The use of biomass as an energy source has advanced in recent decades, given the scientific evidence that it is a solution to the environmental problems faced globally. In this context, biofuels derived from biomass have a prominent role. Among the countries where this alternative is the most promising, Brazil stands out, just behind the USA. It is, therefore, necessary to assess whether such a replacement is economically viable. For such an assessment, the behavior of the relative price of bioethanol/gasoline is crucial. In the present work, the degree of temporal persistence of relative prices, considering the existence of shocks to which they are exposed, is evaluated, considering 15 important Brazilian capitals, via the detrended fluctuation analysis (DFA). The degree of correlation is also evaluated through the detrended cross-correlation analysis (DCCA) between fuel prices in São Paulo, the capital of the most populous state and main producer of bioethanol, with the capitals of t... [more]

The efficient and sustainable exploitation of energy resources may secure a sustainable economic growth for different regions. However, the peripheries are subject to social, economic, and political constraints, with limited power over energy management. The present work examines regional convergence in exploitation efficiency as synopsized in the GDP generated by energy and minerals in an era of the country’s efforts to shut down the lignite-run power production. With the assistance of panel unit root tests, we confirm non convergence of the variables employed, an expected result given the fact that different energy sources are being used for energy production by each different periphery, generating different economic results. In the second stage the methodology employed is a Bayesian vector auto-regressive model (BVAR) with an informative prior on the steady state. The particular methodology outperforms the conventional VAR methodology due to limited degrees of freedom. The Impulse r... [more]

Environmental control remains a salient aspect of states’ policies in the present decade. To reduce emissions, governments and central banks tend to adopt various strategies. The present research quantifies the nexus between fiscal and monetary policy, institutions’ quality, central bank characteristics, and carbon dioxide and greenhouse gas emissions. Data has been sourced from 95 countries during the period from 1998 to 2019. According to the empirical results, the main determinants of gas emissions in developing countries are economic growth, government expenses, and central bank independence, whereas, in developed countries, they are economic growth, government efficiency, and central bank transparency and independence. Economic growth is a significant deteriorating factor in the state of the environment. By contrast, institutional and bureaucratic quality, measured through government effectiveness and expansionary fiscal policies as well as central bank independence and transparen... [more]

Energy and climate policies play an increasingly important role in the world in the era of climate change and rising energy prices. More often, the importance of the development of the energy sector and climate protection is seen from the point of view of the expenditures that will need to be absorbed in the economy, with the potential for increased energy prices. However, it should be remembered that this is also related to the issue of fuel poverty and the inability to meet basic energy needs by parts of society. The aim of the paper is to assess the importance of macroeconomic policy instruments in reducing fuel poverty, using Poland as an example. It will be examined whether and how the government influenced this phenomenon (directly or indirectly), through which instruments, and which instruments (fiscal, monetary or energy-climate policy) played the most important role in shaping the scale of fuel poverty in Poland, with an emphasis on the role of monetary and fiscal policy instr... [more]

The growing share of renewable energies needs more flexible services to balance their intermittency and variance. The existing coal fired units and electrical energy storage (EES) systems may play an important role in delivering flexible services. The value of their flexibility services, along with the value of renewable energies, has to be analyzed from the perspective of the power system, in which the capacity costs and operation costs of renewable energy power units, EES systems, and thermal power generation units have to be taken into consideration. An optimal model is built to analyze the renewable energy integration and the flexibility services delivered by the EES systems and thermal power units in a power system. Taking the existing thermal power units and EES systems in North China Power Grid as an instance, the overall cost of the grid is examined for the penetration of renewable energies and flexible service provision. The results show that the growing shares of renewable en... [more]

Evaluation of driving behaviour is helpful for policy development, and for designing infrastructure and an intelligent safety system for a car. This study focused on a quantitative evaluation method of driving behaviour based on the shared-electrical car. The data were obtained from the OBD interface via CAN bus and transferred to a server by 4G network. Eleven types of NDS data were selected as the indexes for driving behaviour evaluation. Kullback−Leibler divergence was calculated to confirm the minimum data quantity and ensure the effectiveness of the analysis. The distribution of the main driving behaviour parameters was compared and the change trend of the parameters was analysed in conjunction with car speed to identify the threshold for recognition of aberrant driving behaviour. The weights of indexes were confirmed by combining the analytic hierarchy process and entropy weight method. The scoring rule was confirmed according to the distribution of the indexes. A score-based eva... [more]

