and mitigating urban sprawl. Furthermore, safeguarding property rights limits governments’ power to expropriate lands, facilitating rational and efficient land transactions that contribute towards achieving Sustainable Development Goals.

Inflation hedging: a comparative wavelet quantile correlation analysis of real estate and alternative assets

PurposeConducting an analysis spanning from 2000 to 2023, this research evaluates the effectiveness of real estate assets in hedging against global and energy inflation, benchmarked against other compelling investment options such as oil, gold, silver and stocks.Design/methodology/approachThis study employs the wavelet quantile correlation (WQC) methodology. The latter sheds light on dynamic market interactions by scrutinising dependency structures across multiple time scales and also by capturing tail dependence. The adaptability of the wavelet transform, across a spectrum of frequencies, emerges as an indispensable tool for studying time series while also unravelling relationships among variables across diverse quantiles.FindingsThe findings reveal that the response to inflationary pressures is contingent upon the asset class, investment horizon and type of inflation under consideration. While precious metals demonstrate effectiveness over short-term horizons, French-listed real estate exhibits compelling inflation-hedging characteristics as the investment horizon extends. Oil emerges as an unequivocal hedge against both global and energy inflation.Practical implicationsTo counteract the effects of inflation, investors and households may feel compelled to refine their investment strategies, opting to bolster their portfolios with instruments proven to serve as reliable safeguards against inflation, as indicated by this study.Originality/valueIn conjunction with a surge in inflationary pressures, this study delves into the hedging capabilities of assets, exploring their efficacy not only across short- and long-term investment horizons but also within diverse scenarios characterized by fluctuating levels of global and energy-related inflation. To the best of our knowledge, no previous article employed the WQC technique to evaluate the inflation-hedging nexus.

Investor Horizon, Experience, and the Disposition Effect

The disposition effect, characterized by the tendency to sell winning assets too soon and hold onto losing assets for too long, is a widely documented phenomenon among investors. Using granular trade-level data, we examine the disposition effect among different categories of foreign institutional investors (FIIs) in the context of an emerging market. Using survival analyses over several years, we find that short-term investors are most prone to disposition effects, while long-term investors are least prone. We also find that experience, as indicated by cumulative years in the market and the volume of stocks traded, mitigates the disposition effects, but only among long-term FIIs. While FIIs exhibit higher disposition effects during crisis periods, this effect is mitigated by experience, particularly among long-term FIIs. Our findings suggest that accounting for heterogeneity in institutional investors, rather than treating them as a whole, is important for a better understanding of financial markets.

Consumer Buying Behaviour Towards Life Insurance Post-COVID-19 in Ghana

The current study explores consumer buying behaviour towards life insurance among private basic school teachers in the Cape Coast Metropolis of Ghana, focusing on the post-COVID-19 landscape. Utilizing a descriptive survey design, data were gathered through a five-point Likert-type scale questionnaire and analyzed using various statistical methods, including frequencies, percentages, mean, standard deviation, and Pearson Product Moment Correlation. Using a population of 224 private school teachers, the results indicated that teachers primarily opt for life, hospital, and education support plans, signifying an aspiration to secure their future and further their education. The study underscores the imperative for financial resilience post-COVID-19 to protect the emerging middle class from reverting to poverty. Although teachers employ strategic coping mechanisms during the pandemic, they expressed concerns over delayed life policy settlements, which have compounded their challenges. Recommendations include targeted engagement by insurance companies at private basic schools to elucidate the benefits of life policies, as well as the formulation of insurance packages that offer effective risk coverage and promote long-term investment, rather than merely focusing on tax benefits.

Dependence of green energy markets on big data and other fourth industrial revolution technologies

This paper analyzes the dependence and connectedness among fourth-industrial revolution technology markets (including big data and artificial intelligence, blockchain, and financial technology) and global and regional (US, Europe, and Asia) green energy markets. In particular, we consider the dynamic dependence among these markets in terms of both returns and volatility across different market conditions and investment horizons using the cross-spectral coherence and Quantile-VAR connectedness approach. Three main results emerge from our analysis. First, the return dependence is relatively stronger than volatility dependence and is stronger across most time scales among the technology markets and the European and Asian regional green energy indexes. Second, the return and volatility connectedness is stronger during extreme than normal market conditions. Unless under bullish market times, volatility connectedness appears smaller than return connectedness, implying that market volatility risks spread less forcefully among these markets than return risks under normal and bearish market periods. Third, geopolitical risks, business environment, economic policy, fixed-income, and oil and gold markets’ uncertainties are significant predictors of the degree of return and volatility connectedness. Overall, our findings offer crucial insights for short- and long-term investors interested in portfolios with modern technology and green assets. They also emphasize the roles of market and macroeconomic factors in shock propagation and their implications for low-carbon transition.