{"title":"A partial correlation-based connectedness approach: Extreme dependence among commodities and portfolio implications","authors":"Syed Jawad Hussain Shahzad , Elie Bouri , Sitara Karim , Perry Sadorsky","doi":"10.1016/j.eneco.2025.108421","DOIUrl":"10.1016/j.eneco.2025.108421","url":null,"abstract":"<div><div>We propose a partial correlation-based connectedness approach to study the directional connectedness under normal and extreme market conditions among the returns of 22 commodities and compare it with the well-known Diebold and Yilmaz (i.e. generalized forecast error variance decomposition (GFEVD)) connectedness approach estimated at the mean and tails. Considering four groups of commodities, namely energy, agricultural, precious metals, and industrial metals, and daily data from September 1, 2005 to June 5, 2024, covering various crisis periods, we draw filtered networks and measures of directional connectedness. The main results are summarized as follows. Firstly, the total connectedness index captures the significant commodities related shocks, and intensifies during crises episodes, notably at the extreme lower quantile. Secondly, using partial correlations in the approach of connectedness leads to a surge of the total connectedness level at the extreme lower quantile and identifies the beginnings of major crises earlier than the GFEVD measure of connectedness. Thirdly, the connectedness structure of commodities based on partial correlation is unstable during turbulent market conditions, a feature that is ignored when the GFEVD approach of connectedness is used. Fourthly, in terms of practical implications, the partial correlation-based connectedness portfolio outperforms the GFEVD based minimum connectedness portfolio on a risk adjusted basis.</div></div>","PeriodicalId":11665,"journal":{"name":"Energy Economics","volume":"144 ","pages":"Article 108421"},"PeriodicalIF":13.6,"publicationDate":"2025-03-17","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143677566","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Energy EconomicsPub Date : 2025-03-17DOI: 10.1016/j.eneco.2025.108376
Martin Buchner , Miriam Rehm
{"title":"Energy poverty and health: Micro-level evidence from Germany","authors":"Martin Buchner , Miriam Rehm","doi":"10.1016/j.eneco.2025.108376","DOIUrl":"10.1016/j.eneco.2025.108376","url":null,"abstract":"<div><div>This paper aims to understand the health effects of energy poverty in Germany using SOEP panel data from 2010 to 2020. Linear probability and fixed effects ordered logit models reveal a consistently negative relationship of three expenditures-based energy poverty indicators with general health: the odds ratio of being in better health decreases between about 6 % and 8 %. This association is stronger for the subjective energy poverty metric: members of households unable to keep the home comfortably warm due to financial reasons have an about 18 % lower odds ratio of being in better health categories. Investigating potential channels shows that mental health is consistently negatively linked to our energy poverty metrics, while physical health is weakly associated with energy poverty in Germany, with the exception of doctor visits. Finally, by instrumenting energy poverty with data on energy price indices and matching energy costs to the heating systems used by households, we show that living in a household that experiences a transition to energy poverty due to rising energy prices is also linked to a lower likelihood of being in good health.</div></div>","PeriodicalId":11665,"journal":{"name":"Energy Economics","volume":"145 ","pages":"Article 108376"},"PeriodicalIF":13.6,"publicationDate":"2025-03-17","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143747186","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Energy EconomicsPub Date : 2025-03-15DOI: 10.1016/j.eneco.2025.108333
Grant D. Jacobsen
{"title":"Who adopts and deploys advanced home energy technologies?","authors":"Grant D. Jacobsen","doi":"10.1016/j.eneco.2025.108333","DOIUrl":"10.1016/j.eneco.2025.108333","url":null,"abstract":"<div><div>Technological innovation, including advances related to clean energy and artificial intelligence, have increased the potential role for the use of smart devices in residences, such as smart thermostats or smart speakers used to control connected equipment. While these devices hold promise for aiding a transition to a lower-carbon energy system – in part by enabling more advanced demand-side management energy programs such as “virtual power plants” – the extent to which they will do so depends on their rates of adoption and deployment by households. Using newly available data, this paper investigates the factors associated with the rates of adoption and deployment of smart devices. Key factors <em>positively</em> associated with adoption and deployment include graduating from college, income, broadband internet, and home square footage. Key factors <em>negatively</em> associated with adoption and deployment include female gender, renting, senior age and middle age (relative to young adult). These results may be helpful to utility managers or policymakers seeking to increase the diffusion of the next wave of residential energy technologies through marketing and outreach campaigns or other measures.</div></div>","PeriodicalId":11665,"journal":{"name":"Energy Economics","volume":"145 ","pages":"Article 108333"},"PeriodicalIF":13.6,"publicationDate":"2025-03-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143724327","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}
Energy EconomicsPub Date : 2025-03-15DOI: 10.1016/j.eneco.2025.108355
Shusheng Ding , Dandan Zheng , Tianxiang Cui , Min Du
