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Special Issue "Energy Markets and Economics Ⅱ"

A special issue of Energies (ISSN 1996-1073). This special issue belongs to the section "I: Energy Economics and Policy".

Deadline for manuscript submissions: closed (31 January 2020) | Viewed by 13879

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A printed edition of this Special Issue is available here.

Special Issue Editor

Dr. Seema Narayan
E-Mail Website
Guest Editor
School of Economics, Finance and Marketing, RMIT University, Melbourne, VIC 3000, Australia
Interests: international finance and trade energy markets; energy markets; time series and panel econometrics
Special Issues, Collections and Topics in MDPI journals

Special Issue Information

Dear Colleagues,

Given the success of the Special Issue on “Energy markets and Economics”, we are pleased to announce the second call for papers for the Special Issue.

Over the last 50 years or so, significant 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:

  • Does renewable and nonrenewable 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?
  • Is renewable energy disruptive?

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 submissions that pass pre-check are 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 semimonthly 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 2200 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 (10 papers)

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Research

Article
Time-Varying Influences of Oil-Producing Countries on Global Oil Price
Energies 2020, 13(6), 1404; https://doi.org/10.3390/en13061404 - 17 Mar 2020
Cited by 2 | Viewed by 1144
Abstract
This paper aims to investigate the time-varying influences of major crude oil-producing countries on Brent oil prices, with seven-panel data over the observation years of 1998 to 2018. We create seven panels with 36 monthly data for each and estimate the contributions of [...] Read more.
This paper aims to investigate the time-varying influences of major crude oil-producing countries on Brent oil prices, with seven-panel data over the observation years of 1998 to 2018. We create seven panels with 36 monthly data for each and estimate the contributions of individual producing countries to oil price changes with a multivariate regression technique of ordinary least squares. Most existing researches have focused on identifying relationships among oil price, market fundamental factors, macroeconomic variables, and geopolitical events in broad perspectives. However, this paper undertakes a longitude/panel analysis of nine oil producers’ influences, with the Organisation for Economic Co-operation and Development (OECD) consumption and the U.S. Dollar Index (USDX) on oil prices in each panel and intends to identify which producers have statistically significant influencing weights on oil prices. We believe that this research contributes to the body of knowledge in better understanding the relative impacts of major oil-producing countries. Results show empirical evidences that the Organization of the Petroleum Exporting Countries (OPEC) production stayed as the greatest negative influence on the oil price in the periods of Panel 2 (2001–2003) and Panel 7 (2016–2018) only, while the U.S. Dollar Index took over the OPEC’s influencing role in most of the other periods, followed by Iran, the U.S., and China. Full article
(This article belongs to the Special Issue Energy Markets and Economics Ⅱ)
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Article
Do Real Output and Renewable Energy Consumption Affect CO2 Emissions? Evidence for Selected BRICS Countries
Energies 2020, 13(4), 960; https://doi.org/10.3390/en13040960 - 20 Feb 2020
Cited by 35 | Viewed by 1519
Abstract
Climate change is one of the most important global problems faced by the international community. It is generally believed that increasing the consumption of renewable energy is an effective measure to promote CO2 emissions reduction. Therefore, renewable energy consumption has become one [...] Read more.
Climate change is one of the most important global problems faced by the international community. It is generally believed that increasing the consumption of renewable energy is an effective measure to promote CO2 emissions reduction. Therefore, renewable energy consumption has become one of the best alternative strategies for sustainable development. Based on this, this paper employs the 3SLS model to conduct an empirical study on the relations among real output, renewable energy consumption, and CO2 emissions of BRICS countries (except Russia) in 1999–2014. The empirical results support, for BRICS group, the complete tri-variate relationships (energy-output-emission nexus), and renewable energy had a significant positive impact on the real output, and vice versa. Besides, compared with other countries, Brazil also has the same tri-variate relationships as BRICS group. However, China has no relationship from real output to renewable energy consumption and from real output to CO2 emissions; India does not have the relationship from real output to renewable energy consumption and the bilateral relationship between real output and CO2 emissions; the relationship between variables in South Africa only occurs in the energy output chain. Finally, according to the estimation results of the simultaneous equation, the BRICs governments should consider the importance of human capital level and financial development when controlling the real output level and pollution. In addition, it should be noted that effective energy policies help to reduce carbon dioxide emissions without compromising real output. Full article
