ALBERT

Description: Uncertainty whatsoever has undoubtedly been deemed to be malevolent to the interests of investors. Theories of partial irreversibility of investment argue that uncertainty at the micro level negatively impacts the firm’s investment and thereby, at least, slow the process of capital accumulation. Therefore, the present study, empirically analyzes how energy price uncertainty affects investment decisions of manufacturing firms in India.  A variety of panel data models are estimated using Generalized Method of Moments (GMM) with data pertaining to  Indian manufacturing firms over the period 1992- 93 to 2013- 14. Results are consistent with irreversible investment literature on the supply side of production, which shows that energy uncertainty has a negative effect on the capital accumulation in the manufacturing sector and this effect transpires in the form of firm's inability to adjust its actual capital stock to match up to its potential desired capital stock as proposed by the investment theories. Keywords : Energy Price Uncertainty, Irreversible Investment, Energy Intensity JEL Classifications : C23, D80, E20, Q41.

Description: This paper aims to examine the effects of electric consumption on three sectors, namely, manufacturing, agriculture and services. The Johansen co-integration model is applied. The results indicate a long-run relationship between electric consumption and three sectors in Malaysia. VECM shows that it is confirmed that the long run relationship among electric consumption, agriculture and manufacturing in Malaysia. The Granger causality is used, and the results show that electric consumption does not Granger cause manufacturing and services sectors. However electricity consumption does Granger cause agriculture sector. Keywords: Electricity consumption, Agriculture, Service, Manufacturing JEL Classifications: Q11, Q43

Description: This study probes the short and long run relationship between economic growth, electricity supply, trade openness, electricity prices, employment and capital in South Africa within a multivariate framework. The autoregressive distributed lag bound testing was employed to establish the long run relationship between these variables using data for the period between 1985 and 2014. Major findings of the study include that economic growth, electricity supply, trade openness, electricity prices, employment and capital are co-integrated. Overall, the paper suggests that efficient planning and increased investments in electricity supply industry infrastructure is of essence to solve the problem of electricity supply as this would force the sustainable economic growth in South Africa. Keywords: Electricity Supply, Economic Growth, South Africa JEL Classifications: O13, Q43

Description: Recent environmental concerns and policies have reformulated the traditional economic dispatch problem by including the emission impacts in the mathematical model.  The combined economic and emission dispatch problem is a multi-objective non-linear optimization problem. This paper presents a method to consider the fuel costs and environmental emissions simultaneously. The -constraint method for bi-objective optimization has been used to generate Pareto front. Furthermore, trade-off curves have been developed for different types of emission. The elasticity of cost with respect to the emission (say, emission elasticity) has been estimated for all Pareto optimal points and different types of emissions that provides invaluable information for the system operator to run the system with sufficient flexibility subject to technical constraints while the operator has multi fuel options. Moreover, the emission elasticity is effective tool for competition in the electricity market. The Iranian Electricity Market is considered as empirical evidence. Keywords: Combined economic-emission dispatch, Emission elasticity, Iranian electricity market, Multi objective optimization model, ε-Constraint. JEL Classifications:   C6, F64, P48, Q

Description: In this study, the impact of information communication technologies (ICT) on electricity consumption in the Next 11 (N-11) emerging economies over the period 1990-2014 is examined. This period coincides with high economic growth rates in those countries and associated rapidly increasing electricity consumption as well as the ICT revolution that saw the rapid uptake of new ICT by its peoples. Little has been published on the relationship between ICT and electricity consumption in the N-11 emerging economies. This paper examines the hypothesis that increased use of ICT increases electricity consumption. Secondly, how different measures of ICT affect electricity consumption and finally, what are the short-run and long run elasticities of electricity demand with respect to ICT in N-11 countries? The methods used included dynamic panel data models (MG, PMG, system GMM) and show a positive and statistically significant relationship between ICT and electricity consumption where ICT is measured using internet connections, mobile phones or the import percentage of ICT goods of total imports. Long run ICT elasticities are smaller than income elasticities but because ICT growth rates are so much higher than economic growth rates, the impact of ICT on electricity consumption is greater than the impact of income on electricity consumption. Electricity demand projections in emerging economies, which do not include ICT as an explanatory variable, may underestimate actual electricity demand. This can lead to unplanned electricity shortages if actual electricity demand exceeds planned electricity demand. Thus, the paper gives policy recommendations based on the empirical results for the N-11 countries to address this problem. Keywords: N-11 countries, ICT, Electricity Consumption, Panel data, MGE, PMGE, system GMM JEL Classifications:  L94, O1, N17, O10, Q43, J21

Description: The relationship between the oil and the level of economic activity is a fundamental empirical issue in macroeconomics. Also, a part of major debates between the pessimists and the optimists approaches about economic growth is how uncertainty of proved reserves of non- renewable energy resources as a one of main inputs, effects on the economic growth; in other words, on the base of some optimistic new economic growth models, the uncertainty through positive shocks positively effects on the economic growth. So, to find some evidences about it, in this research we try to find experimentally direct effects of uncertainty of oil proved reserves on macroeconomics of Iran by using annually data from 1980 to 2013 by using Multivariate GARCH-in-mean VAR model. We find that uncertainty in oil proved reserves has not had statistically significant effect on aggregate output and the responses to positive and negative shocks are symmetric. Keywords: Uncertainty, Oil proved reserves, Time allocation of resources, Vector autoregression multivariate GARCH-in-mean VAR. JEL Classification: C32; E10; Q32.

Description: Nigeria is Sub-Saharan Africa’s largest oil producer and also possesses huge unrealized gas deposits. The oil and gas industry is considered as the lifeblood of Nigeria’s socio-economic development, bearing in mind the well-established historical antecedents and the unfolding happenings. However, inspite of the strategic role of this industry to national wellbeing, it is a signpost for; corruption, infrastructure deficit, oil smuggling, vandalism and diverse security challenges. It is noteworthy, that accurate revenues attributable to the industry are not consistently published. Royalties paid to the Federal Government remain undisclosed for unjustifiable reasons. Also, specifics of transactions are disguised, thereby making it practically impossible for an interested stakeholder to monitor the level of; royalties, taxes, fees and charges paid to the Federal Government. Hence, the paper critically assessed selected laws, code, practices and the essence of policy re-engineering to Nigeria’s oil and gas industry. Conclusions and contextual recommendations were also proffered.  Keywords: transparency, oil & gas, law, policy, re-engineering, Nigeria JEL Classifications: O13, Q48

Description: This paper studies the relationship between oil price and the exchange rates of OPEC members from February 1999 to March 2016. The wavelet method is applied to combine information from both time and frequency domains, which does not require stationary and decomposition of original time series data. The study found that the strength of the relationship between oil price and exchange rate divides into three main categories, namely oil price leads exchange rate, exchange rate leads oil prices, and the relationship keeps changing. Countries which currencies pegged to USD are lagging against oil price changes, countries with floating exchange rates and countries with an undisclosed weighted basket of international currencies leads the changes in oil price, and countries which their currencies pegged to Special Drawing Right (SDR) experience changing relationships. This finding suggests that the central banks of OPEC member countries should give importance to shocks on oil prices, while formulating their own exchange rate policy. Keywords: Wavelet coherence, oil price, exchange rate, OPEC JEL Classifications: C58, F31, Q02

Description: Environmental degradation and climate change are the main challenges encountered to achieve the predominant objective of sustainable development. There has been voluminous work done in this area, but the policies adopted and the empirical relationship between the determinants of CO 2 emissions are not clear to handle the problem.  There exists a theoretical and empirical contradiction in the literature on the relationship between the variables under the study. Thus, the current study investigates the relationship between carbon dioxide (CO 2 ) emissions and its determinants namely economic growth, energy consumption, financial development, and technological innovations for Malaysia between 1985 and 2012. To achieve the objective of long-run relationship the autoregressive distributed lagged (ARDL) model is used for parameter estimation. The empirical results reveal that technological innovation is having a negative but insignificant relationship with environmental pollution in Malaysia during the period under study. The study also indicates that higher economic growth improves the environmental quality in the long-run and is in line with the Environmental Kuznets Curve (EKC) hypothesis. In a similar vein, the results indicate that financial sector development will lessen the CO 2 emissions, thus, improving the quality of the environment in Malaysia. The short-run results reveal no evidence of the validation EKC hypothesis. Furthermore, the study applied Granger causality approach for causal relationship and found bidirectional causality running between economic growth and CO 2 emissions and between technological innovation and CO 2 emissions in the long-run. The study also found that the impact of energy consumption in the short-run is environmentally friendly. Moreover, the results indicate a short-run bidirectional causality running between energy consumption and economic growth and also between economic growth and technological innovation. Keywords: CO 2 emissions, EKC, technological innovation, ARDL, Malaysia JEL Classifications: C32, O52, Q43, Q50

Description: Today conflicts between large organizations that promote hydroelectric megaprojects (Sovacool, et al, 2015) and local communities are predictable (Ansar, et al., 2014). In literature, the causes of these levels of conflict are explored from the point of view of power relationship (Goodwin & Jasper, 1999) and stakeholder framework theory (Rosso, et al., 2014). This paper presents an original way to address this research field through an endogenous view (Mieg H. A., 2014) of the organizations focused on decision making process based on expert judgment. The study scopes are environmental decisions under uncertainty that are carried out to develop environmental impact assessment. All organizations that are developing large hydroelectric projects in Colombia during period 2010-2020 were examined. The results indicate the difficulty of organizations (Moritz & Gieri, 2015) to adequately respond to external requests associated with environmental and technological dimensions. Cumulative prospect theory and heuristic and biases framework (Brighton & Gigerenzer, 2015) are the theoretical background. Energy policy recommendations are generated based on adjustment type "external view" that comes from behavioral organizational framework (DellaVigna, 2009). This study identifies a novel approach to design lesser levels of conflict through creating better organizational decision making processes. Keywords: Decision making theory, large organizations, cumulative prospect theory, megaproject JEL Classifications : D22, Q51, L90 

Description: This paper is an attempt to analyze changing energy intensities in the Indian economy. The hybrid I-O model at constant prices has been used to address the problem of homogenous pricing of energy inputs across sectors of the economy. Results reveal that the indirect rather than direct energy use is an important source of energy consumption. In such scenario, conservation measures should be pegged in upstream suppliers through technological improvements, fuel substitution or input replacements. Finally, the paper argues that improvements in energy efficiency in the production chains are likely to be more effective than changes within the production process. Keywords: Hybrid Input-Output; Energy intensity; Constant prices JEL Classifications: C67, D57, Q40

Description: Natural gas distribution infrastructure is critical to socioeconomic development and environmental sustainability in Nigeria. Environmental degradation has benefited largely from inadequate natural gas utilisation and infrastructural development in the domestic and regional networks to gather, transmit and distribute the associated gas produced. Thus, this paper explores the concept of gas development to promote sustainable development and to tackle the problem of environmental degradation in Nigeria. It identified the various natural gas utilisation projects in the domestic, regional and international networks to stimulate economic growth as well as the quest for environmental sustainability across the gamut of Nigeria. These projects enable captured gas to be harnessed for socioeconomic and environmental benefit, eliminate routine gas flaring and create the much needed gas infrastructure for development. Quite remarkably, natural gas distribution infrastructure creates undisputed domestic and regional hub gas based opportunities for industries in the domestic network. It also acts as industrial feedstock to consolidate the market share in high value export market through the liquefied natural gas (LNG), Escravos Gas Project and the West Africa Gas Pipeline (WAGP) in the West African sub region. Keywords:   Natural gas utilisation; environmental sustainability; environmental preservation; JEL Classifications: O13, Q55

