We study the impact of the loss function used to estimate the parameters of a regression-type model on profits and risk in day-ahead electricity trading. To provide practical insights, we consider a strategy that incorporates battery storage and includes realistic operating costs in the calculation of revenues. Using 2021-2024 data from the German market as the testing ground, we provide evidence that

Previous research has largely overlooked electricity trade when estimating marginal emission factors (MEFs), despite its growing significance in Europe and beyond. This study introduces a robust and consistent econometric framework to accurately estimate the MEFs for trade, demand, and different supply technologies in a highly interconnected market. We use exogenous supply shocks (variations in wind

Media evidence and previous research have established that geopolitical risk is an important driver of crude oil price volatility. In this paper, we assess whether the importance of geopolitical uncertainty is also ”translated” into valuable predictive information for oil price volatility forecasts. To do so, we construct a ”beauty contest” where we assess the incremental predictive content of geopolitical

This study examines B2B relationship management practices in energy supply chains under geopolitical risks and their impact on stock market volatility. We analyze U.S. energy firms' earnings conference calls across three dimensions: intra-firm managerial behavior, inter-firm relationship management, and relationship evaluation. Employing Word2Vec and structural topic modeling, we identify specific

This study explores the links between climate transition risks, ESG sentiment and stock prices in the European context. It provides novel insights into the literature of sentiment-related stock markets, ESG's impact on firm market value, and climate-related financial analysis. Using an advanced methodology, including the time-varying parameter vector autoregressive (TVP-VAR) connectedness method and

As renewable energy grows, flexible electricity demand becomes essential. We conducted a field experiment with nine heat pumps in well-insulated homes near Ghent, Belgium. During 287 flexibility interventions, we remotely deactivated heating until indoor temperatures reached predefined thresholds or households manually overruled the intervention. After initiating a flexibility event, the heat pump

This study evaluates the impact of energy outages and in-house power generators on capacity utilization among approximately 12,000 African firms. Energy outages and in-house power generators are measured by the days that firm experienced energy outages and the share of self-generated electricity as a proportion of total electricity consumed, respectively. We further construct quantile dummies based

Investment in transmission is recognized as essential to power system decarbonization, and at the same time it has been established that proactive grid planning can help mitigate market failures in electricity markets such as market power. In this paper, we bring these ideas together by exploring the extent to which transmission planning can proactively and cost-effectively reduce carbon emissions

Artificial intelligence (AI) has a strong spillover effect and acts as an essential propellant for advancements in technology and development. Using A-share listed enterprises between 2007 and 2022 as the sample, we assess the influence of AI on energy technology innovation (ETI). Our findings highlight that AI can promote ETI primarily by improving the human capital structure and encouraging enterprises

The adoption of electric freight vehicles (EFVs) is integral to achieving sustainable urban freight mobility (UFM); however, their large-scale deployment remains constrained by a number of financial, infrastructural, regulatory, policy, and operational barriers. This study employs a robust multi-criteria decision analysis (MCDA) framework, which integrates fuzzy Delphi, decision-making trial and evaluation

Energy poverty can be pronounced in a cost-of-living crisis, especially when combined with housing-cost pressure for renters. In Australia, energy poverty has been a persistent problem for over a decade, especially for renters. This paper uses four different Australian household surveys covering 2012–2024 to decompose energy poverty gaps between housing renters and non-renters. We find that the capacity

This paper investigates how extreme weather conditions affect power generators across Europe, with a focus on the differing vulnerabilities and adaptive responses of hydropower and thermal plants. Using a granular panel dataset of daily power plant outages and local weather conditions (2017–2023), we assess the influence of extreme temperatures, floods, and droughts on outage risks. We distinguish

This study offers empirical evidence indicating the transfer of price bubbles from the oil and gas markets to banking risk following Russia's invasion of Ukraine in February 2022 causing the outburst of a major energy crisis. Against this backdrop, the objective of this paper is threefold. First, we employ the Log-Periodic Power Law Singularity (LPPLS) model, to identify both positive and negative

