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Special Issue "Energy Markets and Economics"

A special issue of Energies (ISSN 1996-1073).

Deadline for manuscript submissions: 30 November 2018

Special Issue Editor

Guest Editor
Assoc. Prof. Dr. Seema Narayan

School of Economics, Finance and Marketing, RMIT University, Melbourne VIC 3000, Australia
Website | E-Mail
Interests: international finance and trade energy markets; energy markets; time series and panel econometrics

Special Issue Information

Dear Colleagues,

This is a call for papers for a Special Issue on “Energy Markets and Economics”. Over the last 50 years or so, an enormous amount of work has gone into explaining the economic implications of energy markets, with a focus on crude oil or aggregate energy consumption. This issue aims to bring together papers that provide economic insights into the modern energy market, which is still dominated by crude oil but has expanded to incorporate new energy sources in the form of coal, natural gas, and a mixture of renewable energy sources. Given the differences in the dynamics at play with different energy sources, particularly in relation to price determination, the impact they have on the environment, their importance in the energy mix and energy policy, and so forth, it becomes imperative to check their behavior using economic models.

The broad topics of interest to the Special Issue include, but are not limited to, the following:

  • Do renewable and non-renewable energy consumption lead to differing behavior in economic variables?
  • Does one need to consider the different energy mix when explaining the economic implications of energy markets?
  • Do energy prices co-move?
  • Can energy prices explain the exchange rate movements?
  • How persistent are energy shocks, and do they differ depending on different energy mix? How sensitive are other components of economic growth to energy markets?
Assoc. Prof. Dr. Seema Narayan
Guest Editor

Manuscript Submission Information

Manuscripts should be submitted online at www.mdpi.com by registering and logging in to this website. Once you are registered, click here to go to the submission form. Manuscripts can be submitted until the deadline. All papers will be peer-reviewed. Accepted papers will be published continuously in the journal (as soon as accepted) and will be listed together on the special issue website. Research articles, review articles as well as short communications are invited. For planned papers, a title and short abstract (about 100 words) can be sent to the Editorial Office for announcement on this website.

Submitted manuscripts should not have been published previously, nor be under consideration for publication elsewhere (except conference proceedings papers). All manuscripts are thoroughly refereed through a single-blind peer-review process. A guide for authors and other relevant information for submission of manuscripts is available on the Instructions for Authors page. Energies is an international peer-reviewed open access monthly journal published by MDPI.

Please visit the Instructions for Authors page before submitting a manuscript. The Article Processing Charge (APC) for publication in this open access journal is 1600 CHF (Swiss Francs). Submitted papers should be well formatted and use good English. Authors may use MDPI's English editing service prior to publication or during author revisions.

Keywords

  • energy mix
  • renewables
  • non-renewables
  • economic growth
  • trade
  • exchange rate

Published Papers (7 papers)

