International Journal of Energy Economics and Policy https://econjournals.com/index.php/ijeep <p><strong>International Journal of Energy Economics and Policy (IJEEP) </strong>is the international academic journal, and is a double-blind, peer-reviewed academic journal publishing high quality conceptual and measure development articles in the areas of energy economics, energy policy and related disciplines. The journal has a worldwide audience. The journal's goal is to stimulate the development of energy economics, energy policy and related disciplines theory worldwide by publishing interesting articles in a highly readable format. ISSN: 2146-4553</p> <p><strong>Ranking: 2020 SJR: 0.449<br /></strong><strong>20/65 Energy</strong>: General Energy (Scopus®)<br /><strong>2020 CiteScore: 3.5<br /></strong><strong>Editorial Board: 78 editors in 27 countries/regions</strong></p> en-US Submission of an article implies that the work described has not been published previously , that it is not under consideration for publication elsewhere, that its publication is approved by all authors and tacitly or explicitly by the responsible authorities where the work was carried out, and that, if accepted, will not be published elsewhere in the same form, without the written consent of the Publisher. The Editors reserve the right to edit or otherwise alter all contributions, but authors will receive proofs for approval before publication. ijeep@econjournals.com (Ilhan OZTURK) ijeep@econjournals.com (Ilknur Ozturk) Wed, 19 Jan 2022 12:47:56 +0000 OJS 3.3.0.8 http://blogs.law.harvard.edu/tech/rss 60 Energy Mix Optimization from Energy Security Perspective Based on Stochastic Models https://econjournals.com/index.php/ijeep/article/view/9504 <p>As a problem, generally, energy security components do not interfere with the calculation of the optimal energy supply situation. Energy security indices so-called 'passive indices' cannot illustrate comprehensive optimal situation. In this paper, we are looking to find a solution to make a framework of the impact of energy security on energy supply in order to obtain comprehensive analysis of the economic optimal point. Method is based on the competition of energy costs to meet demand during the study period. Threats that have been addressed in the energy security are seen as risky and stochastic parameters in the model. The nature of these parameters is of uncertainty type, therefore, based on the probable scenarios of the stochastic model, the perspective of the energy supply system is drawn up based optimizing the supply of different carrier energy. We apply this method on Iran's import of gasoline as a national threat of energy supply. According to the results, in the period when there are threats of energy imports, energy storage is a low-cost and safe way to compensate for the damage caused by threats. Assuming an annual growth of 5%, capacity can be increased to 8 million barrels during the threat period. The optimal index varies in this period between 0.04 and 0.06.</p> Yaser Kanani Maman, Abbas Maleki Copyright (c) 2022 International Journal of Energy Economics and Policy https://econjournals.com/index.php/ijeep/article/view/9504 Wed, 19 Jan 2022 00:00:00 +0000 The Innovative Ways of Development in the Oil and Gas Industry of Kazakhstan https://econjournals.com/index.php/ijeep/article/view/11505 <p>The article considers theoretical and methodological approaches to research of sustainable development of the oil and gas industry of Kazakhstan in modern conditions. Oil and gas industry is viewed as one of the priority directions of government economic policy, which is of particular importance in providing sustainable development of the country. It is noted, that increasing of stability of Kazakhstani oil and gas industry development is presented itself one of the most important issue of state economics. Authors identify main problems affecting on innovative development of the oil and gas industry. It was emphasized, taking into account the current trends, stability of oil and gas complex is affected by the number of conjuncture market factors, including price factors, bank interest rates, market conjuncture for this product, or value of its supply and demand in domestic and foreign markets. Main principles and criteria of innovative development of the oil and gas industry were developed. It is proved, that innovative development of the oil and gas industry should be carried out on the basis of the principles. The forecast of innovative development of the oil and gas industry was built on the basis of designed formula. The forecast of revenue from innovations is on the perspective period in the extraction and processing of high-sulfur, light and heavy oil for 2022-2026 that presented as table and forecast diagram. The innovative development of the oil and gas industry should be carried out on the basis of the researched principles. As a result of conducted research priorities of innovative development of the oil and gas industry were identified.</p> Sabina Beisembekova, Muratbay Sikhimbayev, Dinar Sikhimbayeva, Gulnara Srailova Copyright (c) 2022 International Journal of Energy Economics and Policy https://econjournals.com/index.php/ijeep/article/view/11505 Wed, 19 Jan 2022 00:00:00 +0000 Causality Relationship between Electric Power Consumption and Economic Growth in Malaysia and Thailand: ARDL Bound Testing Approach https://econjournals.com/index.php/ijeep/article/view/11813 <p>This paper examined the causal relationships between per capita electric power consumption and economic growth per capita in Malaysia and Thailand. The data used in this study was the yearly data from 1971 to 2014. The ARDL and Granger causality approaches were employed. Overall, the empirical results showed that it had established a long-run relationship between electric power consumption and economic growth. Moreover, the Granger causality approach recognized a one-way causal direction flowing from economic growth to electric power consumption in Malaysia. However, for Thailand, empirical results had no long-run relationship between electric power consumption and economic growth. Therefore, the Granger causality approach had recognized no way of causal direction flowing from electric power consumption to economic growth. Finally, the empirical results of this study provided policymakers a better understanding of energy consumption and economic growth nexus to formulate energy policy in Malaysia and Thailand. In addition, the government of Malaysia should consider the economic situation when implementing the relevant energy policies.</p> Tanattrin Bunnag Copyright (c) 2022 International Journal of Energy Economics and Policy https://econjournals.com/index.php/ijeep/article/view/11813 Wed, 19 Jan 2022 00:00:00 +0000 Analysis of Gas, Oil, and Coal Company Performance during Pandemic of Covid-19: A Case Study of Indonesia https://econjournals.com/index.php/ijeep/article/view/11944 <p>Energy potential and demand in Indonesia continues to grow, especially for coal power generation needs. Likewise, energy needs derived from gas and oil for industrial, household, and transportation needs, even during the COVID-19 pandemic. Therefore, energy companies must have good performance to meet these needs. This study aims to determine the performance of energy companies, especially in gas &amp; oil companies and coal companies, and the factors that influence them. The study was conducted in the last 3 years, namely 2018 to 2020 where there was a transition between before and during the pandemic. The study results found that there was a significant decrease between performance before the pandemic and during the pandemic. The decline was felt mainly by gas and oil companies. In addition, company size and liquidity are the most important factors to maintain the performance of energy companies. This is because the need for working capital to run an energy company is very large so that if it experiences a lack of funds, the company has the potential not to achieve the expected performance. In addition, of the two types of companies studied, coal companies significantly influence the performance of energy companies. This is in line with the huge energy demand from coal in Indonesia and the abundant coal reserves so that the opportunity to earn profits is greater than that of gas and oil companies.</p> Dedi Kusmayadi, Yusuf Abdullah, Irman Firmansyah Copyright (c) 2022 International Journal of Energy Economics and Policy https://econjournals.com/index.php/ijeep/article/view/11944 Wed, 19 Jan 2022 00:00:00 +0000 A Software Application to Support Decision-making in Small-scale Photovoltaic Projects https://econjournals.com/index.php/ijeep/article/view/11959 <p>Electricity generation through photovoltaic technology is the fastest growing in the world. Due to its linear power growth characteristic, small-scale generation on grid is common in several countries. In Brazil, in the context of this study, the small-scale solar PV exponentially grows since the implementation of the Distributed Generation market regulation in 2012. Several installer companies have emerged in the country and many residential, commercial and industrial investors are eager to invest in photovoltaic systems. As much as all installers offer the integration of a photovoltaic system, several peculiarities in service and quality are perceived by customers, which makes their decision difficult. So, the aim of this study is to present a software application to support decision-making in small-scale photovoltaic projects. The modelling and application are presented through a case study with an investor who needed to choose between four projects to invest. With the software application use, the investor can reflect on his preferences and changes in the project to improve his satisfaction. Besides, he can compare different projects budgeted by installers, helping in the decision-making process. In the case study, it was possible to see the difference between the four budgets and choose the one that best met the investor's expectations.</p> Paula Donaduzzi Rigo, Carmen Brum Rosa, Graciele Rediske, Julio Cezar Mairesse Siluk, Leandro Michels Copyright (c) 2022 International Journal of Energy Economics and Policy https://econjournals.com/index.php/ijeep/article/view/11959 Wed, 19 Jan 2022 00:00:00 +0000 Strengths and Weaknesses of the Russian Concept for the Development of Production and Use of Electric Vehicles Until 2030 https://econjournals.com/index.php/ijeep/article/view/11932 <p>Russia has not yet paid due attention to the issues of the transition to electric transport. Only in August 2021, the Russian Government approved a Concept for the development of production and use of electric road transport in the Russian Federation for the period up to 2030. The aim of this study is analysis the Concept from the point of view of world experience in stimulating the development of the electric vehicle market. The study showed that the most elaborated directions of the Concept for the development of production and use of electric road transport in the Russian Federation for the period up to 2030 are the direction of creating a national production of batteries and hydrogen fuel cells, as well as the direction of creating national production facilities and localizing foreign production of electric vehicles, including cars with hydrogen fuel cells. The least developed direction of the Concept is the direction of creating a national base for certification and testing of electric vehicles, which indicates the problem of a lack of competencies in the scientific and technical sphere.