Description: In Indonesia, the use of LPG in vehicles has been promoted through government policy since 1988. However, the progress has not significantly run. Therefore, this paper presents the techno-economic analysis of LPG as road vehicles fuel alternative in comparison with gasoline RON 88 and RON 92 for public transportation in Indonesia. The techno-economic analysis is considered running cost, break-even point (BEP) distance, net present value (NPV), internal rate of return (IRR), payback period, and sensitivity analysis. This analysis indicates that the BEP distance of public transportation vehicles are approximating at 55,351 km compared to gasoline RON 92 and 93,168 km compared to gasoline RON 88. Meanwhile, the result of the investment analysis shows that the investment feasibility indicators which include NPV, IRR, and payback period show the investment was feasible but the investment is sensitive to fuel cost ratio between LPG and gasoline. Keywords: LPG vehicles, running costs, investment feasibility JEL Classifications : M21, O31, Q43

Description: The Government sector is one of the main energy consuming sectors in Thailand which consumed 2,064 GWh of total consumption in 2012. Due to Thailand need to import energy, so Government of Thailand announced to all government agencies to reduce energy consumption by 10%. Public school is one of government agencies, not only to reduce their consumption but also have responsibility to transfer knowledge and create the behavior of energy saving for students. However, it is not simple to fulfill this task due to many obstacles, called “Barriers”. The purpose of this paper is to identified the barriers which prevented public schools from energy saving and how to overcome those barriers, by interviewing with school managements as research method. The results highlight the government policies and values are the main barriers of energy saving in schools and also suggested various ideas of how to overcome those barriers in each level. Keywords:  Energy saving, Barriers, public school JEL Classificationss : Q4, P28

Description: This study aims to estimate and analyze the income elasticities of Brazil’s energy matrix, represented by the supply and consumption of energy. We sought to compare the income elasticities of both energy products and consumption through secondary sources and consumer sectors. This is an explanatory or relational research of an ex-post-facto nature, analyzing the period from 1970 to 2011, using the ANCOVA-EC estimation method. The results obtained from the estimates show that both for energy products, as in relation to industrial sectors, the elasticities are statistically different. The naphta, natural gas and ethyl alcohol had the highest elasticities in the energy matrix, and the industries ferro-alloy, non-ferrous metals and non-energy are the most sensitive to income growth. When elasticities are compared with the sectoral energy intensity index, there is evidence that less efficient sectors have higher income elasticities. In summary the results show that there is sectors or products that are more sensitive to economic growth where the energy-intensive and demand presented as the main factors to explain the sensitivity, there is also evidence to demonstrate that the level of efficiency is different compared the different sectors. Keywords: Income Elasticity, Price Elasticity, Energy Matrix, Sector Demand for Energy JEL Classifications: E3, G38, K23, M48, Q4

Description: This paper examines the causal relationships between energy consumption, income and energy prices for the African countries using Johansen's maximum-likelihood test of cointegration and Error-Correction Model (ECM). To have a reliable estimate, only countries having data availability for a minimum period of 25 years were considered. This requirement reduces the sample size to 26 countries only. Out of these, a long run cointegrating relationship was found for a total of six countries, which was then subsequently analyzed to confer on the direction of causality. Out of the reported five countries, we found the existence of bidirectional Granger causality for Ethiopia, Morocco and Mozambique. The result for Angola suggests unidirectional Granger causality running from income to energy consumption while no Granger causality for the case of Tanzania. Findings suggest that countries regardless of their level of income and development should direct their energy conservation policies on the basis of the energy-output causality relation. Keywords: energy; Johansen's maximum likelihood test of cointegration; Error Correction Model. JEL Classifications: C22; Q43; Q48

Description: The present study aims to reinvestigate the relationship between electricity consumption and economic growth in Angola by introducing exports, imports and urbanization in the production function. We utilize the combined cointegration method to test the long-run relationship for the period of 1971-2012. Whilst accommodating structural breaks, the ARDL bounds test approach is applied to examine the robustness of the long-run relationship in the variables. The results reveal that electricity consumption boosts economic growth but urbanization impairs it. The VECM causality results unveil the feedback relationship of electricity consumption with economic growth, exports and imports. It is, therefore, suggested that the policy makers should formulate the policies to improve the electricity supply that in turn will enhance the economic growth. Keywords: Electricity consumption, economic growth, combined cointegration test, Granger causality test JEL Classifications : C32; O55, Q43

Description: The purpose of this article is to study the specifics of renewable energy development in China, including solar, as well as to identify the main factors limiting the ubiquity of solar energy in the country. Among the main objectives of the article, it makes sense to highlight the following: a study of historical preconditions for the formation of the renewable energy segment in the national energy sectors; an analysis of the main trends in socio-economic and energy development in China; an evaluation of China's activity in the exploitation of renewable energy sources; consideration of the most important prospects and limitations in the use of solar energy. Keywords: Renewable Energy; Solar Energy; China; Conventional Energy Production; Photovoltaic Cells; Electric Power JEL Classifications: Q42, Q48, O31

Description: This article tries to explore the long-run nexus between oil consumption, GDP and carbon dioxide (CO2) emissions in the Next eleven (N-11) countries over the period 1980-2013, by using the panel c-ointegration, the panel Dynamic OLS and the panel Fully modified OLS approaches.The empirical findings indicate that there is a bidirectional long-run linkage between oil consumption – GDP per capita and oil consumption- CO2 emissions. Moreover the inverted U-shaped linkage between the square of GDP per capita and CO2 emissions, supports the existence of Environmental Kuznets Curve (EKC) hypothesis. With estimations through the panel DOLS and FMOLS, the long-run elasticity of oil consumption per capita to CO2 emissions per capita is calculated about 0.96% and positive which is in contrast to the coefficient sign of its elasticity to GDP per capita (-0.48%). Moreover, the elasticity of GDP per capita and CO2 emissions per capita to oil consumption per capita are -0.32% and 0.94%, respectively. These findings prove the negative contribution of non-renewable energy (oil) consumption per capita to GDP per capita in the N-11 group. Furthermore, due to the bidirectional long-run relationships between oil consumption and CO2 emissions, these 11 countries should find the efficient energy policies which are in line with CO2 mitigation and reaching a higher GDP per capita growth. Keywords: Oil consumption per capita, GDP per capita, CO2 emissions per capita. JEL classifications : E21, Q54, Q56

Description: The goal of the article is to analyze the present state and perspectives of exploring gas and oil resources of the Russian North in the context of economic interests of a number of foreign countries, to reveal both common things in interests of the both parties, and inconsistencies that must be aligned. The methodology of the research is based on the system approach to estimating the state of gas and oil resources of the Russian North and comprehensive analysis of aligning economic interests of Russia and a number of foreign countries. A complex of general scientific and special methods of research was used, including abstract-logical, balance, statistical analysis and others. The article shows that the Russian North is extremely rich in gas and oil resources that are both currently exploited and promising for reclaiming especially on the shelf of Arctic seas. It analyzes reasons of the decrease in the gas and oil production in the country that has occurred over recent years. It is caused by the fall of the demand for hydrocarbons in the world, sectoral sanctions, and the decrease in the production of the mineral resources base. Gas and oil resources of Russia fall within the interests of a number of foreign countries, mainly West European countries for which stable provision of the economy with raw hydrocarbons becomes one of the most important strategic tasks. Long-term economic interests of Russia coincide with the interests of the European Union, however, not fully. The authors come to the conclusion that in case of supplying hydrocarbons economic interests of Russia and European Union countries must be aligned not only in terms of searching for mutually profitable forms of cooperation but also solving basic inconsistencies that lie in the basis of opinions discrepancies. Keywords: gas and oil resources, the Russian North, Arctic shelf, Western European countries, Asia-Pacific countries, alignment of interests. JEL Classifications: , D74, F00, L71, Q32, Q34

Description: This paper analyses the joint effects of oil price volatility and environmental risks on non-performing loans. Using panel data of 12 Organisation of the Petroleum Exporting Countries for 2000-2014, we test hypotheses of joint effects of oil price changes and environmental risks on non-performing loans. Estimates from static panel model highlights the explanatory power of systemic risks theory in linking the effects of oil price volatility and environmental risks on NPLs and underpins their importance for policy implication purposes in OPEC member states. This calls for concerted policy and management response for assessing oil price sensitive and disaster riskiness of borrowing entities. This paper is of particular value to oil dependent countries such as OPEC member states that are net oil exporting countries. From the policy perspectives, there is need for banking regulators to consistently ensure the conduct of both micro-stress and macro-stress tests of loans against the systemic risks of oil price volatility. In addition, policymakers in the banking system should redesign their prudential guidelines to take care of the credit risks vulnerabilities associated with environmental risks and spread their risks across industries and geographical areas that are less prone to disasters. Keywords: Oil Price Volatility, Environmental Risks, Non-Performing Loans, OPEC JEL Classifications: G32, Q43, Q54

Description: This paper examines the impacts of oil price shocks on macroeconomic aggregates of Turkey. We find evidence suggesting the influential role of oil price shocks on macroeconomic aggregates. In other words, we find that oil price shocks affect output growth negatively with a delay. However, higher oil prices are associated with higher inflation, and depreciating exchange rate. We also explore the role of asymmetric oil shocks on macroeconomic aggregates and find that both oil price increases and decreases are associated with a delayed lower output growth rate. Furthermore, we find oil price increases affect inflation positively a delay. The appreciation of exchange rate appears with a delay due to oil price decreases. Keywords : Oil Price Shocks, Economic Activity, Turkey JEL Classification : C22, C32, Q43

Description: The aim of this paper is to examine the convergence behavior of carbon dioxide emissions per capita (co) in seven regions for 1960-2011 period by using recently developed the second generation panel data methods. Empirical results are as follows: i) there exists cross-sectional dependency for co variable ii) the CADF unit root test without structural breaks shows that the co variable is stationary at its first differences, iii) but the PANKPSS unit root test with structural breaks the co variable is stationary at its level. The overall results indicate that the regional stochastic convergence of carbon emission per capita is valid for the seven regions under structural breaks and any environmental shock has temporary effect. Keywords: Carbon Emissions, Stochastic Convergence, Panel Data. JEL Classifications : C33, Q53, Q56

Description: In this paper, we investigate long and short-term direct and indirect impact of changes in oil prices (including shocks to exchange rate) and bank lending policy (interest rate channel) on prices of six groups of agricultural products in Russia (buckwheat, potatoes, oat, wheat, rye, barley). In this paper, Granger causality approach is applied to test long-run interlinkages with monthly data from January 1999 to October 2015. For testing the response of agricultural prices to sudden shocks in oil prices, exchange rate and interest rates for agricultural loans in the short run, we use impulse-response techniques. The results of impulse response analysis show that agricultural prices are not particularly sensitive to changes in oil prices, exchange rate of Russian ruble and banks’ interest rates in short run, except for imported and not subsidized commodities. In the long run, Granger causal relationship test shows same results. Keywords : agricultural commodity, world oil prices, exchange rate, interest rate, Granger causality test, impulse response analysis. JEL Classifications: F31, Q1

Description: The importance of international cooperation in reducing the Green House Gas (GHG) has been widely recognized. The primary tool for involving developing countries in carbon reduction without hindering their development is the clean development mechanism. In order to simulate numerically the impact of the Iran clean energy development of the industrial sector under the CDM, a computable general equilibrium (CGE) model is used. The numerical simulations reveal the growth potential and sustainable development benefits that represent the CDM for Iran, though the environmental impact in terms of carbon emission of sectors appears broadly mixed. Based on results some sectors benefit from these clean investment flows -including industry- other sectors show carbon emission increases, but the overall emission of the economy decrease and results in lower environmental costs in green GDP. Keywords: Clean Development Mechanism, Computable General Equilibrium, Industry Sector, Iran. JEL Classifications: D58, O13, Q56.