Renewable energy has emerged as a key to attain higher economic growth without any detrimental impact on the environment. Therefore, the entire world is in the transition phase from non-renewables to renewables. To improve the levels of production of renewable energy, it is inevitable to discern its determinants. Hence, this study aims to probe the impact of monetary, fiscal, and trade policy uncertainty on renewable energy production in the United States. To this end, the novel smooth and sharp structural breaks unit root test is used to scrutinize the order of integration. Next, we also apply the novel augmented autoregressive distributed lag methodology for discerning cointegration. The findings note that, in the long- and short-run, monetary policy uncertainty plunges the production of renewable energy, whereas fiscal policy uncertainty upsurges it. Further, trade policy uncertainty does not affect renewable energy production. Based on these results, we propose policy suggestions t... [more]

The lower price of energy leads to higher coal consumption in China. The idea of an “environment-for-trade policy” could be used to achieve an international competitive advantage, which, in turn, has important implications. To address the issue, we develop properties to examine the link between the low price of energy and strategic environmental policy in China and investigate the choice of policy instruments in a strategic environmental policy model with vertical contracts. In addition, to contribute to the literature on strategic environmental policy, this paper also develops properties to investigate different choices of instruments for the environmental policy and includes the degree of energy marketization for the wholesale price in the study. To do so, we assume that the wholesale price of the polluting input increases with the market price. By using this assumption, this paper analyzes the effects of two instruments of the environmental policy on social welfare and concludes tha... [more]

Shifting from heating using fossil fuel combustion to electrified heating, dominated by heat pumps, is central to many countries’ decarbonisation strategy. The consequent increase in electricity demand, combined with that from electric vehicles, and the shift from non-renewable to renewable generation requires increased demand flexibility to support system operation. Demand side response through interrupting heating during peak demands has been widely proposed and simulation modelling has been used to determine the technical potential. This paper proposes an empirical approach to quantifying a building’s potential to operate flexibly, presenting a metric based on measured temperature drop in a dwelling under standard conditions after heating is switched off, using smart meter and internal temperature data. A result was derived for 96% of 193 homes within a test dataset, mean temperature drop of 1.5 °C in 3 h at 15 °C inside-outside temperature differential. An empirical flexibility met... [more]

The European transition to green economy is based on long-term strategies. The Europe 2020 Strategy was launched in 2010 in order to promote smart, sustainable, and inclusive growth in the region. Later, the ambitions regarding this strategy were followed by the Green Deal and Sustainable Development Goals. Now, the effort of countries towards the green economy is even more relevant than ever because of the context of today’s global energy crisis and economic uncertainty due to many challenges such as the COVID-19 pandemic or Russia invasion of Ukraine. This paper seeks to assess the countries’ achievements in seeking climate change and energy targets of the Europe 2020 Strategy by applying the innovative multi-criteria decision-making (MCDM) technique. The kernel-based comprehensive assessment (KerCA) method was applied for the calculations of the progress achieved and countries’ rankings. It allows to evaluate countries’ achievements and compare them using the mathematical models. Th... [more]

Carbon emissions trading (CET) is now one of China’s key policy tools for achieving the goals of carbon peak and carbon neutrality. To comprehensively explore the consequences of China’s CET policy, the study first evaluated the content validity of CET policies across China’s 31 provinces, autonomous regions, and municipalities falling directly under the central government using policy strengths, tools, and measures from 2011 to 2020. The spatiotemporal drivers of regional carbon efficiency improvements from aspects of actual policy effect, average policy content validity effect, and policy quantity effect were also evaluated via the logarithmic mean Divisia index. This analysis revealed that the policy content validity was increasing in general and was higher in pilot regions. On average, the policy quantity effect was the primary driver of carbon efficiency improvements in both pilot and non-pilot regions, but the actual policy effect failed to promote carbon efficiency in both regio... [more]

A concern for ensuring energy security is particularly important in the 2020s, a decade significantly marked by economic and political uncertainty: the coronavirus pandemic, the Russian-Ukrainian war, and inflation turning into stagflation in many markets. Additionally, the national and international climate policy promoting the acquisition of energy from non-renewable sources is only a part of the problem that forces a revision of the direction and degree of diversification of energy sources. States, bearing in mind the inevitability of change, in order to maintain energy security, should not only accurately read these phenomena but also effectively prevent them. One of the available solutions is to build a multi-energy concern to ensure energy independence through diversified production and distribution of electricity and non-renewable fuels. To this end, a large international entity centred around the PKN Orlen group has existed in Poland for several years. The construction of this... [more]

One of the important goals of the EU is to ensure a secure, sustainable, and competitive energy system that is less dependent on external energy supply. Greater independence is planned to be achieved by diversifying energy sources, as well as investing in renewables and energy efficiency. One of the mechanisms is the demand response (DR) that provides a high level of energy independence for the consumer. In this paper, we explore perspectives of the development of DR with a mediating effect of the independent aggregators from an EU member state standpoint. We use a hybrid research methodology that combines instruments of strategic analysis, i.e., PESTLE framework and SWOT analysis, along with the integrated risk management framework in order to identify, evaluate and rank prominent risks to which this initiative is exposed. Interdependencies between the identified risk factors are also included and efficient mitigation measures are proposed. The findings of this exploratory research ar... [more]