</p> Valeriy I. Iosifov, Pavel D. Ratner Copyright (c) 2022 International Journal of Energy Economics and Policy https://econjournals.com/index.php/ijeep/article/view/11932 Wed, 19 Jan 2022 00:00:00 +0000 Hydrogen Economy as a Driver of Synergetic Technological Development: Policy and Application Evidence from Russia https://econjournals.com/index.php/ijeep/article/view/11901 <p>Hydrogen energy is still at an early stage of development: Nevertheless, national and international strategies are used to boost its development by all kinds of incentives, subsidies, tax instruments and R&amp;D financing of pilot projects in order to achieve the main goals: decarbonization of the energy sector, ensuring the reliability of supply of energy systems. The technical capabilities of decarbonization are still coexisting with high production costs, difficulties in storing and delivering hydrogen to consumers. Shift to hydrogen economy is not possible without thorough consideration of policies at different levels as well as technological advances. In this article the author analyses current situation of Russian hydrogen economics from strategic and technological point of view. The main agenda-setting documents and contributors in the field of technical deployment of hydrogen projects have been analyzed by applying content-analysis. Main policy implications and recommendations have also been given.</p> Anastaisa Salnikova Copyright (c) 2022 International Journal of Energy Economics and Policy https://econjournals.com/index.php/ijeep/article/view/11901 Wed, 19 Jan 2022 00:00:00 +0000 Sustainable Electricity Supply and Poverty Reduction in Nigeria https://econjournals.com/index.php/ijeep/article/view/10746 <p>The poverty situation in the rural areas of the country deserves greater attention; the available statistics from the NBS reveal that the majority of the poor are located in the rural areas. It is really impossible to envision industrialization and societal well-being or high standard of living without adequate and reliable electricity supply. Sustainable electricity supply will aid the artisans, traders, farmers with storage facilities, reduce the rural-urban immigration, improve the standard of living in the rural areas, and encourage rural industrialization and capital formation. This study investigates the impact of sustainable electricity supply on poverty reduction in Nigeria. A time series data from 1981 to 2018 was analysed for this study. Based on the outcome of this study, it could be seen clearly that while electricity generation play a significantly role reducing poverty in the country, electricity consumption does not guarantee poverty reduction. Also, apart from the fact that poverty level in the past period is found to have a direct and statistically significant effect on the poverty rate in the current period, it was also revealed that lower unemployment rate does not really translate into reduction in the poverty level in Nigeria. The study therefore recommend that electricity generation should be given more attention and while trying to address the menace of unemployment in the country, underemployment and labour exploitation must also be tackled headlong.</p> Oluwasegun Eseyin, Joseph Olufemi Ogunjobi Copyright (c) 2022 International Journal of Energy Economics and Policy https://econjournals.com/index.php/ijeep/article/view/10746 Wed, 19 Jan 2022 00:00:00 +0000 Grid-connected Electricity Generation Potential from Energy Crops: A Case Study of Marginal Land in Thailand https://econjournals.com/index.php/ijeep/article/view/11903 <p>This paper provides an assessment of the geographical potential of grid-connected electricity generation from the planting of energy crops using GIS while also estimating the levelized costs of electricity (LCOE) under three biomass-prices scenarios. To avoid competition for land use between food and energy crops, marginal land or unsuitable areas (low soil fertility) were used as case study sites for planting energy crops (Napier grass). The total estimated potential based on the location of energy crops and electrical substations was 11,224 MW or 66,367 GWh/y, equivalent to approximately 26.5% of Thailand's total electricity demand in 2037. The LCOEs under the three scenarios ranged from 0.103 to 0.120 USD/kWh for a 9MW capacity power plant, which were lower than the feed-in tariff rate. The results of economic assessment under three scenarios showed positive NPV values but relatively long discounted payback periods. The project and equity IRR ranged from 11.94 to 14.04% and 24.40 to 30.89%, respectively. These findings can be used for land-use planning and energy crop promotion to increase the share of grid-power generation from biomass.</p> Thanarat Pratumwan, Warunee Tia, Adisak Nathakaranakule, Somchart Soponronnarit Copyright (c) 2022 International Journal of Energy Economics and Policy https://econjournals.com/index.php/ijeep/article/view/11903 Wed, 19 Jan 2022 00:00:00 +0000 Forecasting Hourly Electricity Demand Under COVID-19 Restrictions https://econjournals.com/index.php/ijeep/article/view/11890 <p>The rapid spread of the COVID-19 pandemic has severely impacted many sectors including the electricity sector. The restrictions such as lockdowns, remote-working, and -schooling significantly altered the consumers' behaviors and demand structure especially due to a large number of people working at home. Accurate demand forecasts and detailed production plans are crucial for cost-efficient generation and transmission of electricity. In this research, the restrictions and their corresponding timing are classified and mapped with the Turkish electricity demand data to analyze the impact of the restrictions on total demand using a multiple linear regression model. In addition, the model is utilized to forecast the electricity demand in pandemic conditions and to analyze how different types of restrictions impact the total electricity demand. It is found that among three levels of COVID-19 restrictions, age-specific restrictions and the complete lockdown have different effects on the electricity demand on weekends and weekdays. In general, new scheduling approaches for daily and weekly loads are required to avoid supply-demand mismatches as COVID-19 significantly changed the consumer behavior, which appears as altered daily and weekly load profiles of the country. Long-term policy implications for the energy transition and lessons learned from the COVID-19 experience are also discussed.</p> Ali Kok, Ergün Yükseltan, Mustafa Hekimoğlu, Esra Agca Aktunc, Ahmet Yücekaya, Ayşe Bilge Copyright (c) 2022 International Journal of Energy Economics and Policy https://econjournals.com/index.php/ijeep/article/view/11890 Wed, 19 Jan 2022 00:00:00 +0000 Asymmetric Relationship between Exchange Rate Volatility and Oil Price: Case Study of Thai-Baht https://econjournals.com/index.php/ijeep/article/view/11940 <p>This paper aims to investigate asymmetric relationship between exchange rate volatility and oil price using a nonlinear auto-regressive distribution Lag (NARDL) developed by Shin et al. (2014). This technique allow us for estimating asymmetric long-run as well as short-run coefficients in a cointegration framework. For exchange rate volatility measurement, GARCH (1,1) model is applied. We use monthly data from January 2000 to June 2021. The results show that there are asymmetric impacts of oil price shocks on Thailand exchange volatility both in the long run and short run.<br />Moreover, both positive and negative shocks on stock price index increase exchange volatility in the short run.</p> Supanee Harnphattananusorn Copyright (c) 2022 International Journal of Energy Economics and Policy https://econjournals.com/index.php/ijeep/article/view/11940 Wed, 19 Jan 2022 00:00:00 +0000 Renewable Energy Embedded Sustainable Supply Chains with Methane Harness: The Gateway to ASEAN Strategy Illustration with Mixed Model Analysis https://econjournals.com/index.php/ijeep/article/view/12627 <p>Intent, initiative, immersion, impact manifest through the renewable energy embedded sustainable supply chains. The value-add is more enhanced with COP26 determination to curb methane minimum minus thirty percent. The change obviously embeds benefits, through intent on societal empowerment, initiative on water waste energy rehaul, immersion with gender aligned supply chains. This paper is on the construct of mixed method based qualitative methodology on value-add change that embeds benefits in the renewable energy embedded sustainable supply chains with methane harness. Embedded energy in supply chains can now focus on innovation retaed to methane and not alone carbon dioxide. Developing regions are vibrant with economic activity that proliferate supply chains. They innately depend on water waste energy footprint. There is resonating need for positioning sustainable supply chains with renewable energy that is gender aligned. Methane is a ultra-potent greenhouse gas that has a win win focus on adoption of renewable energy as well as attain sustainability of energy needs of supply chains. Methane traps one hundred times more heat when present in the atmosphere. Focus on methane is potent as it gets removed within a decade, in contrast to carbon dioxide that lingers over centuries. The linkgage options through innovation, intent, impact is a contribution of this paper. Supply chain resource corridors are tenable to potential renewable inclusion. The possibility of varying the impacts of different values of the independent variables, future research can confirm the extent of renewable energy adoption with sustainable supply chain growth. One could also design for variance on the changes of location or habitats, that can define the need of a distributed and differentiated range of combinations. A metric could be designed which is responsive to varying combinations of water quality, waste parsimony and renewable energy minus methane feasibility. </p> Salil K. Sen, Tartat Mokkhamakkul Copyright (c) 2022 International Journal of Energy Economics and Policy https://econjournals.com/index.php/ijeep/article/view/12627 Wed, 19 Jan 2022 00:00:00 +0000 Pollution Haven Hypothesis in Africa: Does the Quality of Institutions Matter? https://econjournals.com/index.php/ijeep/article/view/11856 <p>This article aims at investigating whether the FDI inflows affect CO2 emissions for a set of 40 African countries. To be specific, it seeks to perceive, to what extent the quality of institutions plays a role in the empirical validity of the famous pollution haven hypothesis (PHH). We apply Panel ARDL and the three estimators; Pooled Mean Group (PMG), Mean Group (MG) and Dynamic Fixed Effect estimator (DFE) but also Granger causality and Dumitrescu and Hurlin causality for annual data from 1988 to 2016. Long run results indicate the link between FDI, and pollution is relatively complex. If in general, the PHH does not seem to be validated, the result represents quite the opposite when we consider the institutional quality in the diverse African countries. Indeed, our results show the quality of institutions determines the nature of FDI received by African countries. In countries with a high level of corruption, inward FDI significantly reduces CO2 emissions, while in countries with low institutional quality, inward FDI increases CO2 emissions. Some policy recommendations have been formulated to support African countries reduce carbon emissions and support economic development. In particular, institutional reform would enable African countries to reconcile economic development, particularly through the FDI, with environmental quality.</p> Mohamed Bouzahzah Copyright (c) 2022 International Journal of Energy Economics and Policy https://econjournals.com/index.php/ijeep/article/view/11856 Wed, 19 Jan 2022 00:00:00 +0000 Methodology for Assessing Financial Results of Implementation of Energy Innovations Depending on their Progressiveness https://econjournals.com/index.php/ijeep/article/view/11991 <p>The purpose of this article is to develop a methodology that can be used for an objective assessment of financial results and to support managerial decision-making regarding the implementation of energy innovations. The methodology is developed using an interdisciplinary approach and is based on the fuzzy logic theory and method, which allows converting expert judgments and qualitative assessments into final quantitative indicators with some degree of confidence. The methodology includes five input variables that form a fuzzy set "progressivity versus regressivity of energy innovations". The article considers the main criteria based on which an energy innovation can be classified as technologically progressive or regressive. The article demonstrates the efficiency of the developed methodology drawing on the example of two projects for the implementation of energy innovations. The data obtained have shown that one of the innovations can be considered conditionally technologically progressive only by 46%, while the second is certainly technologically progressive by 92%. The conducted correction of the basic financial results allows demonstrating that the implementation project of a conditionally technologically progressive innovation is not cost-effective and requires an increase in capital expenditures or a reduction in expected revenues since it requires a balanced assessment of the feasibility of implementing innovation.