Description: The Energy Efficiency Directive 2012/27/EU (EED) requires that final users in multi-apartment buildings supplied by common central heating source should be provided by 31 December 2016 with accounting systems, as long as technical feasibility and reasonable costs in relation to the potential energy savings can be demonstrated. Such systems would reflect users actual thermal energy consumption. The typical configuration of Italian multi-apartment buildings implies quite expensive installation costs and sometimes even prevents the installation for technical reasons. Coherently with EED, in such cases alternative cost-efficient methods for heat accounting should be adopted, such as indirect methods. This study assesses the economic and technical feasibility of the most common heat accounting systems. In this paper, after a brief analysis of the different approaches adopted in EU member states, the authors present a cost/benefit analysis that considers the main capital and running costs of individual heat accounting systems with respect to the potential energy savings achievable. Keywords: energy efficiency, heat accounting, cost efficiency. JEL Classifications: O31, O33

Description: Food and beverage industries play crucial roles in satisfying food requirements. They rely on various kinds of energy to prepare and process foodstuff. The relative prices, technology level, sector growth and machinery status determine use of energy carriers in these enterprises. This paper examines the relationships among natural gas use, value-added and energy prices in food and beverage industries of Iran during 1978-2014. The decision unit is food manufacturing workplace. By considering microeconomic basics and applying co-integration approach, demand for natural gas is estimated. Due to the long-run nature of co-integrating relationships, the long-run own- and cross- price elasticities and income elasticity are estimated. Our findings show that natural gas is a luxury input in food industry, it is highly elastic to its price; and electricity and oil products are substitutes for natural gas. In a growing food sector, we would expect natural gas use to increase more rapidly. Keywords : Natural Gas, Food industry, Price elasticity JEL Classifications : D21, Q13, Q41 

Description: One of the main tasks of the state when achieving the stable economy growth is to stimulate a growth of the energy efficiency in energy intensive sectors of economy and to form the efficient regulatory basis to decrease the energy ratio. Therefore, the main task of the state power is to provide efficient, reliable, and ecologically responsible supply of energy resources. Thus, in 2013 the Government of the Republicof Kazakhstandeveloped and adopted the Concept on Transferring to “Green Economy”. Its basic goal is to provide reliable, adequate and accessible energy resources for substantial social, economic, and ecologically stable growth of the country. The research conducted within this article allows to make the conclusion that at the present time the Republic of Kazakhstan has a very low level of energy efficiency. In spite of considerable positive changes in the development of innovations, in accordance with the classification of the 2015 Global Innovation Index, Kazakhstanis ranged as an inefficient innovator with a low level of investments in research and development works and low demand for eco-innovations. Keywords: eco-innovations, green technologies, green power industry, national innovational strategy, energy efficiency, energy ratio, resources of renewable energy sector (RRES). JEL Classifications: N55, O13, P28

Description: The study examines gas flaring and crude oil revenue in Nigeria. The study used secondary data for 14 years from 2000 to 2014 inclusive to analyze the issue using multiple regression analysis. The study employed time series data hence, a unit root test is conducted and found that they are stationary at level. Using three variables, gas flaring as the aggregate amount of gas flared by oil producing companies in Nigeria as an independent variable and crude oil revenue as an aggregate of revenue generated from all oil companies crude oil as dependent variable and tax as penalty on flaring is used as a control variable, the findings of the study show that gas flaring has a negative impact on Nigerian crude oil revenue and is statistically significant. From the research there are strong indications that the implementation of regulations and incentives to abate gas glaring in Nigeria has to be improving in other to increase revenue generated from crude oil. The author suggests that government should embark seriously on gas utilization policy and increase the penalty for companies who still engage in gas flaring. In addition, the government should utilize the gas flaring for electricity generation or implore another means of either utilizing it or curtail it. Keywords: Gas Flaring; Carbon Emission; Crude Oil Revenue JEL Classifications: Q51, Q53, Q56

Description: Marginal oil and gas field could contribute immensely to wealth creation, employment generation and confidence in local oil firms if properly exploited by the indigenous firms. Despite the laudable marginal field initiative by the Government, indigenous players still face challenges in exploiting these fields in Nigeria. This study evaluates the fiscal regime and the economic factors that could be hindering oil field development among the indigenous oil firms. The result of the financial cash flow modelling found that the marginal oil field’s project is viable with post-tax Net Present Value (NPV) and Expected Monetary Value (EMV) above $29 million. The petroleum profit tax, royalty and crude oil price have more impacts on the field’s NPV. The study suggests a periodic assessment of the fiscal regime and appropriate policy by the government to encourage the local players in developing the marginal oil field. Keywords: indigenous, marginal oil and gas field, Financial Simulation, government JEL Classifications: F38, Q47

Description: Russia is one of the most polluting countries in the world and environmental problem is very important in this country. The forecast of atmospheric emissions was conducted according to various economic development scenarios in Russia using dynamic Dynamic Input-Output Model. The optimistic scenario is realized under hypothesis about oil prices increase and real ruble exchange rate strengthening beginning of the end of 2015, the revival of investment processes, the successful policy of import substitution, and the competent using of instruments of monetary and fiscal policy. The pessimistic scenario is implemented under assumption of negative economic tendency prolongation of the 2014. Future increase of environmental pressure will be expected in optimistic scenario. The improvement of pollution taxes mechanism as a way of government ecological policy is discussed in the article. Keywords: Input-Output Model, environmental pollution, forecast of emission, pollution taxes JEL Classifications: E62, H23, Q32, Q38, Q42, Q5

Description: This study analyses the validity of environmental Kuznets curve (EKC) hypothesis for the Asia-Pacific Economic Cooperation Forum (APEC), within the period 1992-2012. Three econometric models are performed, which use different environmental quality indicators as dependent variable. Model 1) uses CO 2 total emissions in APEC, model 2) uses CO 2 emissions generated from coal consumption, and model 3) uses CO 2 emissions generate from petroleum consumption. Pedroni and Kao cointegration approach are applied for testing long-run relationship between variables for each model. Fully modified ordinary least squares (FMOLS) method is employed for determining the elasticities of the long-run relationships. The analysis finds that an EKC is held under model 1, and 3, but for model 2 the relation between the variables does not show an inverted U shape behavior. Additionally descriptive analysis and model 2 suggest that coal consumption has been increasing in last years, because of the effect in CO 2 emissions; even more in this specific indicator, economic activity is leading to an unsustainable growth scenario in APEC. Keywords: Environmental Kuznets curve, CO 2 emissions, economic growth. JEL Classifications: Q5, Q56

Description: Investment in infrastructure, although historically dominated by public intervention, are experiencing a growing role for public and private partnership. This trend traced a steady increase since the start of privatization and liberalization process that took place in most OECD countries in the 90s and peaked in 2012. Middle East and North African (MENA) countries are hungry for infrastructural investment, but looking at the consolidated global trends in energy investment, it emerges that its performance is particularly poor in attracting private participation. However, Morocco was able to figure among the top destination countries for energy investment. Together with Jordan they represent the only two countries able to attract energy investment in the region mostly in renewable energy technology. Evidence shows that Morocco and Jordan are those that perform better in terms of political stability score and rule of law score according to the World Bank. The institutional and political endowment in MENA countries appear to be inappropriate to secure the level of infrastructural investment in the energy sector, in particular when dominated by long lead times and irreversibility. In this context, renewable energy sources investment offer a valid alternative, when the necessary pre-conditions are put in place and when the regulatory design is able to offset, at least partially, the higher country risk that investor are likely to face. Keywords: Public Private Partnership, Investment, Middle East and North Africa, Energy Transition, Institutional Endowment, Renewable Energy Sources Investment JEL Classifications: D02, L43, O13

Description: This paper aims to analyze drivers of energy consumption in EU in recent period and identify the role of energy efficiency in it. We analyzed energy consumption using LMDI decomposition technique on three different levels of data aggregation for EU 28 countries in pre-crisis period (2004-2008) and crisis period (2008-2012). Our paper challenged the view that recent decline in energy consumption is caused by economic slowdown as improvements in energy intensity EU countries seems to be slowing down. We conclude that intensity effect was the major factor influencing energy consumption, while the contribution of activity effect representing the performance of economy was of less importance. The impact of structural effect was only of minor magnitude but interestingly has larger influence during the period of oil prices surge than in period of high oil prices. Our evidence also suggests that structural changes of economies towards service sector will likely lead to lower improvements in energy efficiencies. Keywords: Energy efficiency; energy consumption, EU; energy intensity JEL Classifications: O13; Q2; Q 3, Q 4

Description: Sustainable Development enhances the human life, with good eco facilities. The way to move toward the sustainable development is by giving best solutions to the issues of unbalanced ecological, environmental and economic development. This paper investigates the relationship between the environmental performance and the profitability variables such as ROA, ROE, ROCE, and ROS of the sample firms in India. Granger Causality Test was used to examine bidirectional causality running from Energy Intensity to Profitability of the Firm. The study identified causal relationship that existed among the environmental performance and profitability of the firm. Further, it is found that there was an inverse relationship between ROCE and energy intensity of the firm while direct relationship existed among ROA, ROE, ROS and Energy Intensity. It is suggested that the practitioners, policy makers etc. may adopt the environment friendly technologies and encourage the Indian firms to use more energy efficient technology. Keywords: Environmental Performance; Firms’ Profitability; Energy Intensity; Causal Effect JEL Classifications: L25; M14; Q51; Q01; Q4

Description: Biomethane is an interesting source for sustainable energy systems, featuring great flexibility that translates into multiple possible applications (vehicle fuel, combined production of thermal and electrical energy, injection in the gas grid). Compared to biogas, biomethane permits greater efficiency. Its use is not limited to the immediate area of the plant and purification of the raw methane means greater lifespans for the equipment. This paper analyses its use in the transport sector in light of recent statutory changes that introduce incentives. Net Present Value (NPV) and Discounted Payback Time (DPBT) are applied for the evaluation of profitability of biomethane plants, and are calculated in function of the feedstocks used, the plant dimensions and the firm configuration (producer and distributor combined; separate firms). Environmental considerations and a high number of natural gas vehicles (NGVs) define its strategic role in the Italian transport sector. Keywords : biomethane; economic development; sustainability JEL Classifications : 018; Q2