(This article belongs to the Special Issue Energy Markets and Economics Ⅱ)
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Article
The Dynamic Impacts of Oil Price on China’s Natural Gas Consumption under the Change of Global Oil Market Patterns: An Analysis from the Perspective of Total Consumption and Structure
Energies 2020, 13(4), 867; https://doi.org/10.3390/en13040867 - 17 Feb 2020
Cited by 2 | Viewed by 875
Abstract
In recent years, China’s energy structure has been adjusted unceasingly, where the proportion of natural gas has been increasing year by year, and its external dependence has also been increasing. Therefore, it is necessary to discuss the correlation between China’s natural gas market [...] Read more.
In recent years, China’s energy structure has been adjusted unceasingly, where the proportion of natural gas has been increasing year by year, and its external dependence has also been increasing. Therefore, it is necessary to discuss the correlation between China’s natural gas market and the international energy market. This paper studies the dynamic relationship between China’s total natural gas consumption, consumption structure, and the international price of oil from the perspectives of mutation and time-variance, using the cointegration test with regime shifts and a state space model. The results show that during the global financial crisis in 2008, the cointegration relationship between China’s total natural gas consumption and the international oil price has undergone structural changes. January 2012 and March 2015 are potential structural mutation points. After the structural mutation, the impact of the international price of oil on China’s total natural gas consumption has weakened. From a structural point of view, urban gas and power generation gas have both been greatly affected by the change of oil price, while industrial gas and chemical gas are less affected. The conclusion here will provide an important empirical reference for optimizing the structure of natural gas consumption and maintaining energy security in China. Full article
(This article belongs to the Special Issue Energy Markets and Economics Ⅱ)
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Article
Causality Relationship Between Electricity Supply and Economic Growth: Evidence from Pakistan
Energies 2020, 13(4), 837; https://doi.org/10.3390/en13040837 - 14 Feb 2020
Cited by 18 | Viewed by 1305
Abstract
The long-term anticipation of electricity supply (ELS) and demand has supposed substantial prominence in the elementary investigation to offer sustainable resolutions to electricity matters. In this editorial, an outline of the organization of the electricity segment of Pakistan and analysis of historical supply [...] Read more.
The long-term anticipation of electricity supply (ELS) and demand has supposed substantial prominence in the elementary investigation to offer sustainable resolutions to electricity matters. In this editorial, an outline of the organization of the electricity segment of Pakistan and analysis of historical supply and demand statistics, an up-to-date position of the contrary set of energy plans is presented. The intention of this analysis is to explore the Granger causality relationship between electricity supply and economic growth (EG) by using a multivariate context with time series statistics covering 1990 to 2015 in Pakistan. Augmented dickey-fuller (ADF) and Philips-Perron (PP) unit root tests indicate that variables are non-stationary and integrated in a similar order (1). Our findings also reveal that variables economic growths (GDP), electricity supply (ELS), investment (INV), and export (EX) are co-integrated. The study also finds the Granger causality runs from EG to ELS deprived of any feedback effect. Therefore, the policy implications from our findings indicate that electricity preservation strategies may be implemented without any economic adverse impacts. Full article
(This article belongs to the Special Issue Energy Markets and Economics Ⅱ)
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Article
The Impact of Economic Growth, FDI and Energy Intensity on China’s Manufacturing Industry’s CO2 Emissions: An Empirical Study Based on the Fixed-Effect Panel Quantile Regression Model
Energies 2019, 12(24), 4800; https://doi.org/10.3390/en12244800 - 16 Dec 2019
Cited by 19 | Viewed by 1545
Abstract
Since the reform and opening-up, China’s CO2 emissions have increased dramatically, and it has become the world’s largest CO2 emission and primary energy consumption country. The manufacturing industry is one of the biggest contributors to CO2 emission, and determining the [...] Read more.