Based on Harmonized System 6-digit code data from 1995 to 2022, this study uses survival analysis to assess the survival of global energy imports, which characterizes resilience. Next, it quantitatively investigates the impact of geopolitical risks in exporting countries on import survival. The key findings are summarized as follows. First, the average length of the 300,971 trade spells is 3.269 years

This study examines the impact of access to time-saving appliances (TSA) on children's educational outcomes in rural Pakistan, with a particular focus on school retention, which reflects students' ability to remain enrolled and progress through the education system. Using village-level ownership in households without school-aged children as an instrument, this study identifies a causal link between

In this study, we examine the impact of global economic indicators on connectedness spillovers among energy, metal, and grain commodity markets. Global economic indicators directly create a transmission channel to commodity markets by reflecting financial and trade fluctuations worldwide. Especially in tail regions, basic commodities such as energy, metal, and grain are affected by economic uncertainties

Since 2012, there are four different electricity price zones in Sweden, although not until 2021 a clear deviating development can be identified. The aim of this study is to investigate the impact of the regional electricity price divergence starting in 2021 on the demand for solar photovoltaic installations in municipalities in the Southern and Central parts of Sweden. Methodologically, the analysis

Global supply chains have been significantly disrupted by factors such as climate change and digitization. This empirical analysis provides a nuanced perspective on the interplay between renewable energy innovation, digital technology, environmental sustainability, and economic factors. The study employed the Quantile Autoregressive Distributive Lag method that examines relationships across different

The persistent supply chain bottlenecks and monetary policy substantially influence energy prices; however, these factors affect energy prices asymmetrically. Therefore, this study determines the time varying and asymmetric influence of monetary policy shocks (MPS) and supply chain shocks on energy prices in the US. This study adopts a nonlinear autoregressive distributed lag and wavelet coherence

We analyze the drivers of the volume of traded allowances and number of transactions carried out by firms within the European Union Emissions Trading System to study whether heterogeneous levels of trade participation relate to different carbon abatement performances. We analyze the entire Phases II and III of the program. We show that the difference between acquired and transferred allowances is strongly

This article determines the asymmetric impact of oil and fuel prices and the pressure in supply chains on inflation and consumer inflation expectations in Czechia, Hungary and Poland. The research period covers COVID-19 and the beginning of the Russian invasion of Ukraine (2017–2022). We compare the V-3 countries, which are heavily dependent on Russian oil. We estimate the nonlinear ARDL model and

This study theoretically investigates energy-saving investment incentives in duopolies. First, we investigate a binary choice model in which each firm chooses whether to make an energy-saving investment and then they face Cournot competition. We focus on the incentive to become the leading firm by the investment, when the rival does not engage in this project. We find the private incentive to be insufficient

The European Commission recently proposed a 90 % carbon emissions reduction target for the year 2040. Reaching this target will largely rely on decarbonizing the power sector through the deployment of variable renewables through auctions. At the same time, redispatch volumes across the European Union are forecast to increase massively in the context of uncoordinated renewable deployment.

This paper identifies and estimates the relevant cycles in paleoclimate data of earth temperature, ice volume and CO2. Cyclical cointegration analysis is used to connect these cycles to the earth eccentricity and obliquity and to see that the earth surface temperature and ice volume are closely connected. These findings are used to build a forecasting model including the cyclical component as well

Soaring energy prices and supply chain bottlenecks (SCB) have a complex and intricate nexus shaped by global uncertainties. This relationship exhibits heterogeneity and nonlinearity due to varying energy dependencies, economic structures, and supply chain developments across nations. Given this, we explore the asymmetric interplay between SCB and consumer energy prices (CEP) for selected economies

In the context of globalization, the global supply chain faces many challenges. What is the relationship between the global supply chain and the supply–demand structure of crude oil? This paper explores the impact mechanism between global supply chain pressure (GSCPI) and crude oil supply–demand shocks from a time-scale and quantile-based perspective. We select the oil supply–demand shock indices,

Residential solar photovoltaic (PV) systems have become increasingly common in the United States. However, there have been gender, racial and socioeconomic disparities in both the adoption of and returns from investments in solar PV. This paper examines the “pink tax” for solar panels by examining gender-based differences in the financial returns for residential rooftop solar installations using a

