This article presents an economic case for governments providing financial support for the solar and the wind-powered electricity sector. To do this, it takes into account both the environmental consequences of relying on alternative natural resources for electricity production as well as the sustainability of the supply of these resources. It critically examines the relevant literature (it identifies shortcomings and gaps in it) and applies economic principles to demonstrate how government financial support for the development of the green energy electricity sector can add to social economic welfare. It provides a significant contribution to the existing literature. This is because (when compared with the present literature) it provides an improved classification of energy resources, and a more comprehensive account of the nature of social economic choices involved in relying on solar and wind power rather than on fossil fuels to supply electricity.
{"title":"Renewable energy use and the renewable energy sector’s development: public finance, environmental externalities and sustainability","authors":"C. Tisdell","doi":"10.3934/GF.2019.2.156","DOIUrl":"https://doi.org/10.3934/GF.2019.2.156","url":null,"abstract":"This article presents an economic case for governments providing financial support for the solar and the wind-powered electricity sector. To do this, it takes into account both the environmental consequences of relying on alternative natural resources for electricity production as well as the sustainability of the supply of these resources. It critically examines the relevant literature (it identifies shortcomings and gaps in it) and applies economic principles to demonstrate how government financial support for the development of the green energy electricity sector can add to social economic welfare. It provides a significant contribution to the existing literature. This is because (when compared with the present literature) it provides an improved classification of energy resources, and a more comprehensive account of the nature of social economic choices involved in relying on solar and wind power rather than on fossil fuels to supply electricity.","PeriodicalId":41466,"journal":{"name":"Green Finance","volume":" ","pages":""},"PeriodicalIF":8.6,"publicationDate":"2019-04-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"46365028","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
P. Failler, Claire Montocchio, A. B. D. Battisti, T. Binet, Jean-Philippe Maréchal, MyriamThirot
Marine Protected Areas require sustainable funding for their effectiveness. This article aims to provide an analysis of the feasibility of financial possibilities for the support of a Regional Marine Protected Area in Martinique. It provides a valuation of the funding alternatives. The concept of payment for ecosystem services is introduced to seek the benefits that fishermen can get from their involvement in the management of the protected areas.
{"title":"Sustainable financing of marine protected areas: the case of the Martinique regional marine reserve of “Le Prêcheur”Running title: Marine protected Areas sustainable financing: the case of the Martinique Regional Marine Reserve","authors":"P. Failler, Claire Montocchio, A. B. D. Battisti, T. Binet, Jean-Philippe Maréchal, MyriamThirot","doi":"10.3934/GF.2019.2.110","DOIUrl":"https://doi.org/10.3934/GF.2019.2.110","url":null,"abstract":"Marine Protected Areas require sustainable funding for their effectiveness. This article aims to provide an analysis of the feasibility of financial possibilities for the support of a Regional Marine Protected Area in Martinique. It provides a valuation of the funding alternatives. The concept of payment for ecosystem services is introduced to seek the benefits that fishermen can get from their involvement in the management of the protected areas.","PeriodicalId":41466,"journal":{"name":"Green Finance","volume":" ","pages":""},"PeriodicalIF":8.6,"publicationDate":"2019-04-11","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"43678880","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Faced with the globally spread increase in electricity consumption, renewable energies are rushing to set themselves as leaders on the already ongoing “next energy transition”. It is thus relevant to investigate a new strategy that allows retail investors, producers and financial institutions to benefit from this transition, without jeopardizing consumers, through the creation of a socially responsible structured financial product applied to electricity generation from renewable sources. This paper defines a strategy for the creation of such financial product with special emphasis on the variable element, by further exploring the use of option contracts as the derivative component of our product. To cope with that, we propose the integration of continuous models (such as Black-Scholes) with some of the assumptions of discretized ones to capture and predict the spot price movements in the Iberian energy market. This way we reach for simplicity while capturing the most important moments of “real life” markets, defined by matching both statistical and trajectorial moments using a jump-diffusion mean-reverting model. We conclude that there is in fact a market from which everyone can benefit, but its success is subject to transparency and openness.