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Research

Open AccessArticle Modelling the Dynamics of Fuel and EU Allowance Prices during Phase 3 of the EU ETS
Energies 2018, 11(11), 3148; https://doi.org/10.3390/en11113148
Received: 4 October 2018 / Revised: 5 November 2018 / Accepted: 9 November 2018 / Published: 14 November 2018
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Abstract
This article studies the relationship between the prices of fuel and EU Allowances (EUA) for carbon emissions during Phase 3 of the European Union Emissions Trading System. We find that the forward prices of EUA, coal, gas and Brent oil are jointly determined
[...] Read more.
This article studies the relationship between the prices of fuel and EU Allowances (EUA) for carbon emissions during Phase 3 of the European Union Emissions Trading System. We find that the forward prices of EUA, coal, gas and Brent oil are jointly determined in equilibrium. The existence of such a long-run relationship entails a permanent-transitory decomposition for the series of EUA and fuel prices that reveals the short- and long-term causal influence of the EUA market in shaping the joint dynamics of fuel prices. This result complements the literature that suggests that EUA prices are driven by the dynamics of fuel prices. Interestingly, we do not find an equilibrium relationship in the spot market. EUA and fuel spot prices are driven by independent unit root processes. The differences between spot and forward markets are attributed to the tradability of forward prices that are used for speculation and hedging in financial markets. In contrast, spot prices are mainly driven by supply and demand in energy markets. Full article
(This article belongs to the Special Issue Energy Markets and Economics)
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Open AccessArticle Asymmetric Impacts of Oil Price on Inflation: An Empirical Study of African OPEC Member Countries
Energies 2018, 11(11), 3017; https://doi.org/10.3390/en11113017
Received: 14 August 2018 / Revised: 15 October 2018 / Accepted: 26 October 2018 / Published: 2 November 2018
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Abstract
This study investigates the asymmetric impacts of oil price changes on inflation in Algeria, Angola, Libya, and Nigeria. Three different kinds of oil price data were applied in this study: the actual spot oil price of individual countries, the OPEC reference basket oil
[...] Read more.
This study investigates the asymmetric impacts of oil price changes on inflation in Algeria, Angola, Libya, and Nigeria. Three different kinds of oil price data were applied in this study: the actual spot oil price of individual countries, the OPEC reference basket oil price, and an average of the Brent, WTI, and Dubai oil price. Autoregressive distributed lag (ARDL) dynamic panels were used to estimate the short- and long-term impacts. Also, we partitioned the oil price into positive and negative changes to capture asymmetric impacts and found that both the positive and negative oil price changes positively influenced inflation. However, the impact was found to be more significant when the oil prices dropped. We also found that the money supply, the exchange rate, and the gross domestic product (GDP) are positively related to inflation, while food production is negatively related to inflation. Accordingly, policy-makers should be cautious when formulating policies between the positive and negative changes in oil prices, as it was shown that inflation increased when the oil price dropped. Additionally, the use of a contractionary monetary policy would help to reduce the inflation rate. Lastly, we suggest that the government should encourage domestic food production, both in quantity and quality, to reduce inflation. Full article
(This article belongs to the Special Issue Energy Markets and Economics)
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Open AccessArticle Oil Prices and Global Stock Markets: A Time-Varying Causality-In-Mean and Causality-in-Variance Analysis
Energies 2018, 11(10), 2848; https://doi.org/10.3390/en11102848
Received: 12 August 2018 / Revised: 15 October 2018 / Accepted: 16 October 2018 / Published: 21 October 2018
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Abstract
This study examines the Granger-causal relationships between oil price movements and global stock returns by using time-varying Granger-causality tests in mean and in variance. We use the daily returns from Morgan Stanley Capital International (MSCI) G7 and the MSCI Emerging Stock Market Indexes
[...] Read more.