Low-carbon technology (LCT) innovation is critical for global low-carbon transformation. To explore the progress and trends of LCT innovation across countries, we examine the impact of the net-zero target on LCT innovation based on based on the latest global data (i.e. panel data from 59 countries for 2013–2021, patent data for 2014–2022 and climate mitigation policy data for 2014–2022). Applying a

Energy Technology Innovation (ETI) has received considerable attention in recent decades as firms strive to comply with pollution regulations and advance green transformation. This study investigates the dynamic impact of Artificial Intelligence (AI) on firm-level ETI and the mechanisms driving this relationship. The results show that AI positively contributes to ETI, although its effects exhibit a

Global fossil fuels subsidies remain large despite the evident environmental and economic gains from their removal. The increasing attempts to avert climate change-related challenges while creating economic opportunities are promoting energy transition through investments in low-carbon energy technologies and their diffusion. Yet, the existing literature has not assessed how fossil fuel subsidies influence

Forecasting commodity prices is vital for economic policy, especially amid recent geopolitical tensions and market disruptions. In recent years, advanced deep learning models have become particularly effective in this domain. Among these models, RNN-based architectures like LSTM and GRU are known for their strong predictive capabilities. In this paper, we show that the FEDformer model offers superior

This paper investigates the transition to sustainable Bitcoin mining and the associated challenges. We identify two key channels of negative externalities stemming from the operations of carbon-intensive (“brown”) miners that discourage the adoption of environmentally friendly (“green”) mining practices. First, the lottery-like mechanism of Bitcoin mining prioritizes relative computational power, disregarding

The degradation of the environment, driven by the reliance on fossil fuels, has prompted governments to shift towards renewable energy sources. While the topic of energy transitions is gaining researchers' attention, the contribution of factors related to policy, the environment, the economy, finance, and technology is still unclear. One such factor is environmental policy stringency that potentially

A Schumpeterian growth model is developed to investigate how environmental policy affects economic growth, when environmental policy also affects the direction of technical change. The model is designed to match several stylized facts to ensure its empirical relevance. It is shown analytically that a tightening of the environmental policy directs research efforts toward pollution abatement technologies

Acheampong (2018) conducted an empirical study to examine the relationships among economic growth, energy use, and CO2 emissions, revealing that economic growth does not significantly cause energy use but significantly reduces CO2 emissions. However, Acheampong's (2018) empirical analysis has some notable flaws. First, applying logarithmic transformations results in many missing values, diminishing

Studies looking at electricity market designs for very high shares of wind and solar often conclude that the energy-only market will break down. Without fuel costs, it is said that there is nothing to set prices. Symptoms of breakdown include long phases of zero prices, scarcity prices too high to be politically acceptable, prices that collapse under small perturbations of capacities from the long-term

This paper investigates the macro-financial impact of carbon policy and the role of reserve requirements in managing climate-related transition risks. Empirical evidence shows that carbon policy shocks lead to a 0.7% output loss, a 0.3% rise in inflation, financial instability, and sectoral reallocation effects. Using a macro-financial DSGE model with environmental features, the model predicts that

Clean production transformation is critical for sustainable development, yet limited research has addressed how public policies can incentivize firms to voluntarily adopt such practices. This paper bridges this gap by developing a game-theoretic framework featuring a government and two symmetric firms engaged in sequential strategy selection. The analysis reveals that a strategically designed minimum

Optimizing waste-to-energy (WTE) technology portfolio is crucial for large waste treatment enterprises to attain sustainable profits and minimize risks in uncertain environments. A key issue is accurately assessing the return of individual technologies and mitigating the impact of parameter variations in portfolio optimization. Traditional portfolio methods rely heavily on precise input parameters

The hike in energy prices across Europe in 2022 and 2023 led to significant government interventions. Several governments introduced ‘energy price cap’ measures to alleviate the increased burden on households’ expenditures. This paper presents an ex ante assessment of the expected distributional impact of the inflation surge and the cushioning effect of these price cap policies introduced in 2023 in

