Implications of carbon price paths on energy security in four Baltic region countries

Galinis, Arvydas; Martišauskas, Linas; Jääskeläinen, Jaakko; Olkkonen, Ville; Syri, Sanna; Avgerinopoulos, Georgios; Lekavičius, Vidas

doi:10.1016/j.esr.2020.100509

Cited by 20 publications

(6 citation statements)

References 36 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Numerous definitions of energy security exist within the relevant literature, and variation in these definitions is attributed to country context (Zeng et al , 2017; Abdo and Kouhy, 2016; Yergin, 2006), multidimensionality and complexity (Alemzero et al , 2021; Galinis et al , 2020) and the proliferation of energy security indicators/indices (Galinis et al , 2020; Gasser, 2020; Kruyt et al , 2009). At this point, a few examples of the varied definitions seem appropriate.…”

Section: Literature Reviewmentioning

confidence: 99%

External energy security elements and the riskiness of clean energy stocks: a volatility analysis

Hassan¹

2023

SAMPJ

View full text Add to dashboard Cite

Purpose Clean energy stocks are exhibiting signs of increasing volatility reflecting the varied and conflicting strategies employed by nations to pursue energy security objectives. In this regard, this paper aims to examine the response of NASDAQ clean energy stock returns volatility to the influences of external energy security elements including oil price, natural gas price, coal price, carbon price and green information technology stock price. Design/methodology/approach The paper uses symmetric and asymmetric generalised autoregressive conditional heteroskedasticity models (GARCH and TGARCH, respectively), which incorporate external energy security elements as exogenous variables, to estimate volatility models for clean energy stock returns. Findings Although, prices of oil, coal and natural gas are negatively associated with NASDAQ clean energy returns volatility, only the effect of natural gas price is significant. While carbon price affects NASDAQ clean energy returns volatility positively, green information technology price affects the volatility negatively. These results are robust to exponential GARCH and lead-and-lag robust ordinary least-squares as alternative estimation methods. Research limitations/implications The study lumps the effects of all other external and internal factors, including internal energy security elements, in the autoregressive conditional heteroscedasticity (ARCH) term to predict NASDAQ clean energy returns conditional variance. GARCH method does not disentangle individual roles of the factors captured in the ARCH term in predicting volatility. Practical implications Results documented imply that natural gas appears a closer substitute for renewable energy sources than crude oil and coal, such that its price rise is perceived as good news in the NASDAQ clean energy financial market, while a fall is considered bad news. Furthermore, both an increase in carbon price and a decrease in green information technology stock performance are perceived as negative shocks. Social implications In assessing risks associated with clean energy stocks, investors and fund managers should carefully consider the effects of external energy security elements. Originality/value To the best of the author’s knowledge, the paper is the first to identify external energy security elements and examine their effects on clean energy stock volatility.

show abstract

Section: Literature Reviewmentioning

confidence: 99%

External energy security elements and the riskiness of clean energy stocks: a volatility analysis

Hassan¹

2023

SAMPJ

View full text Add to dashboard Cite

show abstract

“…The authors specifically derive seven key energy security themes1 from 83 energy security definitions. In this regard, Galinis et al (2020) and shaped to inform the for-mulation of energy policies in facilitating the provision of the needed energy supplies and services in an economy (Winzer 2012). In particular, our paper focuses on the relationship that may exist between such key elements of energy security as prices of fossil fuels (particularly, oil and gas), environmental sustainability and energy efficiency on the one hand, and clean energy stock price on the other hand.…”

Section: Energy Securitymentioning

confidence: 99%

“…To address these problems and ensure the attainment of optimal energy efficiency, many advanced economies formulate energy policies. Energy policies, mainly formulated at national level, are deliberate efforts put in place to strategically influence the elements of energy security such as hydro-carbon prices, energy efficiency and environmental sustainability, to ensure efficient energy supply and utilisation (Lucas, Francés, and González 2016;Galinis et al 2020). In this regard, Win-zer (2012) enumerates efficiency, sustainability and energy prices as the principal pillars of the European Union's energy policy.…”

Section: Introductionmentioning

confidence: 99%

On the pursuit of energy security: evidence from the nexus between clean energy stock price and energy security elements

Hassan¹,

Ibrahim

Bala³

2021

International Journal of Sustainable Energy

View full text Add to dashboard Cite

Concerns for fossil fuel price volatility, environmental pollution and energy inefficiency drive the formulation of energy policies aimed at attaining energy security. We use a theoretical framework which integrates key elements of energy security into the context of natural capital theory to investigate the causal relationship between Nasdaq clean energy stock price and a range of variables including oil price, natural gas prices, carbon price and energy efficiency. Our ARDL results reveal that clean energy stock price is jointly and individually explained by the variables representing some elements of energy security. Carbon price and energy efficiency emerged as the most important elements of energy security driving the on-going transition from conventional to clean energy sources. Consequently, governments should take environmental sustainability and energy efficiency very seriously when formulating energy policies in the pursuit of energy security and the way they stimulate substitutions between clean energy sources and hydrocarbons.

show abstract

“…Later on, Gaigalis and Katinas [183] reported that, in 2015-2020, energy consumption increased around 1.3 times, whilst wind energy production increased 2.5 times, biogas energy 2.8 times, and the total emissions of greenhouse gasses decreased by 3% and air pollutants by 23% in Lithuania. Galinis et al [184] examined the implications of gradual and delayed carbon price increases in the four Baltic Sea region countries in the context of energy security. The latter study noted that the Lithuanian local generation is deeply diversified both in terms of power plants and primary energy resources, including gas, wind, biomass and municipal waste as the main ones.…”

Section: Lithuaniamentioning

confidence: 99%

Public Service Obligation Levy in the Context of Energy Sustainability and Security: The Cases of Ireland, Greece, Denmark and Lithuania

Karpavicius

Baležentis

2021

Energies

View full text Add to dashboard Cite

Energy policy affects the functioning of the economic and financial systems of countries worldwide. This paper provides a theoretical overview of the economy–energy nexus and discusses the particular cases of the energy policy dynamics amid the sustainability goals. This paper integrates multiple perspectives on the energy–economy nexus, with a particular focus on the energy trilemma, 4As of energy security and PESTEL approach. This allows the development of a comprehensive framework for the analysis of energy security and the sustainability interaction. A review of manifestations of the different dimensions of energy security and sustainability is carried out to identify the most topical facets of the issue. Then, the cases of the selected European Union countries (Ireland, Greece, Denmark and Lithuania) are presented to highlight the effects and features of the recent energy policy changes there. Indeed, these countries apply a PSO levy mechanism on electricity tariffs and are diverse in their geopolitical situation, economic development, geographical situation and energy dependency level. The analysis of the situations of such different countries applying the PSO levy mechanism makes it possible to perform a broader and more in-depth assessment and comparison of electricity tariff regulations. Thus, the developed theoretical model is applied to identify the major outcomes of the energy policy regimes (with a focus on tariff regulation) in the selected countries.

show abstract

Implications of carbon price paths on energy security in four Baltic region countries

Cited by 20 publications

References 36 publications

External energy security elements and the riskiness of clean energy stocks: a volatility analysis

External energy security elements and the riskiness of clean energy stocks: a volatility analysis

On the pursuit of energy security: evidence from the nexus between clean energy stock price and energy security elements

Public Service Obligation Levy in the Context of Energy Sustainability and Security: The Cases of Ireland, Greece, Denmark and Lithuania

Contact Info

Product

Resources

About