Energy Economics最新文献

{"title":"Coal-fired peak regulation for integrating photovoltaic and wind power: Impact analysis and optimization of capacity tariff","authors":"Min Wang ,&nbsp;Chunhai Jiang","doi":"10.1016/j.eneco.2026.109158","DOIUrl":"10.1016/j.eneco.2026.109158","url":null,"abstract":"<div><div>The large-scale development and utilization of green electricity, particularly photovoltaic (PV) and wind power, is a key pathway for China's energy system to achieve low-carbon transition. However, the inherent intermittency and instability of PV and wind power pose significant challenges to the stable operation of the power system. Coal-fired utilization hours decreased from 5876 h in 2005 to 4476 h in 2023(−23.8%). This study designs a quasi-natural experiment based on China's policies for integrating PV and wind power into the grid. Using intensity-based DID methods at both the provincial coal-fired power macro level and the coal-fired power enterprise micro level, we examine the impact of PV and wind power integration on the utilization efficiency of coal-fired power equipment. The results indicate that the integration of PV and wind power significantly reduces the utilization levels of coal-fired power units. Mechanism analysis reveals that PV and wind power substantially substitute for coal-fired power while also exhibiting complementary effects. Heterogeneity analysis shows that the negative impact of PV and wind power integration on coal-fired power is stronger in provinces/regions with higher wind power potential relative to total PV and wind power potential, higher electricity supply rates, slower progress in the transformation and upgrading of coal-fired power, and lower levels of economic development. Further analysis indicates that large-scale coal-fired power enterprises, leveraging cost synergies, are more actively participating in the integration of PV and wind power. Finally, this study develops an optimization model for coal-fired power capacity tariffs based on the coefficient of variation method, enabling province- and region-level differentiation in the adjustment of current capacity tariffs. This study provides empirical evidence and reference solutions to alleviate green electricity integration pressures and accelerate the construction of a new energy system.</div></div>","PeriodicalId":11665,"journal":{"name":"Energy Economics","volume":"155 ","pages":"Article 109158"},"PeriodicalIF":14.2,"publicationDate":"2026-03-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"146032778","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}

{"title":"Fuel subsidy removal and monetary policy adjustments in an oil-producing emerging economy","authors":"Junior Maih ,&nbsp;Babatunde S. Omotosho ,&nbsp;Bo Yang","doi":"10.1016/j.eneco.2026.109208","DOIUrl":"10.1016/j.eneco.2026.109208","url":null,"abstract":"<div><div>This paper examines the implications of fuel subsidy removal in an oil-producing economy, focusing on the central bank’s response to volatile oil prices. Using a Markov-switching dynamic stochastic general equilibrium (DSGE) model, we analyze the welfare effects of this policy change under different regimes of oil price volatility and monetary policy. Our empirical findings, based on data from Nigeria (2000:2–2021:4), reveal time-varying switches in oil price fluctuations and monetary policy adjustments that synchronize with states of high oil price volatility. We also find that subsidy removal has welfare-reducing and heterogeneous effects on households, especially when implemented in an environment of heightened volatility. The efficacy of monetary policy in mitigating the impacts of subsidy removal depends on the ability of the central bank to design a flexible framework capable of adapting to economic shifts, while balancing its stabilization objectives. Furthermore, the observed policy switching in response to different states of oil price shocks suggests a need for the central banks of oil-producing emerging economies to consider the prospects of a dual-mandate regime.</div></div>","PeriodicalId":11665,"journal":{"name":"Energy Economics","volume":"156 ","pages":"Article 109208"},"PeriodicalIF":14.2,"publicationDate":"2026-03-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"147278914","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}

{"title":"Environmental regulation and energy poverty: Straw-burning bans in China","authors":"Peng Xu ,&nbsp;Rohan Best ,&nbsp;Pundarik Mukhopadhaya","doi":"10.1016/j.eneco.2026.109217","DOIUrl":"10.1016/j.eneco.2026.109217","url":null,"abstract":"<div><div>This research uses data from the China Family Panel Study (CFPS) (2014–2020) to explore the impact of the straw-burning-ban policy on household energy poverty. Two dimensions of energy poverty are investigated: energy affordability, and energy transition (toward cleaner energy). Correspondingly, the Low-Income High-Cost (LIHC) method and energy cleanliness are adopted to depict the energy poverty of households. Our findings indicate the presence of heterogeneous effects from the straw-burning-ban policy on energy affordability and energy transition among rural Chinese households. We find that the policy has an adverse influence on energy affordability, while it contributes to a clean energy transition. Mechanism studies reveal that, although the policy does not significantly affect income or agricultural costs for rural households, it substantially increases their energy expenditures. The results also show some medium-term persistence through dynamic policy effects. Furthermore, this research holds practical significance for developing countries by aiding policymakers in better balancing environmental regulation with the livelihoods of households.</div></div>","PeriodicalId":11665,"journal":{"name":"Energy Economics","volume":"156 ","pages":"Article 109217"},"PeriodicalIF":14.2,"publicationDate":"2026-03-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"147412544","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}