{"title":"A structured financial product applied to renewable energies","authors":"Manuel Padeira Navarro, Margarida Catalão‐Lopes","doi":"10.3934/GF.2019.1.82","DOIUrl":"https://doi.org/10.3934/GF.2019.1.82","url":null,"abstract":"Faced with the globally spread increase in electricity consumption, renewable energies are rushing to set themselves as leaders on the already ongoing “next energy transition”. It is thus relevant to investigate a new strategy that allows retail investors, producers and financial institutions to benefit from this transition, without jeopardizing consumers, through the creation of a socially responsible structured financial product applied to electricity generation from renewable sources. This paper defines a strategy for the creation of such financial product with special emphasis on the variable element, by further exploring the use of option contracts as the derivative component of our product. To cope with that, we propose the integration of continuous models (such as Black-Scholes) with some of the assumptions of discretized ones to capture and predict the spot price movements in the Iberian energy market. This way we reach for simplicity while capturing the most important moments of “real life” markets, defined by matching both statistical and trajectorial moments using a jump-diffusion mean-reverting model. We conclude that there is in fact a market from which everyone can benefit, but its success is subject to transparency and openness.","PeriodicalId":41466,"journal":{"name":"Green Finance","volume":" ","pages":""},"PeriodicalIF":8.6,"publicationDate":"2019-03-25","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"43001500","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
P. Tuominen, F. Reda, Waled Dawoud, Bahaa Elboshy, Ghada Elshafei, A. Negm
This paper proposes a method and a tool based on cost-effectiveness analysis (CEA) for assessing energy efficiency improvements in buildings using a case example from Egypt. Commonly used methods for economic appraisal of energy efficiency improvements have shortcomings that warrant the study of alternative methods. To offer avenues for improving the current economic assessment of energy efficiency, methods used in other fields are studied. A chain of argumentation for choosing a suitable method is developed. As a result, CEA appears to be best suited to the problem at hand. It can be used to, first, define the cost of the primary aim of saving energy and, second, allow the comparison of alternative investments in sustainable energy, not limited to energy conservation alone. A case building is studied with a calculation using a CEA method adapted for energy efficiency improvements in buildings to demonstrate the use of the method. In the case studied the CEA calculation produced costs of 0.26–0.60 USD/kWh for energy saved by the energy efficiency investments made. A systematic appraisal of cost-effectiveness of alternative energy efficiency projects would allow pointing out the most effective ones in terms of energy saved per money spent.
{"title":"A cost-effectiveness assessment method and tool for assessing energy efficiency improvements in buildings","authors":"P. Tuominen, F. Reda, Waled Dawoud, Bahaa Elboshy, Ghada Elshafei, A. Negm","doi":"10.3934/GF.2019.1.67","DOIUrl":"https://doi.org/10.3934/GF.2019.1.67","url":null,"abstract":"This paper proposes a method and a tool based on cost-effectiveness analysis (CEA) for assessing energy efficiency improvements in buildings using a case example from Egypt. Commonly used methods for economic appraisal of energy efficiency improvements have shortcomings that warrant the study of alternative methods. To offer avenues for improving the current economic assessment of energy efficiency, methods used in other fields are studied. A chain of argumentation for choosing a suitable method is developed. As a result, CEA appears to be best suited to the problem at hand. It can be used to, first, define the cost of the primary aim of saving energy and, second, allow the comparison of alternative investments in sustainable energy, not limited to energy conservation alone. A case building is studied with a calculation using a CEA method adapted for energy efficiency improvements in buildings to demonstrate the use of the method. In the case studied the CEA calculation produced costs of 0.26–0.60 USD/kWh for energy saved by the energy efficiency investments made. A systematic appraisal of cost-effectiveness of alternative energy efficiency projects would allow pointing out the most effective ones in terms of energy saved per money spent.","PeriodicalId":41466,"journal":{"name":"Green Finance","volume":" ","pages":""},"PeriodicalIF":8.6,"publicationDate":"2019-03-07","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"48725611","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
The recent financial crisis and its aftermath boost the research of economic policy uncertainty and its relevant topics. In this paper, we forecast the oil return risks based on the CAViaR method and further depict the dynamic and heterogeneous features during the crisis (or non-crisis) period, as well as in different markets via DCC-GARCH models. The empirical results show the linkage of economic policy uncertainty and oil return risks, indicating an increasing trend and stronger relationship with major events. Further study shows the heterogeneous feature existing during crisis or non-crisis period, and there is heterogeneity in values and variations of their linkage in different markets. Therefore, policymakers should intervene timely in the crude oil market, release good news, and stabilize oil prices during the crisis period. During the non-crisis period, however, investors need to rationally analyze the price trend of the oil market, thereby preventing possible risks in the market.
{"title":"The heterogeneous linkage of economic policy uncertainty and oil return risks","authors":"Hao Dong, Yue Liu, Jiaqi Chang","doi":"10.3934/GF.2019.1.46","DOIUrl":"https://doi.org/10.3934/GF.2019.1.46","url":null,"abstract":"The recent financial crisis and its aftermath boost the research of economic policy uncertainty and its relevant topics. In this paper, we forecast the oil return risks based on the CAViaR method and further depict the dynamic and heterogeneous features during the crisis (or non-crisis) period, as well as in different markets via DCC-GARCH models. The empirical results show the linkage of economic policy uncertainty and oil return risks, indicating an increasing trend and stronger relationship with major events. Further study shows the heterogeneous feature existing during crisis or non-crisis period, and there is heterogeneity in values and variations of their linkage in different markets. Therefore, policymakers should intervene timely in the crude oil market, release good news, and stabilize oil prices during the crisis period. During the non-crisis period, however, investors need to rationally analyze the price trend of the oil market, thereby preventing possible risks in the market.","PeriodicalId":41466,"journal":{"name":"Green Finance","volume":" ","pages":""},"PeriodicalIF":8.6,"publicationDate":"2019-03-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"45736083","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Junhao Zhong, Mengdi Wang, B. Drakeford, Tinghui Li
In this paper, we highlight and empirically analyze the spillover effect of oil and natural gas prices between emerging and developed countries over the period from December 2001 to Jun 2017. A Granger causality test and the DY spillover index are used to investigate the connectedness in energy markets of the USA, Europe, and China. Our main findings are that oil and natural gas markets have significant Granger causality. Furthermore, the emerging markets play an important influencing role on many developed markets both in returns and volatility spillover systems. The spillover index between different markets has clear time-varying characteristics and a strong correlation with specific events. These results can have good applicability in practice.