Renewable energy consumption is the call by United Nation Sustainable Development Goals, and sustainable consumption is the only solution for the future. This study found that the solution to the framed problem has a requirement to categorize the green consumer value parameters in hierarchy of importance for five specific RESs and their alignment with environment policy based on a comparison of Poland and India. The study revealed the importance of each criterion for renewable energy sources providing, a comparative table of Poland and India. The methodological approach used secondary data for selecting countries, and primary data are used for statistical analysis of Automatic Linear Modelling. The research concludes that the CRITERIA4 is one of the most important that emerged with all five RESs for Poland and three RESs for India. Both countries are aligned with the UN sustainable development goals and are switching over to all means of sustainability. Poland scores a higher value of... [more]

Achieving the ambitious climate targets required to limit global warming to 1.5 °C requires a deep transformation of the supply-and-demand side of energy−environmental−economic systems. Recent articles have shown that environmentally sustainable consumer behaviors driven by lifestyle changes can significantly contribute to climate-change mitigation and sustainable development goals. However, lifestyle changes are not adequately captured by scenarios developed with integrated assessment and energy-system models (IAMs/ESMs), which provide limited policy insights. This article conducts a systematic review of the IAM and ESM literature to identify the most important lifestyle changes in current mitigation pathways for the residential and transport sectors, review the employed state-of-the-art modeling approaches and scenario assumptions, and propose improvements to existing methodological frameworks. The review finds that mode shifts towards public transport and active transport modes, sha... [more]

The war in Ukraine has sensitized German policy makers towards the negative economic impact of a curtailment of natural gas flows from Russia. Given its large import dependency, Germany has implemented regulatory measures for mitigating a possible gas shortage and is seeking to diversify from pipeline imports of liquefied natural gas (LNG). In this context, we provide a comprehensive review of the natural gas crisis in Europe and place it in the context of the peculiar role of natural gas in Germany. We critically discuss the economic impact of an embargo, and assess demand and supply factors capable of mitigating a supply shortage. We derive a short-term import substitution potential of 13 bcm, assuming timely installation of Floating Storage and Regasification Units (FSRUs). We discuss the potential for demand reductions in the power sector, in industry consumption, and in households, and estimate a combined maximum of 24.1 bcm. Under decreased industrial demand, the most optimistic... [more]

Information and communication technology (ICT) companies strive for ceaseless innovation to remain competitive while facing the challenge of maximizing firm value (FV) with limited resources, and increasing the interests of shareholders. However, capital structures have a considerable effect on FV, and the literature still disagrees with the optimum structure in specific industries and countries. Therefore, this study evaluates the FV of ICT companies in terms of profitability efficiency using data envelopment analysis. In addition, this study applies a Tobit regression and Kruskal-Wallis one-way ANOVA to identify the impact of leverage, liquidity, and firm size, which are major capital structure factors influencing FV. The analysis yields three main results. First, in the ICT industry, small and medium companies tend to have better profitability efficiency than companies of other sizes. Second, only small and medium ICT manufacturing companies’ profitability efficiency is positively i... [more]

The business model is understood as a way of generating revenue and creating value. This article aimed to define the framework and detailed characteristics of the business model in corporate reporting in the energy sector. The study also addressed the issue of value creation and examined the correlation between reporting information about the business model and the value of the enterprise, calculated using selected accounting measures. The research was conducted in 2021 on all listed companies in the energy sector included in the WIG20 index in 2019−2020. The research methodologies included critical analysis of the literature, analysis of the content of corporate publications, comparative analysis, analysis of phenomena and synthesis of results, Spearman’s rank correlations, and graphical data presentation. The originality of our research concerns directing attention to the disclosure and reporting of information about the business model in corporate reports in the energy sector in Pol... [more]

The estimation of the price change effects caused by the impact of external shocks on the national economy is extremely important. The aim of this paper is to estimate the effect of the increasing global energy prices on the stability of the Croatian economy. The effects of the increase in energy prices are compared with other exogenous shocks, i.e., with the effects of the increasing gross wages and salaries and the increasing prices of imported goods and services. The impact of the changes in the prices of primary inputs on the trends in the economic sector prices was quantified using the input−output price model. The intensity of the transmission of the change in price of a primary input to other sectors through intersectoral dependence was analyzed. The results of the analysis indicate that the Croatian economy is extremely sensitive to energy price shocks. The estimated effects of increases in the prices of certain primary inputs, especially energy, on various economic sectors and... [more]