Energy poverty in Sub-Saharan Africa extends beyond access to electricity as it encompasses issues of affordability and reliability. In mitigating the adverse effects of frequent power outages and voltage fluctuations — that exacerbate financial burdens and hinder the ability to meet basic energy needs — households in this region often incur extra costs by relying on generators, voltage stabilizers

This paper explores the role of markets in facilitating the transition to renewable energy sources. It investigates the effectiveness of a wholesale market design in which all electricity is traded on the spot market to provide price signals that encourage investments in renewable generation and storage during this transition. To do this, we develop a model that represents a two-period electricity

Support from local citizens is important for the scale-up of renewable energy. We investigate the impact of utility-scale wind and solar parks on employment, GDP and public finances in Brazilian municipalities using a difference-in-differences design with matching. We find a positive employment impact of 1-1.3 jobs/MW in the 15 months preceding the commissioning of a solar park, when the park is under

Global climate change and the growing pressure of energy transition pose complex challenges for less developed economies in achieving environmental sustainability. Artificial intelligence technology offers a promising avenue for advancing renewable energy development. This study analyzes the non-linear impact of AI technology on the renewable energy, drawing on AI patent data from 56 less developed

Energy Poverty (EP) poses a pervasive challenge within the European Union (EU), impacting both public health and the trajectory of sustainable development. Despite its prevalence, the existing body of literature addressing the measurement of EP in the EU remains limited. This study aims to contribute to the literature by employing a comprehensive approach to assess and classify the EP levels across

This paper investigates the link between firms' ecological footprints (EF) and cybersecurity risk in U.S. companies from 2007 to 2018. We find that higher EF is associated with lower cybersecurity risk. To address endogeneity concerns, we employ multiple identification strategies and confirm the robustness of the results. Mechanism analyses suggest that innovation and cash holdings mediate this relationship

Real-time information has the potential to improve market outcomes in wholesale electricity markets. However, transparency can also facilitate coordination between firms, raising questions over the appropriate extent of information disclosure. Despite this ongoing debate, there is a lack of understanding of the information employed by firms when bidding in wholesale electricity markets. Using data

Environmental regulation policies and market demand are important factors driving the proliferation of electric vehicles. By introducing prospect theory, this study constructs the production decision model of automobile manufacturers based on evolutionary game and networked evolutionary game from both micro and macro perspectives. The results of theoretical and numerical simulation analysis show that:

We analyze whether and to what extent gasoline price shocks influenced headline inflation, one-year gasoline price inflation expectations, and one-year inflation expectations in the United States using a partially identified Bayesian structural vector autoregression model. Results show that headline inflation and one-year inflation expectations increased instantaneously in response to gasoline price

Investigating the crucial role of artificial intelligence in enhancing ESG performance is of utmost importance, particularly for advancing the energy transition. In this study, we utilise the wavelet-based quantile on quantile regression (QQR) to capture the evolving impact of the Artificial Intelligence Enabler Index (AII) on the Global ESG Index (ESGI). Based on raw data, AII's impact on ESGI varies

This paper investigates the effects of environmental policy on firms’ location and green innovation for a two-country, two-firm model. To address this issue, a two-stage game is solved. At the first stage, firms can choose between three actions: to stay in the home country and invest in a green technology; to stay in the home country and produce with the business-as-usual technology; or to move to

This paper aims to explore the gaps in previous research on renewable energy development in Sub-Saharan Africa by examining the impact of geopolitical and economic variables. The study focuses on the factors influencing renewable energy expansion, highlighting the significant progress made by African countries in enhancing their renewable energy capacity. The research employs panel data analysis to

Energy firms, given their importance to overall economic activity, are increasingly seen as sources of systemic risk. Considering the relation of climate-change risk to energy sources, it is sensible to consider energy firms as vulnerable to climate-change. We investigate whether fintech development bolsters energy firms (valuations and dividends) as these firms face greater climate risk. Using an

This study investigates how intra- and extra-territorial imports of energy transition minerals (ETMs) by the 27 Member States of the European Union respond to its energy transition parameters amidst the interplay of financial stress, mineral prices, electoral and political governance, and geopolitical turmoil. It utilizes monthly data from January 2004 to December 2023, also subdivided into two distinct