{"title":"Spillover effects between oil and natural gas prices: Evidence from emerging and developed markets","authors":"Junhao Zhong, Mengdi Wang, B. Drakeford, Tinghui Li","doi":"10.3934/GF.2019.1.30","DOIUrl":"https://doi.org/10.3934/GF.2019.1.30","url":null,"abstract":"In this paper, we highlight and empirically analyze the spillover effect of oil and natural gas prices between emerging and developed countries over the period from December 2001 to Jun 2017. A Granger causality test and the DY spillover index are used to investigate the connectedness in energy markets of the USA, Europe, and China. Our main findings are that oil and natural gas markets have significant Granger causality. Furthermore, the emerging markets play an important influencing role on many developed markets both in returns and volatility spillover systems. The spillover index between different markets has clear time-varying characteristics and a strong correlation with specific events. These results can have good applicability in practice.","PeriodicalId":41466,"journal":{"name":"Green Finance","volume":" ","pages":""},"PeriodicalIF":8.6,"publicationDate":"2019-03-03","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"48509558","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Welcome to Green Finance: A new open access journal for sustainable research professionals","authors":"P. Failler, Zhenghui Li","doi":"10.3934/GF.2019.1.1","DOIUrl":"https://doi.org/10.3934/GF.2019.1.1","url":null,"abstract":"","PeriodicalId":41466,"journal":{"name":"Green Finance","volume":" ","pages":""},"PeriodicalIF":8.6,"publicationDate":"2019-02-14","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"42619205","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Business and policy models to incentivise utilities to engage with demand-side management (DSM) have received more attention in the grey literature than the academic literature. This review paper contributes to filling this gap by reviewing theoretical frameworks for four key categories of business models and how they relate to policy models that enable their implementation. The paper proposes a theoretical lens through which to visualise the different frameworks. The review discusses the key benefits and challenges for utilities to engage with DSM, and finds that deferred investment in new generation capacity, new business opportunities and services, and dealing with variable power production are the primary benefits, and limited incentives to invest in markets based on the quantity of energy sold and cost recovery issues (such as DSM programme costs) are the main challenges. The paper reviews four primary business and policy models: decoupling, demand-side participation in capacity markets, utility obligations and Energy Service Companies (ESCOs), and finds that despite the limitations of the evidence base on the applicability of decoupling in fully liberalised markets, demand-side participation in capacity markets, utility obligations and ESCOs appear to be applicable across contexts.
{"title":"Business and policy models to incentivise utilities to engage with demand-side management","authors":"P. Warren","doi":"10.3934/GF.2019.1.4","DOIUrl":"https://doi.org/10.3934/GF.2019.1.4","url":null,"abstract":"Business and policy models to incentivise utilities to engage with demand-side management (DSM) have received more attention in the grey literature than the academic literature. This review paper contributes to filling this gap by reviewing theoretical frameworks for four key categories of business models and how they relate to policy models that enable their implementation. The paper proposes a theoretical lens through which to visualise the different frameworks. The review discusses the key benefits and challenges for utilities to engage with DSM, and finds that deferred investment in new generation capacity, new business opportunities and services, and dealing with variable power production are the primary benefits, and limited incentives to invest in markets based on the quantity of energy sold and cost recovery issues (such as DSM programme costs) are the main challenges. The paper reviews four primary business and policy models: decoupling, demand-side participation in capacity markets, utility obligations and Energy Service Companies (ESCOs), and finds that despite the limitations of the evidence base on the applicability of decoupling in fully liberalised markets, demand-side participation in capacity markets, utility obligations and ESCOs appear to be applicable across contexts.","PeriodicalId":41466,"journal":{"name":"Green Finance","volume":" ","pages":""},"PeriodicalIF":8.6,"publicationDate":"2019-02-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"42684035","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"The importance of financial cost for renewable energy projects: economic viability assessment of renewable hybrid mini-grid systems in Indonesia","authors":"Alexander Ryota Keeley, Shunsuke Managi","doi":"10.3934/gf.2019.2.139","DOIUrl":"https://doi.org/10.3934/gf.2019.2.139","url":null,"abstract":"","PeriodicalId":41466,"journal":{"name":"Green Finance","volume":"1 1","pages":""},"PeriodicalIF":8.6,"publicationDate":"2019-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"70251633","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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