{"title":"Corrigendum to “The oil price-inflation nexus: The exchange rate pass- through effect” [Energy Economics Volume 125, September 2023, 106828].","authors":"Shusheng Ding , Dandan Zheng , Tianxiang Cui , Min Du","doi":"10.1016/j.eneco.2025.108355","DOIUrl":"10.1016/j.eneco.2025.108355","url":null,"abstract":"","PeriodicalId":11665,"journal":{"name":"Energy Economics","volume":"144 ","pages":"Article 108355"},"PeriodicalIF":13.6,"publicationDate":"2025-03-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143628529","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Energy EconomicsPub Date : 2025-03-15DOI: 10.1016/j.eneco.2025.108399
Yuang Panwang , Pan Hu
{"title":"Lubrication or ignition? The role of asymmetric oil trade in Russia's international conflicts","authors":"Yuang Panwang , Pan Hu","doi":"10.1016/j.eneco.2025.108399","DOIUrl":"10.1016/j.eneco.2025.108399","url":null,"abstract":"<div><div>Energy trade, especially oil, significantly impacts global economic and political stability. This paper introduces the concept of asymmetric interdependence from International Political Economics into energy economics for the first time and develops a measurement index for oil trade asymmetric interdependence. Using bilateral panel data focusing on Russia and its trade partners, we find that symmetric oil trade significantly reduces the likelihood of interstate conflicts. At the same time, lower-income countries and non-neighboring countries show more significant performance. In addition, the oil trade asymmetric interdependence does not affect the likelihood of conflict in the same way that it does in other markets, such as coal and liquefied petroleum gases. In the analysis of Panel VAR, we find that oil trade asymmetric interdependence is the granger cause of conflicts. In conclusion, we believe that, rather than using energy trade as a weapon for sanctions and international struggle, opting for more symmetrical trade is more likely to contribute to the realization of peace. We therefore call for more equitable trade relations among the nations of the world.</div></div>","PeriodicalId":11665,"journal":{"name":"Energy Economics","volume":"144 ","pages":"Article 108399"},"PeriodicalIF":13.6,"publicationDate":"2025-03-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143677567","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}
Energy EconomicsPub Date : 2025-03-15DOI: 10.1016/j.eneco.2025.108402
Cong Li , Yue Zhang , Xihua Liu , Jiawen Sun
{"title":"Does artificial intelligence promote green technology innovation in the energy industry?","authors":"Cong Li , Yue Zhang , Xihua Liu , Jiawen Sun","doi":"10.1016/j.eneco.2025.108402","DOIUrl":"10.1016/j.eneco.2025.108402","url":null,"abstract":"<div><div>The lack of incentives for energy corporations to engage in green technology innovation (GTI) is a problem which has long plagued economic growth and sustainable development. The widespread integration of artificial intelligence (AI) innovation in the domain of environmental protection has given new impetus to GTI, sparking interest into its role in green transformation. This study investigates the impact of AI on GTI in Chinese energy corporations to explore whether it is diverting resources from GTI, or overcoming the lack of GTI incentives. The results indicate that AI indeed contributes to GTI, and that it does so by enhancing human capital and alleviating financial pressure. Additionally, this effect is more pronounced in the central and eastern regions, areas with stricter environmental regulations, and the midstream and downstream of the energy industry. These findings offer specific insights to simulate GTI, helping balance economic growth with sustainable development.</div></div>","PeriodicalId":11665,"journal":{"name":"Energy Economics","volume":"144 ","pages":"Article 108402"},"PeriodicalIF":13.6,"publicationDate":"2025-03-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143643960","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}
Energy EconomicsPub Date : 2025-03-13DOI: 10.1016/j.eneco.2025.108391
Miaomiao Tao , Jianda Wang , David Roubaud , Lingli Qi
{"title":"Global reach, local impact: How China's outward foreign direct investment shapes corporate carbon risk management?","authors":"Miaomiao Tao , Jianda Wang , David Roubaud , Lingli Qi","doi":"10.1016/j.eneco.2025.108391","DOIUrl":"10.1016/j.eneco.2025.108391","url":null,"abstract":"<div><div>Outward Foreign Direct Investment (OFDI) has emerged as a pivotal driver of globalization, enabling firms to broaden their reach across borders and tap into diverse resources. We present evidence supporting the role of OFDI in mitigating corporate carbon risk. However, the extent of the underlying mitigation effect varies depending on factors such as corporate nature, ESG ratings, and financial constraints. We also identify several intermediaries through which OFDI exerts its mitigating influence, such as corporate reputation, downside risk exposure, debt financing costs, and the firm's ability to innovate in green technologies. Further exploration substantiates the synergistic effects between OFDI and the emissions trading scheme, which together help further reduce corporate carbon risk. These findings offer valuable insights into how enhancing OFDI can mitigate carbon risk, thus supporting China's transition toward a low-carbon economy.</div></div>","PeriodicalId":11665,"journal":{"name":"Energy Economics","volume":"144 ","pages":"Article 108391"},"PeriodicalIF":13.6,"publicationDate":"2025-03-13","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143637411","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Energy EconomicsPub Date : 2025-03-13DOI: 10.1016/j.eneco.2025.108403
Shiqi Nie , Xiaojing Cao , Zilong Li , Mingxin Liu , Yiren Zhang