</p> Mihail Nikolaevich Dudin, Vadim Nikolaevich Zasko, Olesya Igorevna Dontsova, Irina Valentinovna Osokina Copyright (c) 2022 International Journal of Energy Economics and Policy https://econjournals.com/index.php/ijeep/article/view/11991 Wed, 19 Jan 2022 00:00:00 +0000 Remittances and Energy Consumption: A Panel Data Analysis for MENA Countries https://econjournals.com/index.php/ijeep/article/view/11878 <p>In this paper, we investigate the effect of remittances on energy consumption. To this aim, we analyzed MENA countries over the 1977–2014 period. We used Westerlund and Edgerton's (2007) cointegration test, the AMG estimator, and Dumitrescu and Hurlin's (2012) panel causality tests. The results of the cointegration test showed there is a long-term relationship between remittance inflow and energy consumption. According to the AMG estimator, remittance inflow has a positive impact on energy consumption, indicating that increases in remittances will be followed by increases in energy consumption. The panel causality test displayed a bidirectional causal linkage between remittance and energy consumption. On the basis of these findings, we can say that authorities should take account of remittance inflow in their energy consumption and environmental degradation policies.</p> Ayse Ari Copyright (c) 2022 International Journal of Energy Economics and Policy https://econjournals.com/index.php/ijeep/article/view/11878 Wed, 19 Jan 2022 00:00:00 +0000 Volatility Spillover between Stock Returns and Oil Prices during the Covid-19 Pandemic in ASEAN https://econjournals.com/index.php/ijeep/article/view/11945 <p>This study points to increase global monetary integration as a result of rising volatility spillovers. As a result, analyzing volatility spillovers for international areas that expand and improve through the usage of inventory returns and oil prices is critical. The EGARCH model is used to explore the Volatility Spillovers of oil agencies in five ASEAN international areas during the Covid-19 Pandemic. To assess the interrelationships of the ASEAN stock index as well as the path of volatility, data were acquired from five global sites with very large volatility spillovers, namely Indonesia, Malaysia, Singapore, Thailand, and Vietnam. The findings show that this search is critical for ASEAN traders as well as Filipinos. Furthermore, because accurate forecasting of volatility spillover in global equity markets is required to reduce portfolio risk, this search has a substantial and viable significance.</p> Mohammad Benny Alexandri, Supriyanto Supriyanto Copyright (c) 2022 International Journal of Energy Economics and Policy https://econjournals.com/index.php/ijeep/article/view/11945 Wed, 19 Jan 2022 00:00:00 +0000 Experience and Prospects of Financing Renewable Energy Projects in Ukraine https://econjournals.com/index.php/ijeep/article/view/11999 <p>The study examined the experience of financing renewable energy projects in Ukraine. Renewable energy is one of the tools to enhance decarbonization and meet the obligations taken within the Association Agreement between Ukraine and the EU, and under the Paris Agreement. Ukraine has factors impeding the investments, resulting in a high cost of capital. Overall, there are five main options of financing theoretically available: lending, primarily with the aid of international financial institutions; funding of renewable energy projects by municipalities; voluntary associations of citizens; securities; irrevocable financial assistance. The future instruments include securities and a recently announced mechanism to finance renewable energy projects in the frame of the Green Deal. The most expansive spread option for funding renewable energy projects was lending with the help of international financial institutions. Due to the bilateral electricity market transition of Ukraine in 2019, Ukraine failed to found a model for sustainable financing of electricity from renewables, resulted in the accumulation of significant debt with the feed-in tariff payment. This fact hinders the planned and potential future investments until a sustainable model of financing is found.</p> Galyna Trypolska, Oleksiy Riabchyn Copyright (c) 2022 International Journal of Energy Economics and Policy https://econjournals.com/index.php/ijeep/article/view/11999 Wed, 19 Jan 2022 00:00:00 +0000 Competition and Merit Order Effect in the Colombian Electricity Market https://econjournals.com/index.php/ijeep/article/view/11852 <p>In this paper, we study the relationship between the merit order effect and the ownership structure of renewable resources in electricity markets. We use daily frequency data from the Colombian electricity market in 2012-2019 and designed a strategy to estimate the spot price's dependence on renewable energy. We study how the participation of multi-technology firms in renewable energy alters the spot price. Our main results show a merit order effect for the Colombian electricity market, but this weakens in the presence of greater participation of multi-technology firms in the total availability of renewable energy for the day.</p> Alex Perez, Jaime Carabali, Julian Benavides-Franco Copyright (c) 2022 International Journal of Energy Economics and Policy https://econjournals.com/index.php/ijeep/article/view/11852 Wed, 19 Jan 2022 00:00:00 +0000 Economic Impacts of Renewable Energy on the Economy of UAE https://econjournals.com/index.php/ijeep/article/view/11982 <p>This research is concerned with the study and analysis of the economic impacts of renewable energy on the UAE's economy. We took annual time series data for variables that include renewable energy consumption, per capita GDP, capital creation, employment, trade, inflation rate, interest rate, fixed exchange rate, foreign direct investment, and trade openness for the time period from 2010 to 2020. Initially, we applied the autoregressive distributed lag (ARDL) model to assess the long-term relationship between the variables. We encountered a multi-linearity problem where we found the correlation between the independent variables. Therefore, we adopted the alternative approach of the Ordinary Least Squares (OLS) technique to measure the relationship between renewable energy and the UAE economy. We have made an equation from OLS, in which we take renewable energy and economic growth as the independent and dependent variables, respectively. The results confirmed that there is a statistically significant relationship between renewable energy and the economy in the United Arab Emirates.</p> Mohammad Sulieman Jaradat, Khaled Abdalla Moh'd AL-Tamimi Copyright (c) 2022 International Journal of Energy Economics and Policy https://econjournals.com/index.php/ijeep/article/view/11982 Wed, 19 Jan 2022 00:00:00 +0000 The Impact of Oil Prices on the Stock Market and Real Exchange Rate: The Case of Kazakhstan https://econjournals.com/index.php/ijeep/article/view/11880 <p>In this study, the relationship between KASE stock market closing prices and oil prices is analyzed using ADF and Zivot-Andrews' (1992) unit root tests and monthly data for the period of 2016-2021. First, the variables are tested for causality. Results show that there is a causal relationship between the real exchange rate and closing prices and between oil prices and the real exchange rate. The short-term effects of the variables are investigated using the VAR method. Results show that Brent crude oil prices have a positive effect on KASE closing prices, while the real exchange rate has a negative effect. In conclusion, changes in oil prices affect the formation of stock prices.</p> Dinmukhamed Kelesbayev, Kundyz Myrzabekkyzy, Artur Bolganbayev, Sabit Baimaganbetov Copyright (c) 2022 International Journal of Energy Economics and Policy https://econjournals.com/index.php/ijeep/article/view/11880 Wed, 19 Jan 2022 00:00:00 +0000 Energy Equality in Indonesia Villages: A Discourse Analysis https://econjournals.com/index.php/ijeep/article/view/12641 <div class="WordSection1"> <p>This study aims to uncover the program of energy independence in Indonesia villages by the government for several decades. as a development program phenomenon of energy use and the development of its sources in the developing villages in Indonesia. The areas selected for observation are four rural areas outside Java, namely the state of Central Sulawesi, West Kalimantan, Halmahera, and East Nusa Tenggara. Interview results show that not all villagers understand energy term and there are still rural areas that do not have access to energy sources. Using discourse analysis as a qualitative method and Amartya Sen's theory of development as a freedom, this study shows that energy development still unequal in Indonesia Villages. Development as an extension of human freedom requires a more comprehensive goal. This study recommends that development plans must focus on the main rights of citizens to survive and have reason to live. Villagers have the right to obtain facilities and resources equal to those of urban residents, especially in energy access equity, and to live in prosperity.</p> </div> Elvy Maria Manurung, Mumsikah Choyri Diyanah, Paulina Permatasari, Irwanda Wisnu Wardhana Copyright (c) 2022 International Journal of Energy Economics and Policy https://econjournals.com/index.php/ijeep/article/view/12641 Wed, 19 Jan 2022 00:00:00 +0000 Analysis of the Existence of Environmental Kuznets Curve: Evidence from India https://econjournals.com/index.php/ijeep/article/view/11964 <div> <p>The study aims to estimate the Environmental Kuznets Curve (EKC) in the Indian context for the period of 1991-2018 by considering the role of economic growth, renewable energy, foreign direct investment, stock market size, energy intensity, and private investment in the energy sector with the help of autoregressive distributed lag (ARDL) cointegration technique. The results confirm the existence of an inverted U-shaped EKC relationship between economic growth and CO<sub>2 </sub>emission level. However, the estimation of turnaround point shows that CO<sub>2 </sub>levels have kept increasing past the turnaround point, indicating that income disparity is a decisive factor in determining emissions and is a better indicator than national income. Furthermore, results confirm the negative impact of economic growth and stock market size on the environment. In contrast, renewable energy, foreign direct investment, and energy intensity positively impact the environment in the long run. However, the impact of private investment is insignificant. Though the Indian economy continued to grow during the last few decades, the minimal investment towards renewable energy may not help to reduce the environmental problems. Hence, the nation's income growth alone does not solve the ecological issues in the long run. In addition, it requires an increase in private investment towards the development of India's renewable energy sector.