Energy Economics最新文献

Risk factors in the formulation of day-ahead electricity prices: Evidence from the Spanish case

IF 12.8 2区经济学

Energy Economics Pub Date : 2024-12-19 DOI: 10.1016/j.eneco.2024.108102

Eleftheria G. Paschalidou, Nikolaos S. Thomaidis

引用次数: 0

Asymmetric tail risk spillover and co-movement between climate risk and the international energy market

IF 12.8 2区经济学

Energy Economics Pub Date : 2024-12-16 DOI: 10.1016/j.eneco.2024.108122

David Adeabah, Thu Phuong Pham

引用次数: 0

The cost of uncertainty: Analysing the influence of coal price changes, the Russia-Ukraine war and geopolitical risk on risk premiums in the Indian electricity spot market

IF 12.8 2区经济学

Energy Economics Pub Date : 2024-12-14 DOI: 10.1016/j.eneco.2024.108129

Jalal Siddiki, Prakash Singh

{"title":"The cost of uncertainty: Analysing the influence of coal price changes, the Russia-Ukraine war and geopolitical risk on risk premiums in the Indian electricity spot market","authors":"Jalal Siddiki, Prakash Singh","doi":"10.1016/j.eneco.2024.108129","DOIUrl":"https://doi.org/10.1016/j.eneco.2024.108129","url":null,"abstract":"Using hourly data from June 1, 2020 to April 25, 2024, this paper first examines the characteristics of wholesale spot - Day Ahead Market (DAM) and Real Time Market (RTM) - prices in India. Second, we examine the impact on risk premiums (RPs) of changes in coal prices, the Russian-Ukraine war, demand conditions, economic policy uncertainty (EPU) and geopolitical risks (GPRs). We find that spot prices are highly volatile. Average hourly DAM prices are significantly higher than RTM prices for most hours during both weekdays and weekends, resulting in positive RPs and reflecting supply shortages and the presence of inefficiency in Indian wholesale electricity markets. The Russia-Ukraine war, EPU, GPRs, coal prices and high peak-hour demand increase RPs and are critical factors in explaining RPs. Results are robust across data frequencies and across sample periods. The results suggest increasing product diversification to reduce dependence on coal-based electricity production. These results have important policy implications for attempts to circumvent uncertainty, given that the Russia-Ukraine war has accelerated the rise in energy prices and brought significant uncertainty to Indian and global energy markets.","PeriodicalId":11665,"journal":{"name":"Energy Economics","volume":"128 1","pages":""},"PeriodicalIF":12.8,"publicationDate":"2024-12-14","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142873940","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

引用次数: 0

Are rural households hit hardest? Exploring the distributional effects of region-specific compensation payments in the Austrian CO2 pricing scheme

IF 12.8 2区经济学

Energy Economics Pub Date : 2024-12-13 DOI: 10.1016/j.eneco.2024.108118

Laura Wallenko, Gabriel Bachner

{"title":"Are rural households hit hardest? Exploring the distributional effects of region-specific compensation payments in the Austrian CO2 pricing scheme","authors":"Laura Wallenko, Gabriel Bachner","doi":"10.1016/j.eneco.2024.108118","DOIUrl":"https://doi.org/10.1016/j.eneco.2024.108118","url":null,"abstract":"In 2022 Austria has introduced a CO<ce:inf loc=\"post\">2</ce:inf> pricing scheme that aims at emissions from activities not covered by the EU Emissions Trading System. To increase social acceptability, the policy includes a region-specific compensation scheme, with higher transfers for households living in less densely populated areas. This is motivated by the hypothesis that rural households are hit harder by a CO<ce:inf loc=\"post\">2</ce:inf> price due to their relatively higher emission intensity of consumption. We test this hypothesis by using a recursive-dynamic computable general equilibrium model. Specifically, we compare the macroeconomic and distributional effects of three recycling schemes: i) region-specific transfers (the system in place), ii) no compensation but increased public consumption and iii) region- and income-specific transfers. At the macroeconomic level we find negative effects on GDP and welfare, compared to a baseline scenario without unilateral CO<ce:inf loc=\"post\">2</ce:inf> pricing under all three schemes. Interestingly, welfare effects are progressive irrespective of the recycling measure. Furthermore, we find that the scheme without compensation does not burden households in rural areas substantially more than those in urban areas. This results from an income side effect that works against the relatively stronger rise of consumer prices for rural households. However, the latter finding is sensitive to the labour market model closure, with a slightly higher burden for rural households under the assumption of full employment (as compared to our default closure with endogenous labour supply). Overall, we conclude that carbon pricing policies do not necessarily need to contain region- or income-based compensation schemes to enhance distributional equity.","PeriodicalId":11665,"journal":{"name":"Energy Economics","volume":"14 1","pages":""},"PeriodicalIF":12.8,"publicationDate":"2024-12-13","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142873877","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