Since the reform and opening-up, China’s CO2 emissions have increased dramatically, and it has become the world’s largest CO2 emission and primary energy consumption country. The manufacturing industry is one of the biggest contributors to CO2 emission, and determining the drivers of CO2 emissions are essential for effective environmental policy. China is also a vast transition economy with great regional differences. Therefore, based on the data of China’s provincial panel from 2000 to 2013 and the improved STIRPAT model, this paper studies the impact of economic growth, foreign direct investment (FDI) and energy intensity on China’s manufacturing carbon emissions through the fixed-effect panel quantile regression model. The results show that the effects of economic growth, FDI and energy intensity on carbon emissions of the manufacturing industry are different in different levels and regions, and they have apparent heterogeneity. In particular, economic growth plays a decisive role in the CO2 emissions of the manufacturing industry. Economic growth has a positive impact on the carbon emissions of the manufacturing industry; specifically, a higher impact on high carbon emission provinces. Besides, FDI has a significant positive effect on the upper emission provinces of the manufacturing industry, which proves that there is a pollution paradise hypothesis in China’s manufacturing industry, but no halo effect hypothesis. The reduction of energy intensity does not have a positive effect on the reduction of carbon emissions. The higher impact of the energy intensity of upper emission provinces on carbon emissions from their manufacturing industry, shows that there is an energy rebound effect in China’s manufacturing industry. Finally, our study confirms that China’s manufacturing industry has considerable space for emission reduction. The results also provide policy recommendations for policymakers. Full article
(This article belongs to the Special Issue Energy Markets and Economics Ⅱ)
Article
Analyzing Oil Price Shocks and Exchange Rates Movements in Korea using Markov Regime-Switching Models
Energies 2019, 12(23), 4581; https://doi.org/10.3390/en12234581 - 01 Dec 2019
Cited by 2 | Viewed by 1148
Abstract
Korea imports all of its crude oil, and is the world's fifth largest oil importing country. We analyze the effects of oil prices, interest rates, consumer price indexes (CPIs), and industrial production indexes (IPIs) on the regime shift behavior of the Korean exchange [...] Read more.
Korea imports all of its crude oil, and is the world's fifth largest oil importing country. We analyze the effects of oil prices, interest rates, consumer price indexes (CPIs), and industrial production indexes (IPIs) on the regime shift behavior of the Korean exchange rates against the USA from January 1991 to March 2019. We use the Markov regime switching model (MRSM) to detect the regime shift behavior of the movements of Korean exchange rates. In order to select the optimal MRSM, we fit a total of 30 models considering four explanatory variables. The selected model based on Akaike information criteria (AIC) and maximum log likelihood (MLL) includes the log-differentials of oil prices, the log-differentials of CPIs compared to those of the US, and its own auto-regressive terms. Based on the selected MRSM model, throughout all markets, we find evidence to support the existence of two distinct regimes: a stable regime with low-volatility, and an unstable regime with high-volatility. The regime with high-volatility includes the Asian financial crisis of 1997 and the global financial crisis of 2008–2009 in the Korean exchange rates market. In the regime with low-volatility, the Korean exchange rates are not significantly influenced by any of the explanatory variables, except for its own auto-regressive terms. In the regime with high-volatility, the Korean exchange rates are significantly influenced by the CPIs and oil prices. The transition probability from the regime with low-volatility to the regime with high-volatility is about ten times that of the opposite case. Full article
(This article belongs to the Special Issue Energy Markets and Economics Ⅱ)
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Article
Economic Competitiveness Evaluation of the Energy Sources: Comparison between a Financial Model and Levelized Cost of Electricity Analysis
Energies 2019, 12(21), 4101; https://doi.org/10.3390/en12214101 - 27 Oct 2019
Cited by 8 | Viewed by 1463
Abstract
The levelized cost of electricity (LCOE) is used widely to compare the economic competitiveness of the energy mix. This method is easy to understand and simple to apply, which makes it preferable for many energy policymakers. However, the method has several disadvantages from [...] Read more.
The levelized cost of electricity (LCOE) is used widely to compare the economic competitiveness of the energy mix. This method is easy to understand and simple to apply, which makes it preferable for many energy policymakers. However, the method has several disadvantages from the energy business perspective. First, the LCOE approach does not consider revenue, and a high-interest rate usually correlates with the tariff growth rate. Thus, if a high-interest rate increases the cost, that high rate increases the revenue, which can affect economic competitiveness. Second, the LCOE does not consider different stakeholders. Equity investors and loan investors have different interests depending on different financial indicators, which influence the same energy sources’ differential economic attractiveness. This study analyzes and compares the LCOE, Project Internal Rate of Return (Project IRR), Equity Internal Rate of Return (Equity IRR), and Debt Service Coverage Ratio (DSCR) of an illustrative wind, coal, and nuclear power project using Monte-Carlo simulations. The results show that energy sources’ economic competitiveness can vary depending on financial indicators. This study will help energy policymakers develop more economically realistic energy portfolios. Full article
(This article belongs to the Special Issue Energy Markets and Economics Ⅱ)
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Article
The Oil Market Reactions to OPEC’s Announcements
Energies 2019, 12(17), 3238; https://doi.org/10.3390/en12173238 - 22 Aug 2019
Cited by 12 | Viewed by 1721
Abstract