</p> </div> Goapl Gopakumar, Ritika Jaiswal, Mayank Parashar Copyright (c) 2022 International Journal of Energy Economics and Policy https://econjournals.com/index.php/ijeep/article/view/11964 Wed, 19 Jan 2022 00:00:00 +0000 Mitigating Emissions in India: Accounting for the Role of Real Income, Renewable Energy Consumption and Investment in Energy https://econjournals.com/index.php/ijeep/article/view/12652 <p>Accomplishing environmental sustainability has become a global initiative whilst addressing climate change and its effects. Thus, there is a necessity for innovation on part of economies as they seek energy for sustainable development. Thus, we explore the case of India a highly industrialized and heavy emitter of carbon emission. To this end, this study explores the effect of renewable energy, non-renewable, economic growth, and investment in the energy sector on CO<sub>2 </sub>emission in the Indian economy. Canonical Cointegration Regression (CCR), Fully Modified Least Squares (FMOLS) and Dynamic Least Squares (DOLS) were used to access the long-run elasticity of the variables as well as Granger Causality analysis to detect the direction of causality relationship among the highlighted variables. Empirical regression shows a negative relation between CO<sub>2 </sub>emission and renewable energy. Thus, suggesting that renewable energy serves as a panacea for sustainable development in the face of economic growth trajectory. However, there was a positive relationship between CO<sub>2 </sub>emission and both non-renewable and real GDP growth. On the Granger analysis, we observe a one-way causality among renewable energy consumption and CO<sub>2</sub> emission, economic development, and energy investment. These outcomes have far-reaching policy direction of environmental sustainability target in Indian economy.</p> Festus Victor Bekun Copyright (c) 2022 International Journal of Energy Economics and Policy https://econjournals.com/index.php/ijeep/article/view/12652 Wed, 19 Jan 2022 00:00:00 +0000 Testing the Environmental Kuznets Curve Hypothesis: An Empirical Study for Peru https://econjournals.com/index.php/ijeep/article/view/11895 <p>This research analyzes the Peruvian engagement against climate change through the impact of the per capita income on the environmental pollution in the national scenario during the annual period of 1980-2019. For this, the logic of the Environmental Kuznets Curve will be used, in which an "inverted U" curve shape affirms that the economic growth is favorable for the environment in the long term because an optimal income point is reached and pollution begins to decline. For this analysis, the national exports are included as a third variable, and also is considered a cubic regression equation to the original Kuznets model. Through the estimation by Dickey-Fuller and Phillips-Perron unit root tests, Granger Causality Test, the Vector Autoregression Model (VAR) method and the Forecast Graphics, it is shown that, similar to other countries of the region, Peru is actually on the initial part of the curve, where income and pollution have a growing direct relation. Finally, the models that fitted the relationship of these variables were the original model and the model with exports included.</p> Benoit Mougenot, Rosa Pamela Durand Santa María, Claudia Lucia Koc Olcese Copyright (c) 2022 International Journal of Energy Economics and Policy https://econjournals.com/index.php/ijeep/article/view/11895 Wed, 19 Jan 2022 00:00:00 +0000 Forecasting the Energy Capacity of Petrochemical Productions Under Conditions of Technological Transformations https://econjournals.com/index.php/ijeep/article/view/12651 <p>The purpose of the study is to identify patterns of energy-saving development of the petrochemical industry in the context of the introduction of innovations and to predict the energy intensity of the industry based on economic and mathematical modeling. As part of achieving the goal, an analysis of the series of dynamics was carried out and prognostic methods based on variant correlation analysis and regression modeling were applied. At the first stage of the study, the dynamics of energy consumption and costs of innovative activities in the development of petrochemical industries in Russia was assessed; at the second stage, a predictive model of changes in the energy intensity of petrochemical industries was built. As a result of the study, the regularities of the development of petrochemical industries in Russia were revealed (stable reduction in energy consumption, unstable dynamics of unit costs for innovative activities of petrochemical industries); the nature of the influence of technological modernization of production on the level of energy intensity is determined, which is manifested in the difference in sectoral accents of innovative development; regression equations are proposed, reflecting the dependence of the energy intensity of petrochemical industries on the volume of sales of industry products; calculated the predicted values of energy intensity, allowing to develop a set of management measures to support the energy efficient development of industry in Russia. The formulated conclusions and results can serve as a basis for improving the strategic directions of development of the petrochemical industry in Russia, taking into account the prioritization of the implementation of energy-saving innovative solutions.</p> Dinara Kh. Gallyamova, Marina V. Shinkevich Copyright (c) 2022 International Journal of Energy Economics and Policy https://econjournals.com/index.php/ijeep/article/view/12651 Wed, 19 Jan 2022 00:00:00 +0000 The Impact of Oil Prices on Income in Azerbaijan https://econjournals.com/index.php/ijeep/article/view/11937 <p>Oil prices in the global market have been fluctuating sharply since the end of the XX century. As oil is a predominant component that affects global indicators, it is necessary to assess by economists. Because GDP per capita, exchange rate, and total trade turnover depend on the effects of oil price shocks. This article researched the impact oil fluctuations on income from a short and long-term perspective. For the purpose of the research, Azerbaijan has been exemplified as an oil-producing country for the period of 2001m01-2021m06. Applying the empirical method, we achieved that world oil shocks affected income (in dollar) significantly in a short perspective. The recent declining oil prices make this topic more valuable to research. Moreover, as many empirical methods show asymmetric dependency, the research focused mainly on negative shocks of oil prices.</p> Sugra Ingilab Humbatova, Natig Gadim-Ogli Hajiyev Copyright (c) 2022 International Journal of Energy Economics and Policy https://econjournals.com/index.php/ijeep/article/view/11937 Wed, 19 Jan 2022 00:00:00 +0000 Influence of Oil Factor on Economic Growth in Oil-exporting Countries https://econjournals.com/index.php/ijeep/article/view/11794 <p>Traditional types of energy resources, among which oil is primary, have a huge influence on economic development in various manifestations. In our research, we discuss dependence of economic growth in oil-exporting countries on first-order factors, such as oil prices, oil production, and structural shift in a share of oil exports. To review 2005-2019, we chose leading oil-exporting nations, including the OPEC members (Iraq, Iran, Libya, Saudi Arabia, and Nigeria), as well as countries outside this group (Russia, Kazakhstan, Azerbaijan, and Norway). Having used statistical and regression techniques, we confirm that the correlation between oil price fluctuations and economic growth raises with the scale effect. Larger economies (by absolute GDP in oil-exporting nations and hydrocarbon production) might generate more intensive economic growth from positive changes in oil prices than small economies. Also, the OPEC members show the strongest structural shifts in the change of the share of oil exports than the other countries. Resulting regression dependences led us to the conclusion that in oil-exporting countries, economic growth largely depends on an increase in oil prices and changes in oil production rates. But contrary to the expectations saying that in time of downturns, as far as global oil prices fall, nations will reduce oil exports, we observe the reverse picture – changed role of the price factor. We explain this with the keeping income-balance strategy, where the oil price parameter is a tool to choose ideal production. Our findings show that with the 1%-increase in oil production, the countries under considerations (the OPEC members) might reach GDP from 0.0367% (Iraq) to 0.437% (Libya). For countries outside OPEC, such a GDP growth might be more intensive. For instance, in Russia, it might be up to 1.559%. This also points out that the joint coordinating policy in oil production affects the economic growth potential.</p> Marina A. Osintseva Copyright (c) 2022 International Journal of Energy Economics and Policy https://econjournals.com/index.php/ijeep/article/view/11794 Wed, 19 Jan 2022 00:00:00 +0000 Policy Challenges of Indonesia's Local Content Requirements on Power Generation and Turbine Production Capability https://econjournals.com/index.php/ijeep/article/view/12504 <p>The demand for electricity in Indonesia will continue to increase. Thus, the market opportunity for the power generation industry needs to be optimally utilized by domestic business actors through the Local Content Requirements (LCR) policy. Through exploratory techniques, the primary goal of this research is to assess the capability of Indonesia's national turbine industries and research institutions, as well as to develop policy recommendations for maximizing the use of local content in order to comply with the Ministry of Industry's Domestic Component Level Regulation, also known as Local Content Requirements (LCR). There are at least three challenges that need attention, namely technology capability and efforts, infrastructure, and institution. Although Indonesia has good prospects and opportunities to develop large-scale turbines, the challenges ahead in developing coal-fired turbines will be more complex due to the strengthening of the clean development paradigm. Thus, it is important to rethink the direction of developing LCR policies for coal-fired turbines. The study recommended budget allocation for ensuring continuity of turbine prototyping, simplify the process to obtain technology licensing, and developing industries that can support materials for turbine industries. </p> Rislima Febriani Sitompul, Endri Endri, Sawarni Hasibuan, Choesnul Jaqin, Arum Indrasari, Lia Putriyana Copyright (c) 2022 International Journal of Energy Economics and Policy https://econjournals.com/index.php/ijeep/article/view/12504 Wed, 19 Jan 2022 00:00:00 +0000 The Indirect Effects of Oil Price on Consumption Through Assets https://econjournals.com/index.php/ijeep/article/view/12528 <p>This research considers how oil price can indirectly affect consumption through asset prices of stock and house. Using the theory of consumption wealth effect, this research shows that, unexpectedly, a rise in oil price would lead to increase in consumption. The research uses the data of three OECD countries of France, Canada and the United States from quarter 1st 1997 to quarter 3rd 2017 and vector autoregression model. Empirical results prove that a positive shock to oil price has a positive indirect effect on consumptions of France and Canada via both asset prices. The indirect effect of oil price on US consumption only exists through stock price. The duration of indirect effect of oil price on consumption depends on dependency of consumption to asset prices in each country.</p> Seyedeh Fatemeh Razmi, Leila Torki, Seyed Mohammad Javad Razmi, Ehsan Mohaghegh Dowlatabadi Copyright (c) 2022 International Journal of Energy Economics and Policy https://econjournals.com/index.php/ijeep/article/view/12528 Wed, 19 Jan 2022 00:00:00 +0000 The Effect of Financial Development on Energy Consumption: Evidence from Russia https://econjournals.com/index.php/ijeep/article/view/12534 <p class="MDPI16affiliation"><strong> </strong>This paper explores the effect of financial development, economic growth, and energy prices represented by consumer price index (CPI) on energy consumption in Russia by performing VECM, CCR, DOLS and FMOLS analyses to the annual data from 1995 to 2019. The findings of this empirical analysis reveal that financial development and economic growth have positive impact on energy consumption in Russia. Furthermore, the effects of energy prices expressed by CPI is revealed to be negative, which is consistent with the theory and expectations in practice. Based on the findings of this study, the nexus and impacts of financial development on energy consumption are discussed, as well as plausible explanations and policy implications.