Description: Thailand, as the largest electricity market for Laos, has imported significant amounts of electricity from Laos since the operation of first hydropower plant in Laos. However, currently there have been a number of new power particularly nuclear power plants in Thailand being studied implying the possibility of reduction in Thailand’s electricity import from Laos. Since Thailand is the largest market of Laos’ electricity, the change in demand for electricity from Thailand has substantial impact on the Lao economy. The first simulation conducted in this paper shows that Thailand reduces the import of electricity from Laos shows that it statistically has a large impact on Laos’ electricity export sector, due to the reduction of income from electricity export. However, the feasibility of nuclear power projects in Thailand became unclear since the incident of damages of nuclear power plants in Japan on 11 March 2011. Therefore, there may be a possibility that Thailand may abolish the nuclear power projects. Consequently, Thailand may increase the import of electricity from Laos. The second case of simulation shows that the increase of Thailand’s electricity import from Laos has positive effect on Lao economy through the significant increase in income from electricity export. The increase in Thailand’s electricity import from Laos, not only has positive effect on Thai economy in terms of increasing consumption of electricity stimulating economic activities in Thailand, but it also has positive effect on Lao economy in terms of increasing income from electricity export. Keywords: Electricity Export; Laos; Simultaneous effects; Thailand JEL Classifications: C5; Q43

Description: Reciprocal application of sanctions due to geopolitical instability in Ukraine, led to the rupture of economic ties and investment cooperation between the Russian Federation and the European Union. Further escalation of the confl ict can lead to the formation of a new cold war and the reorientation of the world economy. In connection with this assessment of the risks and challenges of mutual economic development in the Eurasian continent becomes particularly relevant theme. The study reviews the current economic partnership between the Russian Federation and the European Union. Actualized data on the implementation of joint investment projects. In conclusion reveals the degree of mutual economic risks in case of continuing the policy of restrictive measures. Keywords: Sanctions, Restrictive Measures, Energy Dependence, The Reorientation of Markets JEL Classifications: F63; O52; P17; P27

Description: Considerable changes have taken place in power production investments in Turkey within the last decade. As a result, an increasing number of investments in this sector have been terminated or cancelled and still continue to do so. When these investments are analyzed, significant issues attributed to misconceptions on cash flow estimations, local community objections, changes in the Environmental Impact Assessment Regulation interpretations, diminished trust in the conducted project evaluations and the associated reduction of capital and funds have been observed. Thus, the main contributors and their underlying reasons for these issues are examined in this study. In order to determine the associated key aspects and parameters, a survey has been developed and distributed to companies working on the renewable energy sector with questions regarding the number and the size of the licenses they have, the percentage of them turning into investments, the major methods of financial evaluation they use in the decision making process, their ability to calculate the cash flows during project evaluation process and the modelling of associated risk factors in the renewable energy sector. Keywords: Project evaluation methods; power production; license termination; Turkey JEL Classifications: O220; O250; Q280     

Description: Numerous studies have investigated the dynamic interrelationship between carbon emission trading market and energy markets. Previous studies focused on the European Union Emissions Trading Scheme ascertain that carbon market and energy markets are closely attached, and find that electricity market is the main driver of the system. Our research on U.S. Regional Greenhouse Gas Initiative (RGGI) using Lag Augmented Vector Autoregression reveals that the RGGI market and electricity market in the region are tied but not strongly, unlike the EU-ETS. This loose relationship between the two markets might be explained by the recent weak carbon credit demand stemming from fuel switching and low electricity demand. Another finding is that natural gas is the main driver of the RGGI system, which is possibly due to from the recent shale gas boom. Keywords : Carbon emission trading; Lag Augmented Vector Autoregression; Regional Greenhouse Gas Initiative  JEL Classifications : C32; Q52; Q53

Description: This study examines the Turkish crude oil import demand for the period of 1970-2013. Unlike earlier studies on Turkey, we tested the income and price elasticities of crude oil demand with structual breaks. In emprical analysis, the income and the price of crude oil used as a function of crude oil import demand. We employed Carrion-i-Silvestre et al. (2009) test for testing unit root, Maki (2012) cointegration test employed for testing for the existence of relationships. DOLS estimation employed for the estimating the long-run income and price elasticities. The empirical results show that the partial elasticities of crude oil import demand; income is (0.18) and crude oil is (-0.25). In the light of these results, it is said that income and price elasticities of demand for crude oil import in the long-run are inelastic. Furthermore, we used dummy varibale for testing internal and external crisses affetct. We conlcuded that the external crises had major impact on import oil demand on the contrary to internal crises in the long run. Keywords: Income elasticity; Price elasticicy; Structual Breaks JEL Classifications: C22; F10; F14

Description: This paper examines the effect of oil price on coal sector stock returns. A multifactor market model is used to estimate the expected excess returns to the coal sector. A 1% increase in oil price return has a statistically significant positive impact on coal sector returns of between 0.06% and 0.20%. A 1% increase in coal price raises the return of coal sector returns by between 0.22% and 0.30%. Increased volatility in oil price return significantly reduces coal sector return. Participants in energy markets may perceive oil price as being determined globally and as providing information on demand for energy overall. Understanding the variables that affect the behaviour of the stock prices in the coal is of importance to market participants and policy makers, and is helpful in developing efficient hedging policies to deal with changes in energy prices Keywords : coal sector return; oil price; coal price  JEL Classifications : G15; O13; Q4

Description: The main objective of this study is to directly examine the relation between real oil price and real effective exchange rate in Thailand during July 1997 to December 2013. Under the floating exchange rate regime, bilateral exchange rates are expected to fluctuate more than under the fixed exchange rate regime. The monthly data of real effective exchange rate index and real oil price are used. The results from this study reveal that there is no cointegration and causality in levels of the two series. However, an increase in oil price volatility causes real exchange rate volatility to increase. This main finding gives some policy implications to policy makers. Keywords : Oil price; real exchange rate; bivariate GARCH; volatility spillover. JEL Classifications: C22; G40

Description: This article investigates the relationship between economic growth, renewable energy consumption, gross fixed capital and total number of labor for 1980-2012 in selected OECD countries in terms of sustainability. Four OECD countries are included in our model in order to differentiate the relationship between nuclear energy consumption and economic growth in more developed OECD countries such as the U.S. and Germany with less developed OECD countries such as Turkey and Italy. According to the results of ARDL approach, the effect of renewable energy consumption on GDP is positive in both U.S. and Germany whereas renewable energy consumption has negatively correlated with GDP in Italy and Turkey. It can be concluded that renewable energy consumption has positive effect on economic growth only in more developed countries. Keywords: Economic Growth; Sustainable Development; Renewable Energy; ARDL Bound Test. JEL Classifications: F43; Q01; Q43; Q56

Description: This study aims to examine the dynamics of the relationship between world crude oil prices and Indonesian stock market within the period of January 1 st , 2004 to December 31 st , 2013. The world crude oil prices referred to the price of West Texas Intermediate crude oil (WTI), whereas the composite indexes at the Indonesian Stock Exchange were used as indicators of the stock market in Indonesia. Daily data were analyzed by employing the LVAR causal model. The test results showed that there was a significant dynamical relationship between world crude oil prices and Indonesian composite index, both in the long-term and in the short-term. The dynamics of this relationship is positive, meaning that if the world crude oil price rises (falls), then the composite index also rises (falls). This finding is in the need for Indonesian government to be considered in their economic policy, as well as for investors to manage their investment portfolio. Keywords : World crude oil price; Stock price; LVAR analysis JEL Classifications : C51; C58; G12; Q41; Q43

Description: The study examines the existence of a long run effect of fuel subsidy reform on environmental quality in Nigeria for the period of 1970-2012 using the Johansen and the Engle-Granger two step co-integration procedure techniques. The study developed a three case scenarios including i ) a case of subsidy payment, ii ) a case of effective subsidy and, iii ) a case of no subsidy payment. Findings from the study supported evidence of a long run sustainable equilibrium model. Also, our estimation results showed that the first and the last case scenario do not significantly influence environmental quality. This implies that subsidy payment in Nigeria does not enhance access and consumption of liquid fuel. On the other hand, the interaction of sound regulatory framework with subsidy payment (the case of effective subsidy) significantly exerts a responsive influence on environmental quality. Keywords: Subsidy Reform; Environmental Quality; Climate Change; Johansen Cointegration JEL Classifications: H23; Q51; Q54

Description: This paper investigates the factors that influences the change in CO 2 emissions from electricity generation in Nigeria. The Logarithmic Mean Divisia Index (LMDI) method of decomposition that was used. The main result shows that: (1) CO 2 emission from electricity generation decreased by 0.59 Mt. (2) Electricity efficiency decreased CO 2 emission by 2.33 Mt. (3) Electricity intensity decreased CO 2 emission by 21.85 Mt (4) Economic activity increased CO 2 emission by 28.27 Mt. The result from the analysis shows that CO 2 emission increased in Nigeria. Electricity efficiency and intensity contributed to the reduction of CO 2 emission while economic activity has contributed to the increase in CO 2 emission in Nigeria. Since economic activities can not be reduced without affecting the economic performance of Nigeria, energy efficiency improvement would be an important option to reduce CO 2 emissions. Keywords: Nigeria, decomposition analysis, CO 2 emission from electricity generation, electricity efficiency, electricity intensity JEL Classifications: C01; Q41; Q43

Description: In the energy-growth nexus, due to structural change that cannot be accounted for in the linear model this study considers the possibility of the nonlinear model. Using dataset for fifteen countries in Africa for the period 1980 to 2010, we found that linear model has misspecification error, thus, lending support for the nonlinear model. We provide evidence of inverted “U” shape in Benin, Cote d’Ivoire, Egypt, Togo and Tunisia. This also confirms EKC hypothesis. The low regime of energy consumption retards growth in Sudan and South Africa, while high regime of energy consumption enhances growth in Algeria, Morocco and Senegal. We also find evidence of neutrality hypothesis in Cameroon and Zambia. Keywords: Energy consumption; Economic Growth; Threshold regression model; Africa JEL Classifications: C22; O40; Q53; Q56

Description: This paper investigates the impact of historical crude oil-price fluctuation on diverse economies. It employs the use of Structural Vector Autoregressive (SVAR) and Panel Vector Autoregressive (PVAR) methodologies as innovative paths of investigating oil-shock association. While evidence of linear and non-linear shock specifications hold for developed economies within the SVAR specification, growth patterns for emerging counterpart are only defined by the linear shock. The asymmetric behaviour of growth response along shock specifications and development is predisposed to two main channels: First is the differential systemic and institutional framework in place across economies, making shock vulnerabilities differ. Secondly, identification restrictions imposed within SVAR methodology is perceived to have overruled conditions consistent with the non-linear shock model. Positive oil-price shocks benefits accrue to the global community through investment while negative oil-price shocks are transmitted through interest rate triggered trade cut-backs. Keywords: Oil-price Volatility; Asymmetric Growth; Structural Vector Autoregressive (SVAR); Panel VAR Methodology; Trade; Investment JEL Classifications: C01; O47; Q32; Q40

Description:             The article studies of asymmetric price transmission of gasoline price and diesel price and their causes in Thailand.  The study employs the monthly data of West Texas Instrument crude oil price, unleaded gasoline price and high speed diesel price, the oil fund, the stock of unleaded gasoline and high speed diesel inventories.  The results show that asymmetric price transmission exists for unleaded gasoline but not for high speed diesel.  The oil fund does not influence on the price asymmetry.  Whether the oil fund is levied, the price asymmetry always presents for unleaded gasoline but not for high speed diesel.  Moreover, the marketing margins or firms’ profits do not cause the asymmetric price for both.  However, the oil fund and the marketing margins could make unleaded gasoline prices adjust more quickly but high speed diesel more slowly.  The government is successful to use the oil fund directly to regulate the market gasoline and diesel price.  The firms’ monopoly power could also indirectly maintain those prices stable and make unleaded gasoline price adjust more slowly and high speed diesel more quickly.  Finally, the stocks of unleaded gasoline and high speed diesel do not have the effects on the price asymmetry.  The asymmetry is influenced mainly by the oil fund and the marketing margins.  Firms do not need to adjust their price and their quantity.  Keywords: asymmetric price transmission, oil fund, marketing margins, and stock of inventories. JEL Classifications: C32; Q41; Q48