引用次数: 0

Distributional effects of energy costs: Does firm ownership structure matter?

IF 12.8 2区经济学

Energy Economics Pub Date : 2024-12-12 DOI: 10.1016/j.eneco.2024.108108

Andu Berha, Sandeep Mohapatra

引用次数: 0

Oil price shocks and the connectedness of US state-level financial markets

IF 12.8 2区经济学

Energy Economics Pub Date : 2024-12-12 DOI: 10.1016/j.eneco.2024.108128

Onur Polat, Juncal Cunado, Oguzhan Cepni, Rangan Gupta

{"title":"Oil price shocks and the connectedness of US state-level financial markets","authors":"Onur Polat, Juncal Cunado, Oguzhan Cepni, Rangan Gupta","doi":"10.1016/j.eneco.2024.108128","DOIUrl":"https://doi.org/10.1016/j.eneco.2024.108128","url":null,"abstract":"This paper investigates the impact of oil supply, demand, and risk shocks on U.S. state-level stock and bond returns, utilizing daily data from February 1994 to March 2024. It examines the individual effects of oil price shocks on each state's stock and bond returns and explores how fluctuations in oil prices influence the interdependence between state-level stock and bond markets. The findings reveal that oil demand shocks have a significant positive impact, while oil supply shocks have a significant negative impact on state-level stock returns. Although state-level bond returns also react to these supply and demand shocks, their response is statistically less significant than that of stock returns, indicating that cross-asset diversification is possible during periods of oil supply and demand shocks. However, both stock and bond returns are significantly and negatively affected by oil risk shocks, which implies limited opportunities for cross-asset diversification when oil price fluctuations are driven by risk factors. Additionally, the interdependence between U.S. equity and bond markets is more significantly influenced by oil risk shocks than by supply or demand shocks, suggesting an increase in the interconnectedness of stock and bond returns following an oil risk shock. Further analysis, using a reverse-MIDAS model to relate high-frequency connectedness measures to monthly oil price shocks, indicates that oil supply shocks positively and significantly impact stock market connectedness, while oil inventory demand shocks negatively affect bond market connectedness. Implications of our findings are discussed.","PeriodicalId":11665,"journal":{"name":"Energy Economics","volume":"53 1","pages":""},"PeriodicalIF":12.8,"publicationDate":"2024-12-12","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142873936","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

引用次数: 0

The rise of clean energy markets: Evidence from frequency-domain spillover effects between critical metals and energy markets