</p> Shahriyar Mukhtarov, Rıdvan Karacan, Fuzuli Aliyev, Vuqar Ismayilov Copyright (c) 2022 International Journal of Energy Economics and Policy https://econjournals.com/index.php/ijeep/article/view/12534 Wed, 19 Jan 2022 00:00:00 +0000 Carbon Dioxide Emissions from Electricity Power Generation and Economic Growth in South Africa https://econjournals.com/index.php/ijeep/article/view/12540 <p>This study analyses the relationship between CO2 emissions from electricity generation and economic growth in South Africa. The study utilises annual time series data spanning for the period from 1971 to 2014 sourced from the World Bank. The study employs a Vector Error Correction Model (VECM) to analyse the short run and long run relationships. Empirical results revealed that there is a negative statistically insignificant short run relationship and long run negative statistically significant relationship between CO2 emissions and economic growth in South Africa. The Granger causality results revealed noncausal relationship between CO2 and economic growth. The policy implication of this study is that Eskom and policy makers must propose and implement policies aimed at reducing CO2 emissions from electricity generation as it will improve economic growth in South Africa.</p> Nyiko Worship Hlongwane, Olebogeng David Daw Copyright (c) 2022 International Journal of Energy Economics and Policy https://econjournals.com/index.php/ijeep/article/view/12540 Wed, 19 Jan 2022 00:00:00 +0000 Armenian Energy System Development: The Prospects of EAEU Single Energy Market https://econjournals.com/index.php/ijeep/article/view/12585 <p>Armenia today is a country with significant energy and economic issues. The country has come over a difficult period of military conflict, it's highly dependent on imports of energy resources, the national energy system is out-of-date. The energy issues require significant financial investments, which can't be provided in the current conditions. This defines the theoretical and practical significance of the research, especially in the context of the need for reforms in energy sector and in economy in general. In addition to that Armenia is isolated from EAEU single energy market, which proves to be a problem for the country. The authors focused on the analysis of weak and strong points of the Armenian energy industry, revealing and proving, that the current situation harms economic development of the country. The key strong points revealed are the willingness of cooperation with Russia, readiness for the green transformation, access to the international financial market, readiness of the legal framework. Based on these findings and on the econometric model, that proves that natural gas, oil and hydroenergy are the most significant energy resources for the GDP of the country, contributing to its growth, the authors have developed recommendations for the development of the Armenian energy industry, taking into account the poor situation with financial resources in the country in general and the dependency of Armenian energy system on the Russian energy sector companies.</p> Elizaveta S. Sokolova, Olga V. Panina, Natalia L. Krasyukova, Nikolay P. Kushchev Copyright (c) 2022 International Journal of Energy Economics and Policy https://econjournals.com/index.php/ijeep/article/view/12585 Wed, 19 Jan 2022 00:00:00 +0000 Consumption and Supply of Electricity on Economic Growth in South Africa: An Econometric Approach https://econjournals.com/index.php/ijeep/article/view/12542 <p>This study investigates the relationship between electricity consumption and electricity supply on economic growth in South Africa for the period spanning from 1971 to 2014. The importance of this study is to reveal the short run and long run impact of electricity consumption and electricity supply on economic growth in South Africa. The study borrowed annual time series data from the World Bank online secondary source for the period from 1971 to 2014. Empirical results revealed a positive statistically significant short run relationship and a negative statistically insignificant long run relationship between electricity consumption and economic growth. The results further reveal that renewable electricity has a short run negative statistically significant and positive statistically significant long-run relationship with economic growth in South Africa. Based on empirical results, it can therefore be recommended that the policymakers should implement policies that promotes renewable electricity generation and evaluate policies on electricity consumption so that it can significantly boosts economic growth in the long run.</p> Sanele Stungwa, Nyiko Worship Hlongwane, Olebogeng David Daw Copyright (c) 2022 International Journal of Energy Economics and Policy https://econjournals.com/index.php/ijeep/article/view/12542 Wed, 19 Jan 2022 00:00:00 +0000 The Effect of Crude Oil Prices and Internet on Economic Growth in Timor Leste https://econjournals.com/index.php/ijeep/article/view/11992 <p>Continuous economic growth improves the welfare and the living standards of the people. However, for a country to experience economic growth, several factors come into play, including resource endowment, economic policies, political stability, and more. This research aimed to examine the effect of crude oil prices and internet on economic growth in Timor Leste. An autoregressive distributed lag model was used to analyze the time series data from 2005-2020. The cointegration test results showed that crude oil prices, internet, and economic growth are cointegrated. Based on the model coefficients, the estimation results revealed crude oil prices and internet have a significant effect on the country's long-term and short-term economic growth. The long-term effect of crude oil prices on economic growth is negative. In every 1% increase of crude oil prices, there is a 10.3% decrease in economic growth. A 1% reduction in crude oil prices leads to a 10.3% economic growth. Furthermore, the long-term effect of the internet has a long-term positive effect on economic growth. Every 1% internet increase, there is a corresponding 27.65% increase in economic growth.</p> Wali Aya Rumbia, Abd Azis Muthalib, Pasrun Adam, Asrul Jabani, Yuwanda Purnamasari Pasrun, Dzulfikri Azis Muthalib Copyright (c) 2022 International Journal of Energy Economics and Policy https://econjournals.com/index.php/ijeep/article/view/11992 Wed, 19 Jan 2022 00:00:00 +0000 Testing the Causal Relationship between Economic Growth and Renewable Energy Consumption: Evidence from a Panel of EAGLE Countries https://econjournals.com/index.php/ijeep/article/view/11851 <p><em> </em>Economic growth and energy consumption are two main factors that play a vital role in any country's overall development. The researchers built and described different econometric models to evaluate the relationship between the two variables. In this research, we chose 15 emerging economy countries to examine the relationship between renewable energy consumption and economic growth. We applied the panel ARDL approach with PMG estimator which one of the best approaches to model long-term and short-term dynamics. Gross domestic product per capita and renewable energy consumption as a percent of total final energy consumption has a positive and significant coefficient when used as an independent variable in the long run. We also checked causality between the variables to test how the causal relationship occurs. We also found a causal relation from economic growth to renewable energy consumption, thus proving the conservation hypothesis. However, our outcome showed that the relationship is not statistically significant between renewable energy and economic growth in the short run. Finally, we pointed out few policy recommendations and future work directions based on our works at the end of this article.</p> Meshkatus Salehin, Judit T. Kiss Copyright (c) 2022 International Journal of Energy Economics and Policy https://econjournals.com/index.php/ijeep/article/view/11851 Wed, 19 Jan 2022 00:00:00 +0000 Can the Heston Model Forecast Energy Generation? A Systematic Literature Review https://econjournals.com/index.php/ijeep/article/view/11975 <p>The ability to predict the price of stock exchange assets has attracted the attention of economists and physicists around the world, as physical models are useful to predict volatility behaviors. Knowing that volatility is crucial for energy sector planning, the research aim was to investigate whether the Heston pricing model is useful to predict energy generation, trough the steps established by the systematic review protocol. In a corpus of 25 documents, it was possible to identify: lots of financial studies, energy and demography researches; a low level of interaction among universities; the largest number of publications from Australia and China; the most important journal; and the advantages of applying Econophysics models to solve volatility problems. In conclusion, the Heston model can be applied to predict energy generation, since it is a closed-form model and capable of modeling the stochastic volatility, reversing it to the predicted value of average energy generation.</p> Bianca Reichert, Adriano Mendonça Souza Copyright (c) 2022 International Journal of Energy Economics and Policy https://econjournals.com/index.php/ijeep/article/view/11975 Wed, 19 Jan 2022 00:00:00 +0000 Disaggregate Energy Consumption and Economic Growth in Pakistan: A Sectoral Analysis https://econjournals.com/index.php/ijeep/article/view/11615 <p>This study analyzes the relationship between disaggregate energy consumption i.e. oil, coal, gas, and electricity consumption in different sectors with economic growth. The study uses annual time series data of Pakistan from 1972 to 2016 and applies ARDL bound test for cointegration, while Granger causality test is used for short run causality. Results showed that oil consumption in industrial and transport sector, gas consumption in fertilizer and power sector, and electricity consumption in industrial sector have positive and significant impact on economic growth in the long run. However, oil consumption in agricultural and power sector, coal consumption in power and brick kilns sector, gas consumption in cement sector, and electricity consumption in agricultural sector have negative and significant impact on economic growth. However, no causality exists between oil consumption and economic growth, while unidirectional causality exists from economic growth to coal consumption in brick kilns sector, gas consumption in industrial sector, and electricity consumption in agricultural sector in the short run. For sustainable energy supply, reduce the consumption of oil and coal to indigenously available resources, however, for sustainable economic growth, encourage industrial sector to use electricity, while fertilizer and power sector to use gas.