Description: This paper seeks to explain the persistence of a business model that was instrumental in creating pan-European natural gas markets but refused to retire when the markets outgrew it. Long-term oil-indexed agreements enabled the emergence of international gas markets in Europe since the early 1960s and they still govern gas imports to the EU. Yet, they failed to evolve with the changing business environment, resulting in the strategic costs for the companies. A politicized topic, research has thus far focused on national and regional levels, largely ignoring company level processes. This article contributes to the understanding of European gas markets by introducing a company level behavioral explanation of the endurance of an institutionalized but seemingly outdated business model. Path dependence is found to be a major contributing factor of the behavior of agents. Business leaders and governments alike will benefit from learning to identify and avoid path dependent behavior that leads to potentially sub-optimal outcomes. Keywords: Gas trade; Gazprom; Path dependence JEL classifications: F; M; Q

Description: The goal of this paper is to examine the empirical dynamic relationship among the electrical consumption and economic growth (proxies by GDP per capita), export, and financial development (domestic credit to the private sector as a percentage of GDP) in Jordan over the 1976-2011 period. Annual time series data and the Autoregressive distributed lag (ARDL) model are used. The ADF, F-bound testing, Granger causality, GIRF, and CUSUM, CUSUMQ tests were applied to test the stationary, co-integration, causality and stability, respectively, among the variables. There is evidence of a long-term equilibrium relationship between electricity consumption and the economic growth, and a unidirectional relationship runs from real GDP to electrical consumption (ELC). This is indicating that per capita increase in economic growth may cause a perpetual rise in the ELC in Jordan. Keywords:   Electricity Consumption; Economic Growth; Co-integration; ARDL; Causality; Jordan. JEL Classifications: C32; O13; O20; Q43

Description: This study has applied a recursive dynamic CGE model to examine the economic impact of investment on infrastructure for electricity using an updated 2009/10 Social Accounting Matrix. Three simulations (foreign saving, domestic household and enterprises saving and mix of foreign and domestic saving to finance the investment) in combination with TFP of industrial and service sectors are used. The findings of the study have shown the improvement of the real GDP, output of industrial and service sectors in all simulations. Nonetheless, mixed effects have found on household consumption and trade balance. The highest growth of real GDP is registered when the investment on electricity is fully financed by domestic household and enterprise saving. However, household consumption expenditure has grown at negative rate worsening the welfare of households. Investment on electricity fully financed by foreign saving is resulted in lower growth rate of real GDP due to worsening of net export. In addition, it has benefits for households as it increases their welfare. But it is to be repaid in the future that would increase indebtedness of the country. So, financing the investment partly by domestic household saving and foreign saving would be worthwhile. Keywords: Electricity Infrastructure, Economy, Recursive Dynamic CGE Model JEL Classifications: C6; Q4; Q43

Description: Power industry like other network industries, due to economies of scale, has monopolistic operation for many years. Over the last three decades, electricity sectors in most countries have experienced major structural changes including entry of private capital and competition increase. Although the effects of such reforms in developed economies are now well documented, in developing countries, a few studies have examined the effects of these changes due to a variety of reasons. In Iran, structural problem is one of the main problems in the energy sector, which has had an important role in low efficiency of this sector. To solve this problem, in two past decades, restructuring and promoting competition have been in the forefront of government policy and programs in the energy sector. So that substantial reforms occurred in electricity industry structure after establishing power market in 2003. After a decade of reforms in power market, it is necessary to investigate the effects of these reforms on electricity supplier performance, since it will be helpful for progress of electricity industry restructuring and implementing similar reforms in other network industries. The aim of this study, given its real importance in the issue, is examining the effects of market restructuring on technical efficiency in thermal power plants of Iran. For this purpose, technical efficiency of 35 thermal power plants has been calculated in the period 1999 to 2011 using DEA method, then the impact of market restructuring on technical efficiency has been estimated by applying Panel Data Tobit model. The results indicated that market restructuring has had positive effects on technical efficiency of power plants. Keywords: Electricity Industry; Market Restructuring; Technical Efficiency; Thermal power plants; Panel Data Tobit. JEL Classifications: C14; C51; C61; D24; L33; L51; L94       

Description: This study aims to explore both the long-run and causal relationships between electricity consumption per capita, real GDP per capita, trade openness and foreign direct investment inflows per capita in Turkey during the time period 1974–2013. The study employs the ARDL model and the Augmented Granger causality model. The bounds F–test for cointegration test yields evidence of a long-run relationship between variables. The overall results from the three error-correction based Granger causality models show that there is an evidence of unidirectional short-run, long-run and strong causalities running from the electricity consumption per capita to real GDP per capita.  But, there is no causal evidence from the real GDP per capita to electricity consumption per capita. This result also support that, “Growth hypothesis” is confirmed in Turkey. As a policy implication, the energy growth policies regarding electricity consumption should be adapted in such a way that the development of this sector stimulates economic growth. Keywords: Electricity consumption; Economic growth; Causality JEL Classifications : C32; C52; Q43

Description: This paper assesses empirically the asymmetric effects of real oil price shocks on the industrial production, real exchange rate and inflation in Kazakhstan for the monthly period 2000-2013 by using a Structural VAR model. Structural VAR analysis is carried out using the scaled model. The empirical findings show that the negative oil price shocks have a larger impact on Kazakhstan economic performance. Keywords: Oil price shocks, structural VAR, asymmetric effects, Kazakhstan. JEL classification : C22; C32; Q43 

Description: This study examines the causal relationships between economic growth, carbon dioxide emission and foreign direct investment and evaluates the Environmental Kuznets Curve (EKC) hypothesis for Turkey in 1974-2011. Firstly, the causality relationships investigated by using the Johansen Cointegration Test, The Granger Causality Test, Impulse-Response and Variance Decomposition Analysis of Vector Autoregression Model (VAR) model. The causality relationships display that foreign direct investment (LFDI) and economic growth (LGDP) have a significant effect on carbon dioxide emissions (LCO2). Moreover, impulse-response functions and variance-decompositions of VAR model support these relationships among LGDP, LCO2 and LFDI. Secondly, the study investigates the validity of the EKC hypothesis in Turkey for the period 1974-2011 by using Regression Model approach for the various EKC model forms such as linear, quadratic, and cubic. Consequently, economic growth leads to degradation of environment and depletion of natural resources. It must be the major aim to obtain a sustainable economic growth by less CO2 emissions and consuming less energy. Moreover, the policy makers may take account exogenous impacts such as foreign investments to plan energy policies, and to maintain economic growth against global climate warming. Keyword: EKC Hypothesis; CO2 Emission, Economic Growth; Granger Causality; Johansen Cointeration; Impulse-Response. JEL Classifications: C58; C51; Q43; Q56

Description: This paper investigates effects of shocks in the share of renewable electricity in total electricity generation on real output growth and CO 2 emissions in China, Japan and India from 1970 to 2011 using Structural Vector AutoRegression analysis. These economies are assumed to face exogenous correlated random shocks in the share of renewable electricity in total electricity generation (RT). The substantiality of the shocks’ impact on real output growth and CO 2 emissions were examined using impulse responses and variance decompositions. The impulse responses show that positive shock in RT positively affects real output growth and reduces CO 2 emissions. Shocks in RT have long-lived impacts, but all countries show stability signs and absorb RT shocks with some delays. Variance decompositions analysis corroborates the findings of impulse responses. These research findings support governmental initiatives that reduce CO 2 emissions through renewable power generation and ensure sustained economic growth. Keywords: Renewable Electricity; CO 2 Emissions; Economic Growth JEL Classification: 013; Q5; Q42; Q43; Q56

Description: Our objective in this paper is to contribute to the discussion and identify, in the short-run, the effects of basic financial indicators (Equity, Bonds, Exchange Rates, Baltic Exchange Dry Index) and widely traded commodities (Gold, Wheat) on the crude oil market. A GARCH model is employed to test the above hypothesis for the period of almost ten years using daily data from June 1st, 2004 to May 30th, 2014. The results coming out of our investigation suggest that wheat and bonds markets have negative impact to the oil market. Also, the results indicate that the volatility of U.S. $/Yen exchange rate and the volatility of Baltic Exchange Dry Index influence significantly negatively the oil market. Lastly, our findings indicate that both, gold market as well as stock market, positively influence the oil market, confirming the relevant literature which was reviewed and summarized. Keywords : GJR-GARCH model, Crude oil WTI, Gold, Equity market, Exchange rates, Bonds market, Commodities, Baltic Exchange Index. JEL Classifications: G10; Q40

Description: In this study we review literature related to short-term forecasting of spot electricity prices using Artificial Neural Networks in deregulated competitive power markets. With accurate price forecasts, power market participants can maximize their profits and meet their power commitments using a proper combination of power purchase agreements, bilateral trade and buying/selling electricity through power exchanges in a judicious, efficient and effective manner. Artificial Neural Network models may truly be an answer to short-term electricity spot price forecasting viz-a-viz time-series econometric models. Keywords: Artificial Neural Networks, Spot Electricity, Short term, Forecasting, Power Exchange, Review JEL Classifications : C01; C22; C53

Description: This study analyzes residential electricity demand in the state of Arkansas using an error-correction approach that examines both long-run and short-run dynamics. As in prior studies, results indicate that higher electricity prices reduce consumption in the long-run, but not in the short-run. With respect to variations in household income, residential electricity is treated as a normal good.  The long-run income elasticity estimate is about twice as large as the short-run estimate. It is suggested that the muted short-run responses to price and income variables may reflect limited capacity to adjust the stock of electricity-consuming household devices over the short-term.  More surprisingly, households are found to treat electricity as a normal good in the short-run, but have an upward sloping demand curve associated with it. The overall results suggest that increasing generating capacity in Arkansas will be feasible using the standard approach of incremental rate increases. Keywords : Residential Electricity Consumption; Regional Economics; Business Economics JEL Classifications : M21; Q4; R15 

Description: This paper examined the oil futures and the carbon emissions futures volatility comovements and spillovers for crude oil, gasoline and heat oil as well as carbon emissions. The data used in this study was the daily data from 2009 to 2014. The three multivariate GARCH models, namely the vector autoregression model (VAR) (3)-diagonal VECH, the VAR (3)-diagonal Baba, Engle, Kraft and Kroner (BEKK) and the VAR (3)- constant conditional correlations (CCC), were employed. The empirical results showed that the estimates of the VAR (3)-diagonal VECH and the VAR (3)-CCC parameters were statistically significant in a case involving oil except in the case of carbon emissions. This indicates that the short run persistence of shocks on the dynamic conditional correlations was greatest for RGASOLINE with RHEATOIL, while the largest long run persistence of shocks to the conditional correlations for RCRUDE with RGASOLINE. At the same time the VAR (3)-diagonal BEKK parameters were statistically significant in all cases. This indicates that the short run persistence of shocks on the dynamic conditional correlations is greatest for RHEATOIL with RCO2, while the largest long run persistence of shocks to the conditional correlations for RCRUDE with RCO2 and RHEATOIL with RCO2. Finally, we would choose the best model next by considering the value of log-likelihood, Akaike information criterion, Schwarz information criterion and Hannan-Quinn information criterion. The value of these figures, it could be concluded that we should choose the VAR (3)-diagonal BEKK model in volatility analysis of the oil futures and the carbon emissions futures returns. In addition, we could conclude that oil futures volatility having an impact on carbon emissions futures volatility. Keywords: The Oil Futures and the Carbon Emissions Futures Volatility; Comovements and Spillovers; Multivariate GARCH Models JEL Classifications: C13; C32; G13