Climate change is taking place on a global scale and it is substantially affected by human activity, including increasing greenhouse gas emissions. One of the thematic objectives of EU’s new financial objective is a more environmentally friendly low-emission Europe that promotes clean and fair energy transformation, green investments, and a circular economy, among others. The Polish economy is mainly based on energy production from conventional sources (fossil fuels). Considering that the demand for electricity in Poland is predicted to increase by as much as 50% until 2040, it is necessary to take action aimed at increasing the share of renewable energy sources. The subject of analysis is the Opolskie Voivodeship (a NUTS 2 type region), the capital of which features the biggest Polish coal power plant. In 2014−2019, it was expanded by two units with 1800 MW in total capacity, thereby indicating that investments in energy obtained from conventional sources are still implemented and to... [more]

This work aims to characterize how home energy upgrade projects and programs in the US have evolved over the past decade. It also identifies what changes are needed to drive expansion of the US energy retrofit market in such a way that addresses carbon emissions from buildings, improves resilience and upgrades the housing stock. This review focuses on whole-home energy upgrades, targeting deep energy retrofit savings of >30%. The topics we cover include trends in home electrification, US and European home energy upgrade programs, energy upgrade measure costs, business economics, and health effects. Key changes in project design noted in this review include: (1) the electrification of dwellings with rapidly improving heat pump systems and low-cost solar photovoltaic technology; and (2) a shift away from high-cost building envelope strategies and towards more traditional home performance/weatherization envelope upgrades. Promising program design strategies covered include: (1) end-use el... [more]

Climate and energy policies are the key areas of the European Union’s development aspirations in the international arena. The European Green Deal sets ambitious new goals in this respect, emphasizing clean energy. The development of the energy sector, relying chiefly on renewable sources, is one of the conditions for the EU to transition to energies that do not produce waste that pollutes or is otherwise harmful to the Earth and human health. This paper assesses the development of renewable sources of energy in the EU and identifies challenges to the realization of the EU’s energy priorities. An analysis of renewable sources of energy in the EU in 2012 and 2020 is the prime method. The generation of primary energy from renewable sources, the share of energy from renewable sources in the final energy consumption, the structure of energy generation from renewable sources, and the share of energy from renewable sources in the energy used by the transport sector are discussed. Secondary da... [more]

The concept of “smart cities” plays a positive role in the overall green and sustainable development of a nation. However, it is still debated whether smart cities can restrain the carbon emission intensity at the micro-level and promote the green transformation of enterprises. To this end, based on China’s smart city policy (SCP) and regional enterprise data from 2008 to 2015, we study the impact of SCP on the carbon emission intensity of local enterprises, using the difference-in-differences method. The results show that SCP significantly reduces the carbon emission intensity of enterprises, and the estimated results remain significant after the propensity score matching. The mechanism analysis finds that digital transformation, innovation by enterprises, and urban green innovation all strengthen the impact of SCP on the carbon emission intensity of enterprises. The conclusions extend the scope of the existing research and provide suggestions for micro-enterprises to take advantage o... [more]

This paper develops a capped barrier option model to examine how a cap-and-trade mechanism affects an insurer’s guaranteed rate-setting behavior and policyholder protection in a financial gray rhino environment. Toward sustainability, the insurer explicitly captures the credit risk from the borrowing firms, participating in the cap-and-trade scheme to reduce carbon emissions, an essential issue of carbon emission and environmental protection when facing gray rhino threats. In addition, the energy economics and policy analysis are from the fund-providing insurer’s perspective. Green lending policies and life insurance policy loans (i.e., disintermediation related to insurance stability) are crucial to managers and regulators, particularly bridging the borrowing-firm carbon transactions for carbon emission reductions toward sustainability. We show that the shrinking regulatory cap of the cap-and-trade scheme harms policyholder protection, adversely affecting insurance stability. The harm... [more]

One of the strategic goals of developed countries is to significantly increase the share of renewable energy sources in electricity generation. However, the process may be hindered by, e.g., the storage and transport of energy from renewable sources. The European Union countries see the development of the hydrogen economy as an opportunity to overcome this barrier. Therefore, since 2020, the European Union has been implementing a hydrogen strategy that will increase the share of hydrogen in the European energy mix from the current 2 percent to up to 13−14 percent by 2050. In 2021, following the example of other European countries, the Polish government adopted the Polish Hydrogen Strategy until 2030 with an outlook until 2040 (PHS). However, the implementation of the strategy requires significant capital expenditure and infrastructure modernisation, which gives rise to question as to whether Poland is likely to achieve the goals set out in the Polish Hydrogen Strategy and European Gree... [more]