{"title":"Supply chain digitization in the net-zero era: The impact of digital technology, renewable energy, and infrastructure","authors":"Shiqi Nie , Xiaojing Cao , Zilong Li , Mingxin Liu , Yiren Zhang","doi":"10.1016/j.eneco.2025.108403","DOIUrl":"10.1016/j.eneco.2025.108403","url":null,"abstract":"<div><div>Achieving a net-zero emissions future hinges on integrating digital technology, renewable energy, and infrastructure development, collectively driving supply chain digitization and emissions reduction. This study explores the role of digital transformation in supply chain technologies across selected Asian countries from 2001 to 2021, analyzing the influence of enabling infrastructure, energy technology perspectives, renewable energy systems, supply chain digitization, and energy intensity. Employing empirical techniques such as the iterated principal factors squared multiple correlation test and the cross-section variance ratio test, this research assesses variance dynamics across multiple series. Combined with dynamic panel-data estimation, these methods provide a robust framework for evaluating the intricate relationship between digital transformation and supply chain innovation. The findings highlight a nuanced interplay between digital transformation, supply chain technologies, and the transition to net-zero emissions. While digital advancements can accelerate technological adoption, they may also introduce complexities shaped by infrastructure readiness, energy transitions, and renewable integration. Asian countries must navigate these challenges by fostering digital innovation while promoting sustainable, low-carbon energy systems. A strategic and integrated approach is essential to fully harness the potential of digital technologies in building a resilient and decarbonized supply chain.</div></div>","PeriodicalId":11665,"journal":{"name":"Energy Economics","volume":"144 ","pages":"Article 108403"},"PeriodicalIF":13.6,"publicationDate":"2025-03-13","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143677568","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}
Energy EconomicsPub Date : 2025-03-13DOI: 10.1016/j.eneco.2025.108400
Mansoor Khan , Salabat Khan , Imran Ur Rahman
{"title":"Supply-chain digitization and non-intrusive load monitoring with digital twins: The Impact of Energy Policies on Carbon Pricing and Renewable Energy Deployment","authors":"Mansoor Khan , Salabat Khan , Imran Ur Rahman","doi":"10.1016/j.eneco.2025.108400","DOIUrl":"10.1016/j.eneco.2025.108400","url":null,"abstract":"<div><div>The global push towards sustainable energy systems has led to increasing interest in digital tools that can optimize energy efficiency. In particular, emerging technologies such as supply chain digitization, non-intrusive load monitoring, and digital twin cities are gaining attention for their potential to enhance energy management practices. However, understanding their impact on energy efficiency policies, especially in developing countries, remains an area that requires further exploration. This study investigates how digitalization tools enhance energy efficiency policy cycles for 30 Asian developing countries between 1997 and 2022. Using a quantitative approach, we analyze panel data through the Panel Generalized Method of Moments (GMM) technique to assess the impact of supply chain digitization, non-intrusive load monitoring, and digital tools integration in energy efficiency policies. The findings indicate that while supply chain digitization can reduce energy consumption, it also presents some negative side effects. Additionally, the application of virtual buildings and digital twin cities contributes to improved natural resource management and economic outcomes, advancing integrated energy efficiency policy tools. By incorporating technologies such as digitalization and non-intrusive load monitoring, the study highlights how digital twin technologies help set and achieve energy efficiency targets, enhancing the efforts of policymakers and stakeholders in fostering a sustainable energy future.</div></div>","PeriodicalId":11665,"journal":{"name":"Energy Economics","volume":"144 ","pages":"Article 108400"},"PeriodicalIF":13.6,"publicationDate":"2025-03-13","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143682332","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}
Energy EconomicsPub Date : 2025-03-13DOI: 10.1016/j.eneco.2025.108395
Oscar Valencia , Juliana Gamboa-Arbeláez , Gustavo Sánchez
{"title":"Fiscal adjustments and the asymmetric effect of oil shocks","authors":"Oscar Valencia , Juliana Gamboa-Arbeláez , Gustavo Sánchez","doi":"10.1016/j.eneco.2025.108395","DOIUrl":"10.1016/j.eneco.2025.108395","url":null,"abstract":"<div><div>This research employs a quadratic exponential model to examine the dynamics of fiscal adjustments in the context of oil shocks. The findings suggest significant state dependence, with past fiscal adjustments increasing the likelihood of future adjustments and an asymmetry in oil shock effects. Supply shocks reduce the probability of fiscal adjustments, while demand shocks increase it. Furthermore, the impact of these shocks depends on several factors. Oil demand shocks positively impact fiscal adjustment even during downturns, providing a stabilizing effect. Net oil exporters are more affected by oil shocks than importers, experiencing more significant negative effects from supply shocks and more benefits from demand shocks. Fiscal institutions play a critical role in mitigating the volatility induced by oil shocks, with fiscal rules targeting primary or structural balances proving particularly effective.</div></div>","PeriodicalId":11665,"journal":{"name":"Energy Economics","volume":"144 ","pages":"Article 108395"},"PeriodicalIF":13.6,"publicationDate":"2025-03-13","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143677614","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}