Description: In this article, we set ourselves a task of determining a potential of using credit for improving energy efficiency in the economy of rent seeking. Based on cross-country analysis and using channels’ approach to estimation of institutions’ and market’s efficiency we come to conclusion that persistently low energy efficiency in East European countries may be a result of low quality market institutions. Testing a hypothesis of credit being the source of improving energy efficiency (e.g., through introduction and granting energy efficient loans) showed that the effect of credit channel is negative in case of low quality institutions in the economy and low elasticity of national markets. On opposite, credit is capable of breaking the energy curse, when successful institutional infrastructure is functioning, and competitive environment takes its place when geographical and spatial features are taken into account. Keywords: energy efficiency; rent seeking; credit market. JEL Classifications: E02; G21; O13; Q43

Description: The Indian Electricity Act 2003 defines power trading as "The Purchase of electricity for resale thereof". In this study, we review various facets of power trading, Indian electricity market, power exchanges and the day-ahead spot electricity market of India. The power exchanges are attributed with inherent features like being nationwide, ensuring anonymity, offering transparency, being automated and enabling efficient price-discovery, we believe that, power trading in India is all set to undergo a paradigm shift in terms of volume of transaction through power exchanges, price discovery, number of participants and will eventually ensure in playing a major role in addressing the biggest concern of supply-demand mismatch of electricity in India. Keywords: Power Trading; Energy Exchanges; Indian Electricity Market JEL Classifications : C01; C22; C53

Description: As rice husk is abundantly natural resource in Thailand, it has been used as the biomass energy resource in the stream turbine power plants, in particular to Very Small Power Producers (VSPPs). The VSPPs’ plants produced by rice husk is generally found in many regions of Thailand, however its performance efficiency and optimization has never been assessed at any level. This study aimed to fulfill this gap by adopting the method of Data Envelopment Analysis (DEA) to relatively measure the performance efficiency of the decision making units (DMUs), as well as to adjust input surpluses found in order to maximize the overall efficiency scores. The secondary data recorded in 2012 were collected from the power policy bureau of Thailand and Energy for Environment Foundation, totally 47 rice husk steam turbine power plants. The empirical results showed that a CRS-DEA and VRS-DEA model performed efficiency scores at 0.874 and 0.882, respectively. The input surpluses of capacity and purchasing cost of rice husk were emphasized to increase its unit efficiency. Achieving the Thai government’s aim of sustainable, renewable energy would boost up many utility plants to use rice husk for electricity generation in the nearer future. Keywords: Biomass; Data Envelopment Analysis; Stream Turbine JEL Classifications: Q420; M110

Description: This paper discusses the important development of electricity production from renewable energy in Spain. The regulatory framework has played a key role in this process, particularly the 661/2007 Royal Decree of May 25. The legislation grants certain rights to promoters. These rights can be characterized as options, allowing us to utilize a signifi cant number of theoretical and empirical studies in the fi eld of fi nancial option pricing in our analysis. Insofar as these derivative assets have underlying real and non-fi nancial assets (i.e., a wind farm), the rights provided for in Royal Decree 661/2007 can be considered real options. In this paper, a method is proposed to evaluate investment projects in Spanish wind power based on the Royal Decree. The value of these projects is certainly affected by the real options contained in the Royal Decree. Finally, public aid granted by the administration for the development of renewable energies is evaluated. Keywords: Real Regulatory Options, Renewable Energy, Project Valuation JEL Classifications: C63, H43, H54, H71, L51, L94, L98

Description: The article provides a review of international experience in the field of electricity markets integration in Central American countries and EPEX SPOT zone. The revision of earlier results for Nord Pool, NAFTA and MERCOSUR is given. Conclusions about common positive and negative factors affecting the process of integration are derived. Keywords : Electricity, Integration, Regional markets, Cross-border trading JEL Classifications: O240; R110

Description:     The main purpose of this study is to examine the linkage among energy consumption, Foreign Direct Investment (FDI), financial development and trade for the selected ASEAN countries namely Indonesia ,  Malaysia , the  Philippines , Singapore , and  Thailand . After employing appropriate tests of stationarity, long run-relationship and Granger causality test reveals that there exists significant long-run relationship among all explanatory variables namely FDI inflows, trade, financial development and energy consumption. The ARDL bound tests approach further confirms the long-run relationship among set of regressors. Results on Granger causality reveal that in the short-run unidirectional causality running from FDI inflows to energy consumption, energy consumption to financial development, and energy consumption to trade. Whereas, results also show that there exists bidirectional causality between trade and energy consumption, energy consumption and FDI, trade and FDI, energy consumption and financial development, trade and financial development during the period under the study. The empirical results reveals that policy makers needs to formulate appropriate and prudent policy to encourage FDI inflows, improve financial sector development, expand exports volume and sustained energy supply, while keep in mind to achieve sustainable economic growth and development  in the ASEAN region.    Keywords: FDI; financial development ; trade; energy consumption; ASEAN JEL Classifications: Q43

Description: Energy efficiency is the simplest and cost-effective approach for power and process industries to meet a growing demand for cleaner energy, and this applies to the power generating industries as well. Energy efficiency of fossil-fuelled power systems in developed as well as developing countries is abnormally low, consuming high quantity of fuel to generate per unit electricity, which is a fundamental issue throughout the globe. Though energy efficiency improvements are possible at all sections of a power system, this paper put forward an energy efficiency enhancement opportunity at the power generation station itself by proper scheduling of the generating units. To show the efficacy of the proposed strategy, an economic dispatch algorithm has been applied to several dissimilar realistic systems at different load conditions and the outcome of one such realistic system is presented in this paper. Keywords: Energy efficiency enhancement; fossil-fuelled power systems; generation scheduling JEL Classifications: B4; C8; L8; O1; O3

Description: This paper investigates the price spread between West Texas Intermediate and Brent during periods of supply disruptions. Using a sample of 50 events of Organization of the Petroleum Exporting Countries (OPEC) - related unplanned upstream production outages, this paper documents a statistically significant tightening in the price differential. The finding is robust even after accounting for 22 OPEC - related political conflicts, 104 extreme weather conditions in the Atlantic basin, and the period of infrastructural bottlenecks in and around the Cushing, Oklahoma. The result is further confirmed when examining the spread between Light Louisiana sweet and Brent. These findings suggest the need to hedge against such risks and give rise to speculative trading which can be facilitated using the vibrant paper markets. Keywords: Crude Oil, Benchmarks, Organization of the Petroleum Exporting Countries, Supply Disruptions JEL Classifications: G12, Q34, Q41

Description: This article contribution is two-fold. It presents new results based on quarterly frequency disaggregated data for the Czech Republic. It also goes through extensive identification of methodological deficiencies present in the literature and proposes a methodology to determine the direction and also the sign of the causality in the energy-economy nexus. The proposed improvements are illustrated on the case of Czech Republic during the period 1996-2011 in quarterly frequency. The data are taken in disaggregated form; the model estimates cover aggregate and sectoral levels of final energy consumption, and also fuel-specific consumption and sectoral electricity consumption. The evidence for the conservation hypothesis with a positive sign of the causality is found for, (i) The consumption of the solid fuels, (ii) the electricity consumption in the transportation sector, (iii) the final energy consumption of the industrial sector, and (iv) the electricity consumption of the industrial sector. Given the fact the solid fuels are: (a) Used heavily for the electricity generation in the Czech Republic, (b) the main differentiating fuel between the Czech and European Union industrial energy consumption, and (c) could contribute to the other environmental targets, it seems reasonable to favor the reduction of the solid fuels consumption in the Czech energy conservation plans. Keywords: Energy; Gross Domestic Product; Energy conservation; Czech Republic JEL Classification: Q43

Description: The aim of this study is to assess the technical, economical and environmental aspects on the application of the solar energy technology in Southeast Sulawesi, a developing province in eastern part of Indonesia. Mathematical models of the solar radiation falling on a tilted surface, the Levelised Cost of Energy (LCOE), and the solar lifecycle greenhouse gas and land use equivalent are employed to perform the assessments under a scenario of 5 percent solar power contribution in the electricity generation mix.  The result shows that the solar technology incorporated by tracking system generates the high annual energy generated. Under some technical and economical scenarios, it is possible for the technology to obtain lower energy costs than the solar Feed-in-Tariff and the electricity production costs from other sources. The solar power not only generates low carbon emission, but also requires less land use, relatively to the availability land in this province.   Keywords : Solar energy; economy; technical JEL Classifications: C4; C5; O05; Q2; Q4

Description: The political tensions which have emerged between Russia and the West after Ukraine crisis put the EU energy security problem at the top of the EU agenda. While dependency on Russia and bilateral agreements appear to be weaknesses of EU energy security, decline in demand among EU members and improvement in energy efficiency pose to be strengths. The EU has also some opportunities to deal with the crisis such as decline in oil prices and diversification of energy supply while falls in domestic energy production and Ukrainian question pose threats to the EU energy security. Keywords: Energy Policy; EU; Ukraine Crisis; Energy Security JEL Classifications: Q41; Q48

Description: The Russian government has set the target of reducing energy intensity of the GDP by 40% over the period from 2007 to 2020. To solve the problem, energy conservation and increasing energy efficiency programs are implemented at the national, regional and municipal levels. The reduction in energy intensity can occur not only as a result of special measures to save energy resources, but for other reasons. The effectiveness of energy efficiency policies should be judged by such indicator which would reflect exactly technological efficiency. The current system of accounting energy efficiency in Russia has not yet handled this problem. In this article the energy i ntensity index of physical volume of the gross regional product was calculated and analyzed based on Rosstat data over 2005-2013 for the 80 regions of the Russian Federation. Additive decomposition of electricity consumption increment in the regions according to such major factors as economic activity, the structural and technological factors was performed. Keywords: Energy efficiency indicators; aggregated energy efficiency indices; energy intensity of the economy JEL Classifications: E02; G21; O13; Q43

Description: Rosatom State Nuclear Corporation play a substantial role in the energy sector of the Central and Eastern European region and the behavioral characteristics of the company forms the basis of this article. Rosatom is positioned as the dominant provider of nuclear technology and fuel supplies to the region, in large part stemming from the Soviet legacy in CEE countries. Compounding this challenge, nuclear energy is one of the major sources of power generation in CEE. Given the long-time, near monopoly of Russian nuclear technology/design in the region and plans to expand further the nuclear capacity of select CEE countries, the sector requires careful monitoring from both a technical and security-minded perspective. Keywords:   Power Generation; Nuclear Energy; Central and Eastern Europe; Russian Federation; Rosatom State Nuclear Corporation JEL Classifications: H760; Q310; Q380; Q400; Q410; Q480; Q490