</p> Kashif Munir, Sana Nadeem Copyright (c) 2022 International Journal of Energy Economics and Policy https://econjournals.com/index.php/ijeep/article/view/11615 Wed, 19 Jan 2022 00:00:00 +0000 Inter-sector Inter-Region Model for Russian Economy: Methodology and Application https://econjournals.com/index.php/ijeep/article/view/11859 <p>The paper presented is intended to analyze an approach to a long-term inter-sector and inter-regional economic analysis as based on an optimization model. This approach was developed in IEIE SB RAS and resulted in several directions of application. One of them is investigation of interactions between a national economy and its energy production segment. The model being discussed includes input-output tables for six regions of Russian economy supplemented with model blocks for interregional transportations. It includes a natural block of energy production, processing and transportation. The last version of this model combines 45 products of different economic sectors including 8 ones of an energy sector (rough oil, gas and coal, two kinds of petroleum products, coal processing, electricity and heat), and 6 Russian macro-regions; it is a composition of two sub-models for 2 time periods: 2008<strong>-</strong>2020 and 2021-2030. Each of the sub-models treats time changes in simplified manner – it means that all the variables are defined for the last year of the period and the variables of the basic year are fixed as exogenous ones. The dynamics of investments into fixed capital is treated as non-linear functions being adapted with the help of linearization techniques.</p> Nikita Suslov, Vladimir Buzulutskov, Ekaterina Isupova Copyright (c) 2022 International Journal of Energy Economics and Policy https://econjournals.com/index.php/ijeep/article/view/11859 Wed, 19 Jan 2022 00:00:00 +0000 Impact of Green Energy Production, Green Innovation, Financial Development on Environment Quality: A Role of Country Governance in Pakistan https://econjournals.com/index.php/ijeep/article/view/11986 <p>The study aims to analyze the contributions of green innovation, green energy production, and financial development to environmental quality with the moderating role of country governance. The study collects data from a panel of five South Asian economies from 2000 to 2018. The paper includes CIPS, a second-generation unit root to test the data's stationarity, and the Westerlund co-integration to investigate the long-term relationship between determinants. The Fully Modified and Dynamic Ordinary Least Square is applied to estimate the long-run coefficient and test the hypothesized relationship between selected determinants. The study finds that green innovation and green energy production negatively (positively) contribute to environmental degradation (environment sustainability). Moreover, financial development has a substantial impact on environmental degradation and sustainability, as per the findings. The study further finds a significant role of country governance in the relationship between green innovation, green energy production, environmental degradation, and environmental sustainability. Furthermore, country governance is improving the link between financial development and environmental degradation, and long-term sustainability.</p> Aamir Inam Bhutta, Muhammad Rizwan Ullah, Jahanzaib Sultan, Ahsan Riaz, Muhammad Fayyaz Sheikh Copyright (c) 2022 International Journal of Energy Economics and Policy https://econjournals.com/index.php/ijeep/article/view/11986 Wed, 19 Jan 2022 00:00:00 +0000 The Ability of Green Open Spaces in Greenhouse Gas Control to Achieve Green Cities in Kendari City https://econjournals.com/index.php/ijeep/article/view/11980 <p>The urban challenge in realizing a green city for the purpose of a sustainable city is air pollution resulting from vehicle emissions (Carbon monoxide/ CO<sub>2</sub>). Reducing vehicle emissions can be done by providing green open spaces. In Kendari City, a potential area for the development of green open space is the Bahteramas General Hospital. Activities in the area and around the Bahteramas General Hospital in Kendari City are quite high so that they contribute to emissions (CO<sub>2</sub>). The object of research analysis is the number of vehicles (daily traffic), the capacity of electricity use, the area of the Bahteramas General Hospital and the area of the existing green open space. The results showed that the type of vehicle that contributes high to CO<sub>2</sub> is a motorcycle. The use of fuel as a source of emission (CO<sub>2</sub>) which contributes to premium types of greenhouse gases, diesel and the use of electrical energy. The absorption capacity of the existing green open space has not been able to reduce CO<sub>2</sub> emissions, so it is necessary to expand the green open space to control greenhouse gases.</p> Hasddin Hasddin, Abd Azis Muthalib, Edward Ngii, Asrip Putera Copyright (c) 2022 International Journal of Energy Economics and Policy https://econjournals.com/index.php/ijeep/article/view/11980 Wed, 19 Jan 2022 00:00:00 +0000 Eastern Mediterranean Area in Energy Security of The European Union: From Sea Border Issues to Economic Conflicts of Interest https://econjournals.com/index.php/ijeep/article/view/12602 <p>The interdependence experienced on a global scale today has gained more importance with the increasing demand for energy resources. The situation of interdependence may cause various conflicts due to the differences in strategy between countries regarding access to energy resources. In this destructive competitive environment, hydrocarbons, especially natural gas, continue to be an essential means of competition as a strategic energy source. This situation makes the European Union and the countries that are the suppliers of the energy demand of the Union and the transition countries dependent on each other. This situation of interdependence makes energy resources the most important policy tool. Russia, one of the energy suppliers of European states, uses this advantage as an essential political pressure tool. European Union countries turn to alternative resources and areas to reduce dependency in the face of this situation. In recent years, the Eastern Mediterranean basin has been added to these areas. With the discovery of significant hydrocarbon resources in the Eastern Mediterranean, the importance of this region for European countries is increasing. However, this situation causes maritime border disputes and geopolitical conflicts between the countries of the region. This conceptual study emphasizes the solution of problems related to cross-border hydrocarbon resources and the extent to which natural gas reserves in the Eastern Mediterranean will be an alternative to Russian natural gas.</p> Hasan Tutar, Teymur Sarkhanov, Nigar Guliyeva Copyright (c) 2022 International Journal of Energy Economics and Policy https://econjournals.com/index.php/ijeep/article/view/12602 Wed, 19 Jan 2022 00:00:00 +0000 Techno-Economic Analysis of Municipal Solid Waste Gasification for Electricity Generation https://econjournals.com/index.php/ijeep/article/view/11894 <p>Due to an overburdened national grid, chronic energy challenges, and the growing municipal solid waste menace, a unique opportunity to deploy waste-to-energy technology in Ghana is apparent. A techno-economic analysis was performed for meeting the primary electrical load of selected blocks at the University of Energy and Natural Resources through Municipal Solid Waste gasification. Three scenarios were simulated and assessed based on their Net Present Costs (NPC) and Levelised Cost of Energy (LCOE): a gasifier-standalone system, a grid-tied gasifier system and a grid-alone system. The grid-tied gasifier system was found to meet the 230.1kWh/day electrical load at the least NPC ($2, 049790.00) and COE ($0.09426/kWh). The sensitivity analysis showed that the load factor, sell-back price of electricity and cost/ton of MSW had the most impact on the NPC of the gasification system. MSW gasification is, therefore, an economically viable alternative if grid-integrated. Finally, the study showed that Feed-in Tariffs, plant siting and demand response strategies are crucial to ensuring the cost-effectiveness of gasification systems.</p> Ali Eliasu, Nana Sarfo Agyemang Derkyi, Samuel Gyamfi Copyright (c) 2022 International Journal of Energy Economics and Policy https://econjournals.com/index.php/ijeep/article/view/11894 Wed, 19 Jan 2022 00:00:00 +0000 The Role of Renewable Energy Investment on Achieving Economic Growth at the Gulf Cooperation Council Countries https://econjournals.com/index.php/ijeep/article/view/12498 <p>Study aims to investigate the renewable energy investment effect on achieving the economic growth (EG) at countries of Gulf Cooperation Council (GCC) for the period of 2010–2019. The percentage of renewable energy investment of total investments is an explanatory variable, and EG is a dependent variable. This research focuses on analyzing literature review to demonstrate how investment in renewable energy impacts the achievement of EG, and it also tries to explain this effect in the GCC countries for this period by utilizing Regression Analysis in E-Views. The research reaches significant and positive effect of renewable energy investment on EG at UAE, KSA, and Qatar but showed insignificant effect of renewable energy investment on EG in Bahrain, Kuwait, and Oman for the period (2010–2019).</p> Mohammad Sulieman Mohammad Jaradat Copyright (c) 2022 International Journal of Energy Economics and Policy https://econjournals.com/index.php/ijeep/article/view/12498 Wed, 19 Jan 2022 00:00:00 +0000 Decomposition Factors Household Energy Subsidy Consumption in Indonesia: Kaya Identity and Logarithmic Mean Divisia Index Approach https://econjournals.com/index.php/ijeep/article/view/12629 <p>For decades, the subsidy had prompted excessive and wasteful while offering little motivation to boost energy efficiency or reduce domestic greenhouse gas emissions. This paper aimed to measure household subsidy energy by examining the relationship between the other ten variables. The Logarithmic Mean Divisia Index (LMDI) and decomposition index were deployed to recognize the determinant effects that drive household's subsidy energy consumption. This study also presented an ARDL model applied. The robustness of the Granger Causality, Long-run, and Short-run causality during 1990-2017 was assessed. Based on LMDI, we found out that Population, Income Per Capita, Ratio National Renewal Energy over Fuel Fossil, Gross Capital Stock, Urban Household Consumption, and Ratio Household Subsidy were the positive factors that aggravate the change in household energy subsidy. The negative sign of Ratio National Energy Intensity effect, Ratio Fossil Renewal Energy effect, Ratio Capital Labour substitution, and Ratio Household over Labour Force signified the decreasing significance of less household energy subsidy. On the ECM, we identified a negative sign speed-of-adjustment and significant at 1%. It implied that all the ten variable effects were converging in the long run after an experience shocks. The equation parameters were considered stable since the CUSUM gets inside the two critical lines. Additional RESET test of the stability to ascertain whether the estimated model was linear or correctly specified has been performed.</p> Eka Sudarmaji, Noer Azam Achsani, Yandra Arkeman, Idqan Fahmi Copyright (c) 2022 International Journal of Energy Economics and Policy https://econjournals.com/index.php/ijeep/article/view/12629 Wed, 19 Jan 2022 00:00:00 +0000 Some Methodological Considerations for the relationship between Environmental Degradation, Economic Growth and Energy Consumption for South Asian Countries https://econjournals.com/index.php/ijeep/article/view/11947 <p>The present study is designed to investigate that how Economic Growth (EG) of the South Asian region has affected the Environmental Degradation (ED) from 1980 to 2018. This study has used Newey and West (1987) robust standard errors approach to overcome the problem of autocorrelation and heteroskedasticity in panel data. The results of the statistical model confirmed the existence of the Inverted U-shaped Environmental Kuznets Curve (EKC). Furthermore, the results also confirmed that the use of energy is also deteriorating the environment significantly. One significant contribution of the study is to check the causality between EG and CO<sub>2</sub> by applying a relatively new approach namely Granger non-causality test presented by Dumitrescu and Hurlin (2012). The results confirmed that economic growth is contributing towards more CO<sub>2</sub> emissions. The study concluded that South Asian countries should use environment-friendly renewable energy sources to achieve a higher growth rate.