This study examines the Granger-causal relationships between oil price movements and global stock returns by using time-varying Granger-causality tests in mean and in variance. We use the daily returns from Morgan Stanley Capital International (MSCI) G7 and the MSCI Emerging Stock Market Indexes to distinguish between the effects of daily oil price movements on G7 countries’ and emerging market countries’ stock markets. We further divide the emerging markets into two groups as oil-exporting and oil-importing countries. For the oil market, we use both the West Texas Intermediate (WTI) and Brent oil daily price movements. While the Granger-causality-in-mean tests indicate a causal link from WTI oil prices and G7 countries’ stock returns to MSCI emerging countries’ stock returns, the Granger-causality-in-variance tests suggest no causal link from global oil market prices to stock market returns. Nonetheless, a causal link from the G7 countries’ stock returns to the MSCI emerging countries’ stock returns is detected. In addition, G7 countries’ stock market volatility is found to Granger-cause Brent oil price volatility. The time-varying Granger-causality-in-mean and Granger-causality-in-variance tests present new and further insights. A causal relationship between oil price changes and G7 countries’ stock returns is found for some periods during and after the global financial crisis. Time-varying Granger-causality-in-variance test results indicate evidence of causal linkages among oil prices and global stock market returns that are specific only to certain time periods. We also find that there might be a difference between the movements in Brent and WTI oil prices with respect to their Granger-causal effects on oil-importing emerging markets’ stock returns—especially after the global financial crisis. Our results provide further evidence that the effects of oil price movements on stock returns might be different depending on the volatility in the stock markets. Full article
(This article belongs to the Special Issue Energy Markets and Economics)
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Open AccessArticle The Good, the Bad and the Uncertain: Bioenergy Use in the European Union
Energies 2018, 11(10), 2703; https://doi.org/10.3390/en11102703
Received: 23 July 2018 / Revised: 24 September 2018 / Accepted: 7 October 2018 / Published: 11 October 2018
Cited by 1 | PDF Full-text (813 KB) | HTML Full-text | XML Full-text
Abstract
As the EU is moving towards a low carbon economy and seeks to further develop its renewable energy policy, this paper quantitatively investigates the impact of plausible energy market reforms from the perspective of bio-renewables. Employing a state-of-the-art biobased variant of a computable
[...] Read more.
As the EU is moving towards a low carbon economy and seeks to further develop its renewable energy policy, this paper quantitatively investigates the impact of plausible energy market reforms from the perspective of bio-renewables. Employing a state-of-the-art biobased variant of a computable general equilibrium model, this study assesses the perceived medium-term benefits, risks and trade-offs which arise from an advanced biofuels plan, two exploratory scenarios of a more ‘sustainable’ conventional biofuels plan and a ‘no-mandate’ scenario. Consistent with more recent studies, none of the scenarios considered present significant challenges to EU food-security or agricultural land usage. An illustrative advanced biofuels plan simulation requires non-trivial public support to implement whilst a degree of competition for biomass with (high-value) advanced biomass material industries is observed. On the other hand, it significantly alleviates land use pressures, whilst lignocellulose biomass prices are not expected to increase to unsustainable levels. Clearly, these observations are subject to assumptions on technological change, sustainable biomass limits, expected trends in fossil fuel prices and EU access to third-country trade. With these same caveats in mind, the switch to increased bioethanol production does not result in significant market tensions in biomass markets. Full article
(This article belongs to the Special Issue Energy Markets and Economics)
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Open AccessArticle Total Cost of Ownership Based Economic Analysis of Diesel, CNG and Electric Bus Concepts for the Public Transport in Istanbul City
Energies 2018, 11(9), 2369; https://doi.org/10.3390/en11092369
Received: 3 August 2018 / Revised: 31 August 2018 / Accepted: 3 September 2018 / Published: 7 September 2018
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Abstract
As across the world, in Turkey, several studies have been carried out by local government to use sustainable and 100% zero-emission public transport following increased public awareness. Increasing greenhouse gas emissions (GHG) due to transportation systems in the world make it necessary to
[...] Read more.
As across the world, in Turkey, several studies have been carried out by local government to use sustainable and 100% zero-emission public transport following increased public awareness. Increasing greenhouse gas emissions (GHG) due to transportation systems in the world make it necessary to establish “zero-emission sustainable transportation systems” in Turkey. In this study, an economic analysis based on actual field data is presented for Istanbul Electricity, Tramway and Tunnel General Management (IETT) to seek the suitability of an electric bus concept for Istanbul conditions. For this purpose, a dynamic model based on the Total Cost of Ownership (TCO) from well to wheel has been proposed for the three groups of transportation, namely diesel, CNG (compressed natural gas) and electric buses. The data source used in the proposed approach is created by performing actual field performance tests for diesel, CNG and electric buses under real Istanbul road, time, and trip conditions. Afterwards, the Net Present Value (NPV), Internal Rate of Return (IRR), and Payback Period (PB) methods considering TCO values and updated unit prices are carried out for the investment versus profitability analyses to compare the different public bus concepts. The results show that the electric bus concept with a charging station depot achieving sustainable and zero-emission goals will be the driving force to advance the electric bus concept for Istanbul Public Transport. Full article