Description: Ensuring the security of the demand for energy exports and the supply of external energy is among the top priorities for Central Asian republics. This paper utilizes disaggregated Risky Energy Supply (REES) and Risky Energy Exports Demand (REED) indexes to measure the securities of energy supply and energy demand in the region. The results are compared to the indexes in the European Union (EU) and the Organization of Petroleum Exporting Countries (OPEC). Furthermore, this paper measures individual contribution of each Central Asian country to the regional risk exposure to disruptions of energy export demand and external energy supply. The REES indexes for coal and gas of Central Asian energy-importing countries are lower than in the EU, while the regional oil RESS index for oil is significantly higher than in the EU. The average REED indexes for both crude oil and gas are significantly lower than in OPEC economies. Keywords : Energy security; Central Asia; Energy export and supply. JEL Classifications : O13; P28; P48

Description: In the present paper an analysis of whether and under which conditions coupling or decoupling exists between growth rates (as reflecting in GDP rates) of the economy and energy consumption and air pollution from the transport sector. An extensive time period from 1995 to 2012 is surveyed and divided into two periods, from 1995 to 2008 (growth period) and from 2008 to 2012 (recession period). The analysis is conducted for the 28 European Union countries and illustrates, for most of these countries, a coupling phenomenon for the growth period and a decoupling phenomenon for the recession period. This finding may be essential for the further institutional steps to be undertaken, in view of the reduction of CO 2 and of energy conservation. Keywords: Coupling; Decoupling; Transportation; Environment; Sustainability JEL Classifications: H23; O44; R4; Q53 

Description: Energy is one of the most fundamental requirements for a sustainable economy in many of the emerging countries. Being one of these emerging countries, Turkey has inadequate energy sources and this increases its foreign source dependency for energy. Likewise, experiencing negative energy shocks decreases the economic growth rate.  Analyzing the relationship between energy consumption and economic growth by taking into account the structural changes caused by internal shocks and external shocks experienced in the country is of great importance for the Turkish economy. In this study, the long term relationship between energy consumption and real gross domestic production in the period between 1960 and 2012 has been investigated by employing co-integration methods and the vector error correction model. Results of our study show that there is a long term relationship between the series and one-way causality from real gross domestic production to energy consumption. These findings clearly state that economic growth has an important role in energy consumption. Keywords: Energy Consumption; Economic Growth; Co-integration Test with Multiple Structural Breaks JEL Classification: C32; O4; Q43

Description: The objective of the study is to examine the relationship between electricity consumption and its major determinants; particularly economic growth, number of electricity customers, electricity prices and electricity shortages in Pakistan using time series data from 1972 to 2012. The study employed the Johansen cointegration test to examine relationship between electricity consumption and its determinants. Multivariate granger causality test is then applied to determine the causality direction between electricity consumption and its major determinants. The results reveal that determinants of electricity consumption function are cointegrated and economic growth, number of electricity customers are positively related to electricity consumption, while electricity price and electricity shortages are negatively related to electricity consumption in Pakistan. However, bidirectional causality found between electricity consumption, economic growth and electricity customers except electricity prices which is exogenous determined. The short run, long run elasticities and multivariate granger causality results implies that at different time frame there is need to implement different policies for Pakistan. There is need to revise electricity pricing policy and find alternative renewable sources to generate low cost electricity and  further need to enhance energy management expertise to cope with crises in an efficient way. Keywords:   Electricity consumption; Economic growth; Electricity customers; Pakistan JEL Classifications: Q4; Q43

Description: This paper attempts to quantify the effects of oil price fluctuations on revealed symmetric comparative advantage (RSCA) for 95 manufacturing commodities of 5 ASEAN countries from 1991 to 2012. Using Zellner’s (1962) seemingly unrelated regression (SURE) model, oil price fluctuations negatively affect RSCA of more than 60% of the manufacturing commodities estimated. This is true especially for low-technology (LT1 & LT2) and medium-technology (MT3) commodities. The paper also found that endowment variables such as labour and capital stock significantly affects RSCA for more than 50% of the equations, giving support to Ricardian  and Heckscher-Ohlin theorem of comparative advantage.  Keywords: Revealed Comparative Advantage; Oil Price Shocks; International Trade JEL Classifications: C33; F11; N50

Description: This study examines the existence of environmental Kuznets Curve (EKC) hypothesis between economic growth and CO2 emission in Algeria for the period 1971-2009 using Autoregressive Distributed Lag (ARDL) cointegration framework. Data were retrieved from World Bank Development Indicators. Importantly, our findings reveal that EKC hypothesis does not exist. In addition, the long run models show that income and population appear to have significant impact on CO 2 emission especially from solid fuel consumption and electricity and heat production. However, only population is revealed to promote CO 2 from liquid fuel consumption. These findings suggest a dire need for Algeria to shift towards service intensive economy rather than resource intensive, and alternative renewable energy sources in order to mitigate environmental degradation as well as promote economic development. Keywords : Air Pollution; economic growth; environmental Kuznets curve hypothesis. JEL Classifications: O47; Q53; Q56

Description: Today the unprecedented increase in CO 2 emissions has become an important global issue because of the intensification in demand from the transport sector due to an upward surge in urbanisation and rapid economic growth. The demand for transport services is expected to rise further, causing the CO 2 emissions level to increase as well. In Malaysia, the transportation sector accounts for 28% of total CO 2 emissions, of which 85% comes from road transport. This has led to strong interest in how the CO 2 emissions in this sector can be reduced effectively. This study aimed to investigate factors that influence the CO 2 emissions. A multiple regression model was used based on fuel-based technology data for 1990 to 2013. Many factors influencing CO 2 emissions, i.e., fuel consumption, fuel efficiency, fuel price and distance travel, were examined for the road transport sector in Malaysia. The results demonstrated that fuel efficiency, fuel price and distance travel were the main factors influencing the CO 2 emissions growth. Some policy implications from the empirical results were proposed for CO 2 emissions reduction. Keywords: CO 2 emissions; energy consumption; road transportation; regression model; Malaysia. JEL Classifications: C13; Q48; N75; R41

Description: In conjunction with the recent alternative models, a wide literature has been established for volatility modeling in finance theory. In this study, we examine return volatility of Brent oil returns through GARCH, EGARCH, GJR-GARCH and MRS-GARCH models. As a preliminary test concerning the potential regimes, first, we use modified ICSS test in order to examine the existence of breaks in the variance of return series. All volatility models are formed under normal, GED and student- t distributions. According to the AIC and BIC values, MRS-GARCH model outperforms all other alternative models. Another interesting result is the failure of the models that formed under normal distribution. Keywords: Markov Regime Switching GARCH; Oil Volatility; Variance Breaks JEL Classifications: C14; C22; C58; G14

Description: We have total energy produced by a firm using a non-renewable resource and a perfect substitute backstop. The average cost of the backstop is significantly higher relative to the non-renewable resource initially; average backstop costs are modeled to fall with investments in knowledge. Investments in knowledge are thought to bring about more efficient techniques to use alternative energies (better technical know-how for wind, solar) reducing their average costs. The knowledge stock is modeled as an impure public good such that an individual firm only partially benefits from its own knowledge accumulation. We find a firm in equilibrium invests less in the backstop relative to the social planner and that the planner solution also leads to faster exhaustion of the depletable resource. Introducing ow pollution, we find the time of switch to the backstop in the planner solution depends on the relative magnitudes of the average pollution cost and the average cost of the backstop. An increase in the pollution cost implies slower extraction of the exhaustible resource and a later switch (compared to the case without pollution); however for a very high pollution cost, the extraction rate rises and switch to the backstop is made sooner leaving some of the exhaustible resource in the ground. We solve both the models explicitly and use sophisticated numerical techniques in Mathematica. Keywords: Exhaustible Resources; Backstop; Knowledge Stock; Investment; Pollution; Numerical Methods JEL Classifications : C61; O32; O33; Q32; Q42

Description: Energy availabilty is crucial for the economic growth of any nation in the world today. Access to clean, affordable and reliable energy are necessities in achieving a sustainable development in the modern world. Energy poverty in a country can be said to be a situation where its citizens lack electric power to meet even their own basic needs such as lighthing and cooking. Nigeria, as a country described as the “giant of Africa and the most populated black nation in the world still faces the crisis of energy poverty. Nigeria is blessed with an abundant energy resources of both fossil fuels and renewable energy, but the main challege is the country’s inability to adequately and efficiently utilize these energy resources. This lack of efficent energy utilization has led to the near depletion of the fossil fuel resources within the country’s boarder and the energy crisis afflicting Nigeria is expected to be on the rise if the government does not act immediately by the diversification of country’s energy sources and exploit the abundant natural renewable resources avaliable in the country. This paper reviews the standpoint of efficent energy management with strategic concentration on the demand side energy savings and renewable energy resource potential in Nigeria to ensure sustainable development. The energy situation in the country is reviewed with the consumption parttern of the various fossil fuel resources in the country. The paper also examined the various renewable energy potentials, locations and present ways in which they can be harnessed for useful and uninterrupted energy supply. Some effective strategies and energy policy are presented in order to overcome the energy poverty situation in Nigeria. Keywords: Sustainable energy development; Energy poverty; Renewable energy; Energy savings, Nigeria. JEL Classifications: Q2; Q3; Q4

Description: The aim of this study is to survey the empirical studies which interested in detecting the causal relationship between energy consumption and economic growth, and to provide some recommendations to policymakers for designing the environmental policies and policy implications of effective energy. Our review paper concentrates to make a survey depending on included variables in the studies, thus it has been classified into two groups; bivariate framework and multivariate framework. The results show that the multivariate studies support the feedback hypothesis more than the bivariate studies with (45.7%) and (29.5%) respectively. In contrast of that in neutrality hypothesis, the bivariate framework studies support it with (26.2%) which is more than that in multivariate framework (12.1%) only. In the other hand the results by considering the whole empirical studies in our survey support the hypotheses as the following; (34.3%), (24.0%), (19.7%) and (22.0%) for the feedback, growth, conservation and neutrality hypothesis respectively. Moreover we provide some suggestions for future studies; it should focuses more on new approaches consist the multivariate framework rather than by applying common methods with the same variables in bivariate framework only, which could be solved by adding unprecedented variables such as technology innovation, index investment and environmental quality with applying environmental Kuznets curve (EKC). In the analysis should considers the possibility of structural breaks, the coefficients signs, and distinguish between the short and long run causality relationship. And it should include two distinct groups of energy consumption; renewable and nonrenewable energy rather than aggregate or disaggregate energy consumption. Keywords: Economic growth; aggregate energy consumption; causality relationship. JEL Classifications: Q4; Q43

Description: The dominance of oil in the Nigeria’s external sector and as its major source of revenue is not in dispute. This therefore necessitates the need to probe the nexus and the magnitude of the effects of fluctuation in the exchange rate on oil price and on how it impacts the Nigeria’s economic performance. Against this background, this study evaluated the effects of exchange rate fluctuations on crude oil price as well as on economic performance, simultaneously. The Ordinary Least Square (OLS) and the Two Stage Least Squares (TSLS) estimation techniques were employed. The study found that real exchange rate has a positive effect (1.2 per cent) on the Nigeria’s economic performance. We also found that a one percentage increase in the price of oil would positively influence the economic performance of Nigeria by the magnitude of 4 per cent. The R 2 shows that 82 per cent deviation in the gross domestic product was captured by the explanatory variables whereas the J-statistics of the model is insignificant, thus, confirming the relevance and validity of the instruments used. Keywords: Exchange Rate; Oil Prices; Economic Performance JEL Classification:  E3; F41; F43