Because of the crucial implications of the market power of OPEC, the aim of this paper was to investigate the oil asymmetric market reactions, such as the price and risk reactions, to OPEC’s announcements. Specifically, this paper first explored the oil price reactions [...] Read more.
Because of the crucial implications of the market power of OPEC, the aim of this paper was to investigate the oil asymmetric market reactions, such as the price and risk reactions, to OPEC’s announcements. Specifically, this paper first explored the oil price reactions to OPEC’s announcements and their heterogeneity to depict the directional role of OPEC based on event study methodology. Furthermore, this paper analyzed the oil risk reactions in the framework of a linear model. Our findings reveal several key results. The oil price reactions to OPEC production decisions behave quite heterogeneously in three kinds of decisions. Specifically, the reaction to announcements of a production increase shows an invert “U” shape, whereas there is a linear effect of cut announcements. Otherwise, when a maintain decision is announced, the oil prices have no obvious change over the sample period. Additionally, the oil risk reactions to OPEC’s announcements are heavily related to the interaction item between OPEC decisions and its production over full sample periods. Furthermore, OPEC’s role in promoting stability in crude oil markets by changing its production shows a heterogeneous condition after global financial crisis. Full article
(This article belongs to the Special Issue Energy Markets and Economics Ⅱ)
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Article
Design of Power Supply Package for Electricity Sales Companies Considering User Side Energy Storage Configuration
Energies 2019, 12(17), 3219; https://doi.org/10.3390/en12173219 - 21 Aug 2019
Cited by 5 | Viewed by 1068
Abstract
With the deepening of the reform of the power system, electricity sales companies are required to explore new business models and provide multi-faceted marketing programs for users. At the same time, with the reduction of energy storage (ES) costs and the gradual maturity [...] Read more.
With the deepening of the reform of the power system, electricity sales companies are required to explore new business models and provide multi-faceted marketing programs for users. At the same time, with the reduction of energy storage (ES) costs and the gradual maturity of technology, user side ES, especially Battery ES, has become an effective means for enhancing users’ power supply reliability and reducing electricity bills. Battery ES, as the standby power supply, has a vast user side application. The configuration of ES can help users to ameliorate power quality and reduce electricity cost. It is a critical strategy for electricity sales companies to improve their competitiveness as well. Firstly, this paper analyzes the user side ES and introduces the user side ES development status and relevant policies. Then, we establish an ES configuration optimization model based on the cost–benefit system. To determine the optimal ES capacity of the system’s storage capacity, non-dominated sorting genetic algorithm with elite strategy (NSGA-II) is used as the method solving model. Finally, according to the cost-effectiveness of ES and the period of a contract signed by users, a price package with ES configuration is designed for users to choose. Full article
(This article belongs to the Special Issue Energy Markets and Economics Ⅱ)
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Article
The Heterogeneous Interconnections between Supply or Demand Side and Oil Risks
Energies 2019, 12(11), 2226; https://doi.org/10.3390/en12112226 - 11 Jun 2019
Cited by 18 | Viewed by 1697
Abstract
Due to the crucial implication of oil risks for economic growth and policy making, the aim of this paper is to explore the heterogeneous interconnections of supply or demand in oil risks over time horizons and different countries. Specifically, we first examine the [...] Read more.
Due to the crucial implication of oil risks for economic growth and policy making, the aim of this paper is to explore the heterogeneous interconnections of supply or demand in oil risks over time horizons and different countries. Specifically, we first examine the correlation of supply or demand in oil return risks and show the relationships in different countries based on wavelet coherence. Furthermore, we explore the time-varying interconnections between supply- or demand-side and oil return risks, as well as oil producers and demand countries. The empirical results show that the correlation between supply and oil return risks is relatively stable, whereas the linkage between demand and oil return risks shows greater volatility due to the impact of specific events. Further study indicates that there are heterogeneous interconnections between supply- or demand-side and oil return risks over sample periods. Specifically, the sign of response could be divided into four phases, i.e., 1997–2002, 2002–2010, 2010–2013 and 2014–2018. In addition, the interconnections of the demand side could be divided into three phases due to the sign of it. What is more, the dynamic interconnections of oil producers’ or countries’ demands behave quite heterogeneously in different countries. Thus policymakers should focus on the coordination level and space capacity in the global crude oil market. Full article
(This article belongs to the Special Issue Energy Markets and Economics Ⅱ)
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