</p> Atif Khan Jadoon, Ambreen Sarwar, Hafiz Muhammad Qasim, Maria Faiq Javaid, Saima Liaqat, Munazza Ahmed Copyright (c) 2022 International Journal of Energy Economics and Policy https://econjournals.com/index.php/ijeep/article/view/11947 Wed, 19 Jan 2022 00:00:00 +0000 Regime Switching Mechanism during Energy Futures' Price Bubbles https://econjournals.com/index.php/ijeep/article/view/12549 <p>In the last twenty years, many huge ups and downs have been seen in not only oil prices but also in other spot and derivative' energy prices too. This study has two main purposes. The main purpose of the study is to detect bubbles and their beginning and ending dates in energy derivatives futures prices. Crude oil WTI, natural gas, and heating oil monthly prices are analyzed for the period beginning from 1990 to 2018. Following detecting bubbles, Markov Regime Switching Autoregressive (MSAR) models and Markov Regime Switching Vector Autoregressive (MSVAR) models are used to analyze the movement of the regime-switching mechanism between the bubble dates. The general evidence indicates that the switching mechanism during bubble periods has some mutual similarities as generally their direction is to regime 1 as recession with low/negative returns and high volatility. Following positive return periods in energy prices, mostly after the high return/high volatility periods, the market actors might face bubble collapses.</p> Ayben Koy Copyright (c) 2022 International Journal of Energy Economics and Policy https://econjournals.com/index.php/ijeep/article/view/12549 Wed, 19 Jan 2022 00:00:00 +0000 The Impact of Urbanization on Energy Demand: An Empirical Evidence from Somalia https://econjournals.com/index.php/ijeep/article/view/11823 <p>Somalia is recovering from a long-period of civil unrest and political instability. The urbanized population are growing at unprecedented growth rate which ultimately results in an increase in energy demand. To this end, this study assesses the effect of urbanization on energy demand in Somalia while controlling the effects of economic growth and population growth. To achieve the aim, the study employs fully modified ordinary least square (FMOLS), canonical cointegration regression (CCR) and impulse response function (IRF) with time series data spanning from 1990 to 2018. Before the long-run model estimation, the study utilizes Augmented Dickey-Fuller (ADF) and Philips’s Perron (PP) tests to check the unit root problem, and they demonstrate that all the variables are stationary at first difference I (1). Furthermore, the empirical results indicate that urbanization impedes energy consumption, whereas economic growth and population growth increase energy demand in the long-run. Besides, the result of IRF demonstrate that one standard deviation shock in urbanization (lnUB) results in energy consumption to decrease (lnEC) in the whole 10 periods. This calls for the Somali policy makers to consider urbanization as an effective determinant while targeting energy conservation policy in order to mitigate the fossil fuel energy use.</p> Abdimalik Ali Warsame Copyright (c) 2022 International Journal of Energy Economics and Policy https://econjournals.com/index.php/ijeep/article/view/11823 Wed, 19 Jan 2022 00:00:00 +0000 Indonesian Coal Exports: Dynamic Panel Analysis Approach https://econjournals.com/index.php/ijeep/article/view/11978 <div> <p>Coal is a mineral fuel commodity considered important as a source ofenergy and is traded among countries. Indonesia is one of the largest coal producing countries in the world. This study aimed to analyse the relationship between the net export volume, GDP per capita of destination countries, real exchange rate, and Indonesian coal export prices. The existence of a causal relationship between exports and economic growth shows that there is a relationship between net exports and future economic growth. Economic growth is an increase in people's per capita income without paying attention to changes in the economic structure.The study uses panel data of 5 biggest coal trading partner countries of Indonesia during the period 2015-2019, by using the dynamic panel analysis method, where a dependent variable is not only determined by the value of independent variables at the research period, but is also determined by the value of previous period. The dynamic panel method is characterized by the lag of the dependent variable which is correlated with the residual among the independent variables. The dynamic panel data regression method can be used to determine the short-term effect,and the long-term effect as well.Based on the estimation results of the Generalized Method of Moment (GMM) Arellano Bond, in the study period the exchange rate and export prices had a significant negative effect on the volume of Indonesian coal exports. GDP per capita has no significant effect on the volume of Indonesia's coal exports.Furthermore, the short-term elasticity approach for the exchange rate is -0.029159 and for the long term is 0.3616521. These results indicate that the calculation of the short-term and long-term elasticity of the exchange rate (ER) is inelastic and negative with different magnitudes. In addition, it explains that in the short term an increase in the exchange rate of 1 percent will reduce net exports in the short term by 2.9 percent.</p> </div> Ambya Ambya, Lies Maria Hamzah Copyright (c) 2022 International Journal of Energy Economics and Policy https://econjournals.com/index.php/ijeep/article/view/11978 Wed, 19 Jan 2022 00:00:00 +0000 Energy-Growth Nexus in Indonesia: Fresh Evidence from Asymmetric Causality Test https://econjournals.com/index.php/ijeep/article/view/11837 <p>The purpose of this study is to examine the causality between energy consumption and economic growth with an asymmetric causality approach in Indonesia. Data used from 1971-2014. Asymmetric causality using the Hatemi-J method (2012). Bootstrap simulation is also implemented because the data is not normally distributed and there is volatility to get a more reliable critical value than using asymptotic values. The first finding is that classical causality with Toda-Yamamoto finds no relationship between energy consumption and economic growth in Indonesia. The second finding shows that asymmetric causality shows no relationship between energy consumption and economic growth on a positive cumulative basis. However, the third finding obtained a bidirectional in negative cumulative. It is known that the impact of a decrease in energy consumption is greater on a decrease in economic growth than vice versa. Based on these findings, energy consumption in Indonesia has reached an optimal point so that additional energy consumption does not have an impact on economic growth. However, efforts to stabilize energy and economic growth are urgently needed.</p> Ikhsan Ikhsan, Kamal Fachrurrozi, Muhammad Nasir, Elfiana Elfiana, Nurjannah Nurjannah Copyright (c) 2022 International Journal of Energy Economics and Policy https://econjournals.com/index.php/ijeep/article/view/11837 Wed, 19 Jan 2022 00:00:00 +0000 The Optimization Using Electric Ground Support Equipment in Aviation Industry https://econjournals.com/index.php/ijeep/article/view/11711 <div><p>An airport is one of the country's infrastructures that provides air transportation services. In providing its services, To ensure aircraft safety, airports must conform to a set of international technical operating standards and planned operating procedures. In addition, airports also have a social responsibility to prevent pollution and support eco green. Therefore, this study aims to conduct a benefit cost analysis using electric ground support equipment in aviation industry, both for using e-GSE using diesel and using e-GSE using electricity. The method used in this research is the Benefit Cost Ratio method. Based on the research results, it shows that the use of e-GSE using both diesel and electricity is feasible because it has an net present value (NPV) value of more than 0. However, when compared with the assumption of 25 years of use, the use of e-GSE using diesel is considered more profitable than using electricity.</p></div> Mustika Sari, Wan Mazlina Wan Mohamed, Siti Ayu Jalil Copyright (c) 2022 International Journal of Energy Economics and Policy https://econjournals.com/index.php/ijeep/article/view/11711 Wed, 19 Jan 2022 00:00:00 +0000 Asymmetric Effect of Renewable Energy Generation and Clean Energy on Green Economy Stock Price: A Nonlinear ARDL Approach https://econjournals.com/index.php/ijeep/article/view/12754 <p>This paper examines the asymmetric impact renewable energy generation and clean energy prices on green economy stock prices by employing monthly data for all three indices end on 2021M07, and start on 2010M12. The nonlinear ARDL approach (NARDL) is applied in order to find short-run and long-run asymmetries. The empirical results indicate that renewable energy generation significant negative impact on green economy stock prices. For the clean energy prices have a positive and negative significant impact on green economy stock prices in selected markets under concern. The short-run coefficients of clean energy stock prices have a significant positive affect on green economy stock prices. The Wald test results confirmed the green economy stock price adjustment is running towards the long- and short-run steady increment regarding positive and negative shocks in renewable energy generation and clean energy. Finally, the dynamic multipliers showed that prices of renewable energy generation have a positive (negative) impact on green economy stock prices. Indeed, clean energy prices respond quickly to the changes (both positive and negative) on green economy prices in all selected markets. In sum, the negative shocks dominate positive shocks in renewable energy generation and clean energy, and results indicate that a positive and negative relationship was noted between these covariates and green economy stock prices.</p> Avazkhodjaev Salokhiddin Shakhabiddinovich, Noor Azuddin bin Yakob, Lau Wee Yeap Copyright (c) 2022 International Journal of Energy Economics and Policy https://econjournals.com/index.php/ijeep/article/view/12754 Wed, 19 Jan 2022 00:00:00 +0000 The Relationship between Renewable Energy Consumption and Economic Growth in Azerbaijan https://econjournals.com/index.php/ijeep/article/view/11948 <p>This article examines the causal relationship between renewable energy consumption and economic growth in case of Azerbaijan using annual data from 1992 to 2015. The Toda-Yamamoto causality test framework of vector autoregressive (VAR) model is utilized to test causal relationship between the variables. The results of this test reveal that there is unidirectional causality running from economic growth to renewable energy consumption. The study's findings might be a helpful tool for Azerbaijani policymakers and oil-rich economies to make renewable energy-related policy decisions.</p> Shahriyar Mukhtarov Copyright (c) 2022 International Journal of Energy Economics and Policy https://econjournals.com/index.php/ijeep/article/view/11948 Wed, 19 Jan 2022 00:00:00 +0000 Investigating the Impact of Oil Prices Changes on Financial Market Efficiency in Saudi Arabia for the Period (1980-2018): ARDL Approach https://econjournals.com/index.php/ijeep/article/view/12769 <p>The impact of macroeconomic variables on the financial market efficiency has been a hot topic for decades. Thus, this study investigates the effect of oil price changes on the financial market performance using the estimation of Auto-Regressive Distributed Lag (ARDL) technique in Saudi Arabia for the period 1980-2018. The results revealed a long-run causality between the exchange rate, return on investment, and oil prices towards the financial market efficiency. However, only inflation and return on investment have causality effects on financial market efficiency in the short run. In addition, the exchange rate and oil price do not have causality running to economic market efficiency. Thus, both the short-run and long-run causality effects should be considered as guidelines to be followed by policymakers to avoid any misleading macroeconomic strategies in future strategic planning. The speed of adjustment reported from estimating the Conditional Error Correction Regression is (-0.114527).