{"title":"Climate change and corporate financialization: International evidence","authors":"Yongji Zhang ,&nbsp;Yankai Zhang ,&nbsp;Ke Wang","doi":"10.1016/j.eneco.2026.109149","DOIUrl":"10.1016/j.eneco.2026.109149","url":null,"abstract":"<div><div>Climate change is a critical global challenge, intensifying risks and influencing corporate financial behavior. Employing a high-dimensional fixed-effects model on a panel dataset of 11,167 firms across 59 countries, the study finds that climate change acts as a significant catalyst for corporate financialization, compelling firms to increase their allocation of capital to financial assets. This effect, robust under various checks, operates via two mechanisms: climate change exacerbates financing constraints, prompting firms to accumulate liquid assets for precautionary motives, and it dampens the efficiency of real investments, driving a strategic reallocation of capital toward financial assets as a form of investment substitution. Heterogeneity is evident in relation to energy vulnerability, digitalization, industrial structure, carbon emission intensity, and Islamic countries. Furthermore, increased financialization leads to elevated dividend payouts. Adopting a global perspective, this study fills a critical gap, providing empirical evidence on firms’ strategic financial adaptation to climate change. It contributes to academic discourse and offers practical implications for policymakers and corporates.</div></div>","PeriodicalId":11665,"journal":{"name":"Energy Economics","volume":"155 ","pages":"Article 109149"},"PeriodicalIF":14.2,"publicationDate":"2026-03-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"146135462","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}

{"title":"Clean energy-based rural domestic energy use transformation: A tripartite evolutionary game model analysis","authors":"Huiqiao Wang,&nbsp;Mingming Zhang","doi":"10.1016/j.eneco.2026.109155","DOIUrl":"10.1016/j.eneco.2026.109155","url":null,"abstract":"<div><div>In the context of China’s dual carbon goals and the continuously rising demand for domestic energy consumption among rural residents, accelerating the transformation of rural household energy use is essential for achieving carbon reduction targets and advancing rural domestic energy transition. With rapid urbanization, rural population outflows and shrinking village sizes have significantly undermined the economic viability of relying solely on large-scale energy infrastructure investments, such as extending natural gas pipeline networks, to meet rural energy needs. Against this backdrop, biomethane, as a renewable energy source, has emerged as a promising solution for rural domestic energy transition. However, the production, deployment, and utilization of biomethane involve multiple stakeholders. Consequently, the effectiveness of biomethane based rural clean energy transition critically depends on coordinated interactions among multiple stakeholders and their dynamic strategic choices over time.</div><div>This study employs a tripartite evolutionary game model involving local government, local farmers, and energy enterprises to examine the dynamic choice mechanisms and the conditions under which stable cooperative outcomes can be achieved in transition process. Numerical simulations and sensitivity analyses are conducted to explore how initial participation willingness, subsidy levels, and different policy instruments influence stakeholders’ strategic choices and cooperative outcomes. The results indicate that higher initial willingness among stakeholders significantly accelerates convergence toward stable tripartite cooperation. Subsidies play a critical role in inducing farmers’ adoption of clean energy, particularly in the early stages of transition, whereas targeted policy support is more effective in promoting the participation of energy enterprises. Moreover, policy effects materialize gradually over time, highlighting the importance of policy continuity for sustaining cooperative outcomes. Targeted policy support combined with subsidies is especially important for encouraging biomethane adoption among low-income farmers with limited environmental and health awareness.</div><div>These findings suggest that governments should strengthen environmental and health awareness campaigns, provide institutional support and a favorable business environment for the deployment of biomethane projects by energy enterprises, and combine financial subsidies with targeted institutional policy measures, while emphasizing long-term policy consistency.</div></div>","PeriodicalId":11665,"journal":{"name":"Energy Economics","volume":"155 ","pages":"Article 109155"},"PeriodicalIF":14.2,"publicationDate":"2026-03-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"146089529","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}