Description: This study examined the Granger causality of energy consumption, oil price and economic growth in Nigeria. Two sub-categories of energy (kerosene and electricity) were equally considered. The error correction model framework was used to test the granger causality of the variables. The results for the total energy showed bidirectional causality between energy consumption and economic growth. As regards electricity, bidirectional causality was found between electricity consumption and economic growth as well as between electricity consumption and electricity price. No causal relationship exists among kerosene consumption, kerosene price and economic growth. Based on our findings, we recommend that policies that promote energy consumption and economic growth be introduced. One way of achieving this is through the adoption of appropriate energy pricing framework that takes cognisance of both the present and the future generation. Keywords: Energy consumption; Economic Growth; Kerosene Consumption; Electricity Consumption. JEL Classifications : C22; Q43; Q48

Description: This article assesses various risks arising within the process of building, running and decommissioning of nuclear units with the Central and Eastern Europe (CEE) where nuclear power is still perceived as a reliable and widely utilized energy source. The region is specific for its relations with Russia which is a dominant provider of technologies and fuel thanks to former ties between the region and the Soviet Union. The debate on building new nuclear producing units with Russian companies as potential contractors is thus echoing old concerns about the rise of Russian influence and one-sided dependency. The main conclusions are twofold. First, financing is the key issue to be addressed in order to conduct a successful project with current electricity prices undermining any new project not only in the region but also in Europe as a whole. Second, precise formulation of project documentation is crucial to avoid hidden costs, delays and potential disputes with contractors. Keywords:   Power Generation; Nuclear Energy; Central and Eastern Europe; Russian Federation JEL Classifications: H76; Q38; Q40; Q41; Q49

Description: This paper aims to achieve two fundamental objectives. First, we examine whether the electric consumption of the GCC countries exhibit any form of non-linearity that is of economic interest. In this context, we use the BDS test in order to determine the absence or presence of linear or nonlinear dependence. The test results indicate that there is a substantial nonlinear dependence in all the series of the countries in the region. In the second objective, we investigate the asymmetric properties of the electric consumption of these countries. In particular, we explore two types of asymmetry: deepness and steepness. The test results indicate that there is a strong corroborative evidence of asymmetric deepness and steepness relative to trend in these countries’ electric consumption variable. Keywords: Electric Consumption; Business cycle Asymmetry; GCC Countries JEL Classifications:  E21; E32

Description: This paper provides empirical evidence of an environmental Kuznets curve ( EKC) hypothesis for Portugal by applying autoregressive distributed lag bounds testing approach from 1971 to 2008. In order to capture Portugal’s historical experience, demographic changes and international trade on carbon emissions, we augment the traditional income-emissions model with variables such as energy consumption, urbanization, and trade openness in time series framework. Empirical results confirm the evidence of EKC hypothesis in both the short-run and long-run. All variables carry the expected signs except trade openness. Despite the success of Portugal in containing CO 2 emissions so far, it is important to note that in recent years, carbon emissions have risen. In order to comply with the 1992 Kyoto Protocol on CO 2 emissions, there is need for policies that focus on the sectors responsible for CO 2 emissions. Keywords: Carbon dioxide emissions; Energy consumption; Environmental Kuznets Curve JEL Classifications : C32 ; O52 ; Q43 ; Q5

Description: The purpose of this paper is to study if there is a Granger causality relationship between the price of oil and the prices of the stocks that compose the Integrated Latin American Market (MILA) Index. Our analysis found that from the perspective of the efficient market hypothesis (EMH), there is no empirical evidence that there is a Granger causality relationship between the price of oil and other commodities and the stocks that compose the MILA Index.  Therefore, it is possible to conclude that based on the evidence, it is not possible to create an arbitrage strategy based on the price of oil and copper to achieve abnormal returns in the MILA Stock Market. In order to test for the Granger causality between the underlying variables, we used a leveraged bootstrap test developed by Hatemi-J (2012) . Keywords: Market efficiency; asymmetric Granger causality; asset-pricing models; MILA Index; oil prices. JEL Classifications: G14; G15

Description: Cointegration relationships among electricity, gas, oil and coal are explored using panel data models for both the industrial and household sectors in 22 countries in Europe between 1996 and 2013. A shorter period, to account for the allowances market creation in Europe is also considered through a dummy (2005-2013) to capture the absence and presence of the CO2 price effect respectively. Empirical findings reveal that electricity and fuel prices are non-stationary and cointegrated series. So, the current paper accounts for cross-section dependence when analyzing the electricity-fuel nexus. Results indicate that there exists a stronger long run equilibrium relationship between electricity prices and fuel prices in the industry sector, while both a short and long run equilibrium relationship in the household sector. These differences may be explained by the industry higher resilience in long run contracts within the energy sector and by the fact that households bear a larger share of the cost of taxes and levies. Keywords : Cointegration; Electricity and fuel markets; Industrial and Household sectors JEL Classifications : O52; Q02; Q50

Description: This study aims to evaluate whether energy savings from energy efficiency programs in Brazil affected the risks taken by energy companies during the period 2000–2013, based on the following research question: Can we assume that energy conservation programs affect return risks to electrical energy companies? The results obtained through risk assessment models, exponentially weighted moving averages, and the capital asset pricing model indicated that during periods of crisis, both volatility and required returns were higher, but during less difficult periods, risks taken were significantly reduced.  Further, as research contribution, this research suggests the elimination the affirmative hypothesis that a possible increase in energy efficiency affects the risks taken by electrical energy companies. Keywords : Capital Asset Pricing Model; PROCEL, Energy Conservation Programs. JEL Classifications: E30; G38; K23; M48; Q4

Description: Turkey is currently one of the fastest growing economies in the world with the largest increase in the energy demand among the OECD countries. Since the country has limited reserves for oil, natural gas and coal, this increase in energy demand is not able to be met through domestic energy production alone, which possess a threat on the country’s economic growth, national security and industrial well-being and therefore various regulations and policies are being developed to reduce the reliance on foreign energy sources. In this paper, the natural energy sources of Turkey are evaluated, current efforts to fully utilize these potential sources are examined and the governmental approaches and incentives to increase domestic production are studied in a systematic manner. The study concludes that even though tremendous efforts have been made to explore and efficiently utilize the domestic resources by the government through various legislations, guidelines and taxation; the domestic resources will not seem to be sufficient in the short run and energy imports will be necessary to meet the energy demand in the next decades. Keywords : Energy demand; natural resources; energy policies; Turkey JEL Classifications: O220; O250; Q280 

Description: This study analyzes the effect of oil price shocks on the economies of El Paso, Texas and Ciudad Juarez, Chihuahua, jointly referred to as the “Borderplex.”  It employs a measure of the net oil price increase developed by Hamilton (1996) in a manner similar to that applied by Sill (2007) to the United States national economy.  Impulse response functions are calculated to determine the impact of 10-percent oil price shocks on the Borderplex regional economy.  The asymmetrical relationship between oil prices and economic performance is also examined using a net oil price decrease variable.  Results found in this study are inconclusive.  Negative and statistically significant relationships for the net oil price increase are obtained in the El Paso real personal income, El Paso non-agricultural employment, Ciudad Juarez retail sales, and Ciudad Juarez formal sector employment equations.  Inconsistent results are reported for the El Paso retail sales equation, while there appears to be no relationship between net oil price increases and El Paso gross metropolitan product or between net oil price increases and El Paso median existing single family house prices. The results presented in this study do not find definitive evidence in support of an asymmetrical relationship between oil prices and metropolitan economic performance. Keywords: Oil Price Shocks; Borderplex Regional Economy; Econometrics JEL Classifications: Q43; M21; R15 

Description: It is now widely recognized that Turkey-Azerbaijan relations have always been strong and described with the phrase "one nation with two states”. This paper is concerned with economic and political nature of Turkey-Azerbaijan relations. Initially, the evolution of Turkish- Azerbaijani relations after the independence of Azerbaijan has been examined. This paper gives an overview of the impacts of Nagorno-Karabagh issue and efforts to normalize the relations between Turkey and Armenia on relations between Turkey and Azerbaijan. Energy has a special place in the relationship between the two countries. Azerbaijan’s economy, energy sectors of Azerbaijan and Turkey has been assessed. Moreover, this paper gives a comparative analysis on economic relationship between Turkey and Azerbaijan. This study finally discusses the main trends and contributions of energy projects on Turkey-Azerbaijan relations. Keywords: Turkey; Azerbaijan; Politics; Economy; Energy JEL Classifications: O57; Q41; Q43; Q48

Description: Energy and climate change policies are often strongly based on achieving energy efficiency targets. These policies are supposed to reduce energy consumption and consequently, associated pollutant emissions, but the Jevons paradox may pose a question mark on this assumption. Rebound effects produced by reduction in costs of energy services have not been generally taken into account in policy making (there is only one known exception). Although there is no scientific consensus about its magnitude, there is consensus about its existence and in acknowledging the harmful effects it has on achieving energy or climate targets. It is necessary to address the rebound effect through behavioral, legal and economic instruments. This paper analyzes the main available policies to minimize the rebound effect in households with special emphasis on economic instruments and, particularly, on energy taxation. Keywords: Rebound effect; Energy efficiency; Environmental taxation JEL Classifications: Q2; Q3; Q4; Q5

Description: Turkey has stipulated that renewable energy sources ( RES ) will have at least 30% share in electricity generation by 2023. To reach this target, a renewable energy promotion law ( Law No. 5346 ) was enacted in 2005 and later amended in 2011. Through Law No. 5346, Turkey has launched a feed-in tariff ( FIT ) for RES-based electricity with additional premium for the use of local equipment. The FIT is guaranteed for 10 years from the date of operation and valid only for RES power plants commissioned between the 18 th May, 2005 and the 31 th of December 2020. In addition, RES power plants with a capacity of up to 1 MW are exempted from licensing and establishing legal entities. There is an increasing demand to install unlicensed RES generators, mostly solar power plants, all over the country. At least one consumption unit must be associated with an unlicensed power plant. Excess generation from unlicensed RES power plants is automatically priced at the FIT for 10 years. Except for the FIT mechanism, unlicensed generators have no options to sell unconsumed electricity in the electricity market. The main difficulties lie in limited connection possibilities, the selection of plant locations, and coordination among relevant authorities. Moreover, an awareness campaign would help people to better understand the related regulation and applications. Keywords: Unlicensed generation; distributed generation; electricity market; Turkey JEL Classifications: L5; Q40; Q43; Q48; Q49

Description: This article investigates the current status of the association between carbon emissions releases, use of energy, openness of trade and overall output of Bangladesh from its independence to 2012. The research outcomes for Bangladesh show that a robust long-run association is present there along with short-run dynamic adjustment among those variables. The research indicates that environmental degradation in Bangladesh may increase because of high economic growth in future and therefore, policies to tackle environmental pollution are imperative where the use of both market and non-market based management tools is important. Finally, this study provides some future research directions which were beyond the scope of this research. Keywords: Environment; Environmental Economics; Air Pollution. JEL Classifications: Q5; P42.