IF 12.8 2区经济学

Energy Economics Pub Date : 2024-12-12 DOI: 10.1016/j.eneco.2024.108126

Yongguang Zhu, Yuna Gong, Lanyong Yang, Deyi Xu

{"title":"The rise of clean energy markets: Evidence from frequency-domain spillover effects between critical metals and energy markets","authors":"Yongguang Zhu, Yuna Gong, Lanyong Yang, Deyi Xu","doi":"10.1016/j.eneco.2024.108126","DOIUrl":"https://doi.org/10.1016/j.eneco.2024.108126","url":null,"abstract":"This study investigates the dynamic volatility spillovers among critical metals, traditional energy, and clean energy markets using a sophisticated frequency-domain approach. Leveraging the improved complete ensemble empirical mode decomposition with adaptive noise and time-varying parameter vector autoregression models, we decompose daily logarithmic returns into high, middle, and low-frequency components. Our findings reveal significant heterogeneity in spillover effects across different frequencies, industries, and commodity categories. Clean energy sectors emerge as prominent contributors to market spillovers, reflecting their increasing sensitivity to short-term market dynamics. In contrast, traditional energy markets transition from being spillover sources to net recipients as the energy transition accelerates. Critical metals, particularly lithium and platinum, play a dominant role in long-term market integration, highlighting their growing importance in the global energy transition. These results provide actionable insights for policymakers and investors seeking to manage risks and optimize strategies in the evolving energy landscape.","PeriodicalId":11665,"journal":{"name":"Energy Economics","volume":"14 1","pages":""},"PeriodicalIF":12.8,"publicationDate":"2024-12-12","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142873879","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

引用次数: 0

Hedging and tail risk in electricity markets

IF 12.8 2区经济学

Energy Economics Pub Date : 2024-12-12 DOI: 10.1016/j.eneco.2024.108132

Farhad Billimoria, Jacob Mays, Rahmat Poudineh

{"title":"Hedging and tail risk in electricity markets","authors":"Farhad Billimoria, Jacob Mays, Rahmat Poudineh","doi":"10.1016/j.eneco.2024.108132","DOIUrl":"https://doi.org/10.1016/j.eneco.2024.108132","url":null,"abstract":"One of the persistent concerns in scarcity-based electricity market designs is that markets for long-term contracts are highly illiquid or ‘missing’. In the context of decarbonisation, a key question arises as to whether this phenomenon will persist or improve as markets transition to greater proportions of zero-marginal cost renewables and storage. Using a stochastic equilibrium model and insights from insurance theory, we consider long-term hedging in the context of credit and financing constraints. For electricity markets dominated by thermal generation, the deliverability of long-term hedges can be significantly impacted by the volatility of thermal fuels and the co-dependence between them under extreme conditions. Our results demonstrate the importance of fuel hedging as an underlying driver of the cost and deliverability of electricity hedging. Where the underlying fuel exposure cannot be contracted, generators may need to price contracts at multiples of the expected value of spot prices. The results provide guidance for discourse on policy and market design in relation to tail risk. One interpretation of the results in this paper is that the lack of contracting for tail risks given a volatile raw commodity is not a market failure per se, but a rational response of market participants due in part to the expense of hedging generation when fuel exposures are unable to be hedged. Counterintuitively, in the context of the energy transition, our results show that, ceteris paribus, increasing the penetration of low carbon resources like wind, solar, and energy storage can add diversity to the risk exposures of the underlying hedge contract.","PeriodicalId":11665,"journal":{"name":"Energy Economics","volume":"32 1","pages":""},"PeriodicalIF":12.8,"publicationDate":"2024-12-12","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142873881","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

引用次数: 0

Corrigendum to “Cross-quantile risk assessment: The interplay of crude oil, artificial intelligence, clean tech, and other markets” [Energy Economics Volume 141, January 2025, 108085] 跨量纲风险评估：原油、人工智能、清洁技术和其他市场的相互作用》[《能源经济学》第 141 卷，2025 年 1 月，108085] 更正

IF 12.8 2区经济学

Energy Economics Pub Date : 2024-12-11 DOI: 10.1016/j.eneco.2024.108114

Mariya Gubareva, Muhammad Shafiullah, Tamara Teplova

引用次数: 0

Prosumers: Grid vs. individual storage 消费者：电网与个人存储

IF 12.8 2区经济学

Energy Economics Pub Date : 2024-12-07 DOI: 10.1016/j.eneco.2024.108095

Sai Bravo-Melgarejo, Carole Haritchabalet

引用次数: 0