{"title":"Do severe storms affect air quality in high-population urban centers? Evidence from extreme weather events in Texas","authors":"Felipe Gomez-Trejos,&nbsp;Qinzheng Xu,&nbsp;Jordan Lopez","doi":"10.1016/j.eneco.2026.109191","DOIUrl":"10.1016/j.eneco.2026.109191","url":null,"abstract":"<div><div>We construct a high-frequency, hourly panel of generation and emissions for the universe of power-generating units in ERCOT, matched to plant-specific attributes, daily pollution concentration readings from the population of outdoor ambient monitors, and combined with quasi-experimental variation from all officially declared severe storm episodes in Texas over 2020–2024. Controlling for hour-of-day and day-of-week relative to storm timing, severe storms lead to substantial and persistent declines in generation from wind and solar facilities. These intermittent generation disruptions are mitigated by increases in output from coal and natural gas plants via sharp spikes in electricity prices and further amplified by elevated electricity demand during storm periods. Such energy mix reallocation results in statistically and economically significant increases in urban NO₂ and PM_2.5 pollution concentrations, with plant-level emissions of NO_x and <span><math><msub><mrow><mtext>SO</mtext></mrow><mrow><mn>2</mn></mrow></msub></math></span> increasing by over 50% at fossil-fueled plants located in or near Texas’s major metro areas during hour-day periods when storm impacts are most acute.</div></div>","PeriodicalId":11665,"journal":{"name":"Energy Economics","volume":"155 ","pages":"Article 109191"},"PeriodicalIF":14.2,"publicationDate":"2026-03-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"146146419","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}

{"title":"Does global value chain participation reduce energy resilience? Evidence from China","authors":"Jing Lan ,&nbsp;Yansong Shi ,&nbsp;Xiaochun Xu ,&nbsp;Feng Wang","doi":"10.1016/j.eneco.2026.109219","DOIUrl":"10.1016/j.eneco.2026.109219","url":null,"abstract":"<div><div>Based on data from China's A-share listed companies (2001−2023), this study examines how global value chain (GVC) embeddedness and upgrading affect enterprise energy resilience. The results show that both GVC embeddedness and upgrading significantly inhibit energy resilience, revealing a trade-off between efficiency gains and energy security. Heterogeneity analysis indicates distinct patterns: capital-intensive enterprises are mainly affected by embeddedness, while state-owned, heavily polluting, and labor-intensive enterprises are more vulnerable during upgrading. Other enterprises face dual suppression from both dimensions. Mechanism tests identify three pathways: scale contraction and technological suppression (common to both), plus relational lock-in (specific to upgrading). These findings demonstrate that Chinese enterprises face a severe efficiency-security trade-off in GVC participation, calling for a policy shift from an efficiency-first approach to a security-efficiency balance through coordinated management of three key relationships.</div></div>","PeriodicalId":11665,"journal":{"name":"Energy Economics","volume":"155 ","pages":"Article 109219"},"PeriodicalIF":14.2,"publicationDate":"2026-03-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"147385617","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}

{"title":"Decomposing return and volatility connectedness in Northwest European natural gas markets: Evidence from the R2 connectedness approach","authors":"Markos Farag ,&nbsp;Oliver Ruhnau","doi":"10.1016/j.eneco.2025.109115","DOIUrl":"10.1016/j.eneco.2025.109115","url":null,"abstract":"<div><div>Regulatory reforms by the European Commission have facilitated the integration of European natural gas markets, thereby increasing their mutual interdependence in terms of prices and associated risks. Recent external shocks, including the COVID-19 pandemic and the Russian invasion of Ukraine, have disrupted market interconnectedness, as documented in the literature. However, the nature of shock transmission, whether contemporaneous or delayed, during periods of market instability, the subsequent speed of recovery in price and volatility connectedness, and the potential differences between spot and futures prices have not yet been investigated. This paper addresses these issues in two steps. First, it quantifies the dynamics of return and volatility connectedness among Northwest European gas hubs using the <span><math><msup><mrow><mi>R</mi></mrow><mrow><mn>2</mn></mrow></msup></math></span> decomposition connectedness method. Second, it explains these dynamics by linking fluctuations in connectedness to physical, policy, and macroeconomic factors using a regression-based framework. Our findings show that contemporaneous spillovers dominate lagged spillovers, even during external shocks, indicating rapid market adjustments. Moreover, while market connectedness declined significantly during major disruptions, it promptly returned to pre-crisis levels once these disruptions subsided. Futures markets showed higher connectedness than spot markets during tight conditions, suggesting greater alignment with broader market expectations and reduced susceptibility to physical constraints. Furthermore, regression analysis indicates that return and volatility connectedness decline significantly when certain pipelines are congested, whereas congestion on other links has no clear effect.</div></div>","PeriodicalId":11665,"journal":{"name":"Energy Economics","volume":"154 ","pages":"Article 109115"},"PeriodicalIF":14.2,"publicationDate":"2026-02-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145895702","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}