&nbsp; Also, the model was found stable from using both the CUSUM and CUSUMQ statistics.</p> Saif Sallam Alhakimi, Hussein Hussein Hamood Sharaf-Addin Copyright (c) 2022 International Journal of Energy Economics and Policy https://econjournals.com/index.php/ijeep/article/view/12769 Wed, 19 Jan 2022 00:00:00 +0000 The Effects of Gross Domestic Product and Energy Consumption on Carbon Dioxide Emission in Uganda (1986-2018) https://econjournals.com/index.php/ijeep/article/view/12552 <p>This study examines the effects of energy consumption and per capita gross domestic product on carbon dioxide emission which is a precursor for global warming due to its large scale impact on the environment. The effect of per capita gross domestic product and per capita energy consumption on carbon emission per capita in Uganda is not clearly known. This study fill the empirical gap for Uganda for 1986-2018. The study used Vector Error Correction techniques and the results suggest evidence of a long-run relationship between the variables at a 5% significance level using the Johansen cointegration test. The estimated elasticity of carbon dioxide emission per capita with respect to gross domestic product per capita is 1.856.The results for the existence and direction of Granger causality show a unidirectional causality running from gross domestic product per capita to carbon dioxide emission per capita and the environmental Kuznets curve hypothesis is supported. In addition, there is no causal link between energy consumption per capita and gross domestic product per capita, which supports the growth neutrality hypothesis. The overall results indicate that gross domestic product per capita has a positive effect on carbon dioxide emission in Uganda while energy consumption does not Granger cause carbon dioxide emission.</p> Jacob Otim, Geoffrey Mutumba, Susan Watundu, Geoffrey Mubiinzi, Milly Kaddu Copyright (c) 2022 International Journal of Energy Economics and Policy https://econjournals.com/index.php/ijeep/article/view/12552 Wed, 19 Jan 2022 00:00:00 +0000 Nexus between Sources of Electricity Production and Environmental Degradation in Context of EKC Hypothesis: A Time Series Study for Pakistan https://econjournals.com/index.php/ijeep/article/view/12495 This time series study is carried out to determine effect of sources of electricity production on environmental degradation in Pakistan in context of environmental Kuznets curve (EKC) hypothesis. Moreover, this study also examines effect of rural and urban population on environmental degradation. This study considers carbon emissions from electricity and heat as a proxy for environmental degradation. Unit root tests are applied to determine level of integration of time series variables. Bounds test is applied to examine long run relationship among variables. This study finds that hydro, natural gas and nuclear sources of electricity production have negative significant effect on environmental degradation whereas electricity production from oil sources has positive and significant effect on environmental degradation. Electricity from coal has positive effect on environmental degradation but its effect is not significant. Results of the study confirms EKC hypothesis in Pakistan. Besides, results indicate that rural population and urban population is negatively and positively associated with environmental degradation respectively. This study suggests that energy policy has to be design in such manner that on one hand, it tackles energy crisis, on other hand, it leads to sustainable development in Pakistan. Ihtisham ul Haq, Bakhitbay Embergenov, Piratdin Allayarov Copyright (c) 2022 International Journal of Energy Economics and Policy https://econjournals.com/index.php/ijeep/article/view/12495 Wed, 19 Jan 2022 00:00:00 +0000 Measuring the Impact of Air Pollutants on Ecological Footprint, Forest Area and Cropland https://econjournals.com/index.php/ijeep/article/view/12631 <p>The purpose of this study is to investigate the impact of air pollutants including carbon dioxide emissions (CO<sub>2</sub>), Nitrogen oxides (NOx) and nitrous oxide (NO<sub>2</sub>) over the period 1975 to 2020 on ecological footprint, Forest area and cropland. The study used GDP and trade openness as control variable in establishing the long run and short relationship between air pollutants and ecological footprint and its sub-components. The study used Johannsson co-integration and error correction model co-integrating relationship and elasticities. The study found that there exist at least three cointegrating equations for ecological footprint and forest area while four cointegrating equation for cropland. The results shows that model CO2, NO2 and TOP reduces the pressure on EF in long run while NOx and GDP damage the EF by utilizing more natural resources during production of goods and services. However, CO2 concentration increases as forest area increases while NOx damage the cropland. The ECM shows that speed of adjustment is 90% for forest area and 50% and 40% for EF and cropland respectively. Carbon overdose is mainly caused by fossil fuel burning and forest destruction, which continuously accumulates as a result of industrialization. The study found that pollutants, such as CO2, NO2 and NOx also potential to damage ecosystems and only clean air is a desirable policy option for green economy.</p> Muhammad Irfan, Jacob Cherian, Abdul Aziz Abdul Rahman, Akram M. Haddad, Muhammad Safdar Sial, Basit Ali, Talles Vianna Brugni Copyright (c) 2022 International Journal of Energy Economics and Policy https://econjournals.com/index.php/ijeep/article/view/12631 Wed, 19 Jan 2022 00:00:00 +0000 Effect of Foreign Direct Investment on Energy consumption: Does Institutional Quality matter? Evidence from Cote d'Ivoire https://econjournals.com/index.php/ijeep/article/view/11907 <p>This paper examines the role played by institutional quality in the relationship between foreign direct investment and energy consumption in Côte d'Ivoire. Using data from the World Bank and International Country Risk Guid over the period 1984-2014 and the Dynamic Ordinary Least Squares (DOLS) and Fully Modified Ordinary Least Squares (FMOLS) methods, we account for the joint effects of institutional quality and foreign direct investment on energy consumption. The results reveal that a high level of democracy attenuates the negative effects of FDI flows on energy consumption. This result shows that improving and strengthening democratic institutions has a positive influence on energy efficiency incentive policies by changing the composition of FDI towards clean technology sectors, such as the service sector.</p> Lewis-Landry Gakpa, Hugues Kouassi Kouadio Copyright (c) 2022 International Journal of Energy Economics and Policy https://econjournals.com/index.php/ijeep/article/view/11907 Wed, 19 Jan 2022 00:00:00 +0000 Japan’s Low-growth Economy from the Viewpoint of Energy Quality https://econjournals.com/index.php/ijeep/article/view/12521 <p>To investigate the possible cause of Japan’s low-growth economy, we analyze the correlation between the quality of energy and economic production such as real GDP (Gross Domestic Product) and energy intensity over the 52-year period from 1965 to 2017. Corrections are made for the quality of energy using two approaches—a physical-based quality correction (i.e., transformity) and an economics-based quality correction. We find that energy quality affects economic production, and that real GDP correlates with quality-corrected final energy consumption. We imply that economic inactivity due to the decline in energy acquisition capacity represented by the decline in societal-scale EROI (Energy Return on Investment) may be directly linked to the low economy growth. We also find that the energy intensity decreases as the quality of energy used improves, and that regardless of quality correction, the energy intensity decreases as the electrification rate increases. Finally, we conclude that the quantity and quality of energy are closely related to the performance of the Japanese economy and point out the importance of energy quality in Japan—a country that has a low energy self-sufficiency rate in an era when the supply of energy is being depleted.</p> Yuka Nakajima, Jun Matsushima Copyright (c) 2022 International Journal of Energy Economics and Policy https://econjournals.com/index.php/ijeep/article/view/12521 Wed, 19 Jan 2022 00:00:00 +0000 Determinants of Carbon Dioxide Emissions: New Empirical Evidence from MENA Countries https://econjournals.com/index.php/ijeep/article/view/12608 <p>The paper emplyos the Pooled Mean Group (PMG) estimation to investigate empirically the relationship among carbon dioxide (CO<sub>2</sub>) emissions and potential determinants for a panel of 18 MENA countries during the period 1980-2018. The good properties in terms of consistency and efficiency of the coefficient estimates make the PMG approach very useful for examining the determinants of pollution emissions in the framework of dynamic heterogeneous panel data models over both the long- and short-run. Unlike the extant literature on MENA economies, many determinants are included in the analysis to avoid the bias problem of omitted variables. Three energy sources and two classes of sub-panels according to regional proximities and oil wealth are considered in order to provide a sensitivity check on the findings and to make the analysis more homogeneous. The results reveal long-run relationships between pollution emissions and the selected variables. All determinants are found to be statistically significant for all panels and energy sources over the short-run. However, some variables are not significant determinants over the long-run. The Environment Kuznet's Curve (EKC) hypothesis is supported only for the panel of non-oil countries, which has meaningful implications and reveals the importance of splitting the global panel in order to appropriately examine the EKC hypothesis and conduct policy debates according to the findings of each panel. The obtained results provide important policy implications.</p> Nizar Harrathi, Ahmed Almohaimeed Copyright (c) 2022 International Journal of Energy Economics and Policy https://econjournals.com/index.php/ijeep/article/view/12608 Wed, 19 Jan 2022 00:00:00 +0000 Analyzing and Forecasting Electricity Consumption in Energy-intensive Industries in Rwanda https://econjournals.com/index.php/ijeep/article/view/12526 <p>Accurate forecast in electricity consumption (EC) is of great importance for appropriate policy measures to be undertaken to avoid significant over or underproduction of electricity compared to the demand. This paper employs multiple regression (MLR) and Autoregressive Integrated Moving Average (ARIMA) for the econometric analysis. MLR has been used to investigate the impact of the potential economic factors that influence the consumption of electricity in energy-intensive industries while ARIMA is used for the electricity consumption forecasting from 2000 to 2026. ADF test has been applied to test for the unit-roots, the results show that all variables include a unit root on their levels but all series become stationary as a result of taking their first difference. Johansen technique and the Residuals based approach to testing for long-run relationships among variables has been used. The outcomes show that the variables are co-integrated. GDP per capita is statistically significant at a 1% level and EC decreases with higher GDP per capita. The results also show that EC increases with population, while Gross Capital Formation and Industry Value Added have less influence on EC. The ARIMA (1,1,1) was found to be the best model to forecast EC and the conclusion is provided.</p> Daniel Mburamatare, William K. Gboney, Jean De Dieu Hakizimana, Fidel Mutemberezi Copyright (c) 2022 International Journal of Energy Economics and Policy https://econjournals.com/index.php/ijeep/article/view/12526 Wed, 19 Jan 2022 00:00:00 +0000