(This article belongs to the Special Issue Energy Markets and Economics)
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Open AccessArticle The Effect of Renewable Energy Generation on the Electric Power Spot Price of the Japan Electric Power Exchange
Energies 2018, 11(9), 2215; https://doi.org/10.3390/en11092215
Received: 29 July 2018 / Revised: 19 August 2018 / Accepted: 23 August 2018 / Published: 24 August 2018
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Abstract
This study aims to explore the relationship between renewable energies and the electric power spot price of the Japan Electric Power Exchange (JEPX). By using panel data analysis and proxy modeling, this work attempts to estimate how renewable energies (displayed through the proxies)
[...] Read more.
This study aims to explore the relationship between renewable energies and the electric power spot price of the Japan Electric Power Exchange (JEPX). By using panel data analysis and proxy modeling, this work attempts to estimate how renewable energies (displayed through the proxies) and other factors influence the electric power spot price in Japan. Based on an analysis of the estimations, some policy implications have been proposed, such as to incorporate weather information into the price forecast, or to provide a guide to more effectively transact on the JEPX. Full article
(This article belongs to the Special Issue Energy Markets and Economics)
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Open AccessArticle Economic Exposure to Oil Price Shocks and the Fragility of Oil-Exporting Countries
Energies 2018, 11(4), 827; https://doi.org/10.3390/en11040827
Received: 7 March 2018 / Revised: 23 March 2018 / Accepted: 28 March 2018 / Published: 3 April 2018
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Abstract
From a price range between 100 and 120 USD (U.S. dollars) per barrel in 2011–2014, the crude oil price fell from mid-2014 onwards, reaching a level of 26 USD per barrel in January 2016. Here we assess the economic consequences of this strong
[...] Read more.
From a price range between 100 and 120 USD (U.S. dollars) per barrel in 2011–2014, the crude oil price fell from mid-2014 onwards, reaching a level of 26 USD per barrel in January 2016. Here we assess the economic consequences of this strong decrease in the oil price. A retrospective analysis based on data of the past 25 years sheds light on the vulnerability of oil-producing regions to the oil price volatility. Gross domestic product (GDP) and government revenues in many Gulf countries exhibit a strong dependence on oil, while more diversified economies improve resilience to oil price shocks. The lack of a sovereign wealth fund, in combination with limited oil reserves, makes parts of Sub-Saharan Africa particularly vulnerable to sustained periods of low oil prices. Next, we estimate the macroeconomic impacts of a 60% oil price drop for all regions in the world. A numerical simulation yields a global GDP increase of roughly 1% and illustrates how the regional impact on GDP relates to oil export dependence. Finally, we reflect on the broader implications (such as migration flows) of macroeconomic responses to oil prices and look ahead to the challenge of structural change in a world committed to limiting global warming. Full article
(This article belongs to the Special Issue Energy Markets and Economics)
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Planned Papers

The below list represents only planned manuscripts. Some of these manuscripts have not been received by the Editorial Office yet. Papers submitted to MDPI journals are subject to peer-review.

Title: Option value of renewable incentives under different support systems.
Authors: Maria Paz Espinosa, Andrea Giralt, Cristina Pizarro-Irizar
Abstract: Regulation on renewable energy promotion in Spain has proven to be very effective in delivering renewable capacity, but the economic efficiency of this regulation has been put into question. In this paper we analyze to what extent the incentive scheme has transferred all the risk to the system and conventional producers. Those incentives were based on a feed in tariff system from 2004 until 2013 and on a new regulatory scheme based on the returns to investment and operation of the plant from 2014 onwards. Using option price theory we evaluate the impact of this regulation on the distribution of risk and compute the value of the incentives provided.
Keywords: electricity market, energy policy, real option theory, renewable energy
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