{"title":"Measuring energy resilience via risk absorption: High-frequency evidence from China","authors":"Liangpeng Wu ,&nbsp;Xinlei Feng ,&nbsp;Xiaoyong Zhou ,&nbsp;Qingyuan Zhu ,&nbsp;Dequn Zhou","doi":"10.1016/j.eneco.2025.109117","DOIUrl":"10.1016/j.eneco.2025.109117","url":null,"abstract":"<div><div>Energy markets face intensifying shocks, making a real-time measure of energy resilience essential. Conventional low-frequency metrics miss short-run dynamics and the risk-absorption capacity of the energy system. This study proposes a methodological framework to assess energy resilience through risk-absorption by (i) integrating mixed-frequency indicators into an energy system index (ESI) via a dynamic factor model, (ii) proxying systemic financial stress with marginal expected shortfall, and (iii) tracing the ESI's impulse response to risk shocks using a time-varying parameter VAR with stochastic volatility. This approach captures high-frequency dynamics, accommodates evolving transmission mechanisms, and yields two interpretable risk-absorption measures: energy resilience intensity (ERi) and energy resilience duration (ERd). For China during 2009–2022, the results show that energy resilience stabilized overall and was shaped mainly by risks stemming from external financing dependence (international financial markets) and capital-price transmission (stock markets). ERd and ERi display a clear dual-regime pattern, with both regimes exhibiting strong self-sustaining persistence. Four pronounced fluctuations—2010–2011, 2014–2015, 2017–2018, and 2020–2022—correspond to surges in geopolitical risk (GPR), trade policy uncertainty (TPU), and climate risks. Empirically, TPU exerts a dual effect on energy resilience by shortening ERd while reducing ERi, whereas geopolitical and climate risks mainly prolong recovery processes (increasing ERd) without significantly weakening systemic stability (ERi). In addition, domestic emergencies such as campaign-based decarbonization also exert an impact on ERd. This study provides a dynamic, high-frequency measurement framework and clarifies the differential roles of geopolitical, trade, and climate risks in shaping energy resilience across risk-absorption intensity and duration.</div></div>","PeriodicalId":11665,"journal":{"name":"Energy Economics","volume":"154 ","pages":"Article 109117"},"PeriodicalIF":14.2,"publicationDate":"2026-02-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145939742","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}

{"title":"Assessing the effect of climate policy uncertainty on corporate carbon cost leadership strategy: Evidence from China","authors":"Zhongzhu Chu ,&nbsp;Weijie Tan ,&nbsp;Boru Ren ,&nbsp;Zhiyi Xia","doi":"10.1016/j.eneco.2025.109118","DOIUrl":"10.1016/j.eneco.2025.109118","url":null,"abstract":"<div><div>Frequent extreme climate events have heightened climate policy uncertainty (CPU) and incorporating the social cost of carbon has become a key element for countries seeking to improve their institutions in response to climate risks. Focusing on corporate efforts, this study innovatively constructs a carbon cost leadership strategy (CCLS) index for Chinese listed companies from 2010 to 2024 using a text-based machine learning approach. Drawing on institutional theory, we examine the relationship between CPU and firms' adoption of CCLS. Our findings indicate that CPU significantly inhibits the implementation of CCLS, primarily because CPU increases firms' operational risks and undermines firms' capacity to respond to climate regulations. Heterogeneity analysis reveals that this negative effect is more pronounced for state-owned enterprises, firms with low climate risk perception, those in low carbon-exposure and non-technology-intensive industries, and firms located in regions with weak public–government climate engagement. This study enriches the understanding of the social impacts of climate policy from the perspective of corporate carbon cost management and provides new insights for emerging economies to improve their social cost of carbon assessment systems and enhance firms' climate response capabilities.</div></div>","PeriodicalId":11665,"journal":{"name":"Energy Economics","volume":"154 ","pages":"Article 109118"},"PeriodicalIF":14.2,"publicationDate":"2026-02-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145939743","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}