“…In China, fluctuations on oil prices also influence the energy structure. Considering the importance of oil prices' fluctuations, options could be used to reduce the volatility of it and to quantify the benefit of using an active strategic reverse for volatility's mitigation [70].…”
Based on the global need to reduce the primary and final energy consumption, as part of the climate change mitigation strategy, the present study aims at determining the influence of different economic, social and environmental factors on the two types of consumption while emphasizing the importance of this topic for the research area. The novelty of the study resides in the factors considered in the panel analysis as well as in the combination of the analysis methods: the panel data analysis and the bibliometric analysis. The main results show that factors such as greenhouse gas emissions, gross domestic product, population and labour growth have a positive relationship with both primary and final energy consumption, which means an increase of energy consumption. Meanwhile, factors such as feminine population increase, healthcare expenditures or energy taxes have a negative relationship, which determine a reduction of energy consumption. The results should be of interest to the authorities in designing new energy reduction policies for contributing to sustainable development goals, as well as to the researchers.
“…In China, fluctuations on oil prices also influence the energy structure. Considering the importance of oil prices' fluctuations, options could be used to reduce the volatility of it and to quantify the benefit of using an active strategic reverse for volatility's mitigation [70].…”
Based on the global need to reduce the primary and final energy consumption, as part of the climate change mitigation strategy, the present study aims at determining the influence of different economic, social and environmental factors on the two types of consumption while emphasizing the importance of this topic for the research area. The novelty of the study resides in the factors considered in the panel analysis as well as in the combination of the analysis methods: the panel data analysis and the bibliometric analysis. The main results show that factors such as greenhouse gas emissions, gross domestic product, population and labour growth have a positive relationship with both primary and final energy consumption, which means an increase of energy consumption. Meanwhile, factors such as feminine population increase, healthcare expenditures or energy taxes have a negative relationship, which determine a reduction of energy consumption. The results should be of interest to the authorities in designing new energy reduction policies for contributing to sustainable development goals, as well as to the researchers.
“…Benefits of risk reduction versus management and investment costs of the US Strategic Reserve on an annual basis. Source: Haar & Haar ().…”
Section: Strategic Reserves As Market Stabilisersmentioning
confidence: 99%
“…In a recent jointly written article, I seek to overcome this key obstacle by extracting the information found in traded option markets (Haar & Haar, 2019). We calculate the probability of disruption into the measurement of energy security, deriving probabilities from regularly traded option prices (Jackwerth & Rubenstein, 1996;Jackwerth, 2000).…”
Section: The Probability Of Supply Disruptionmentioning
Involvement by government in the energy sector has historically been extensive. Generally, however, regulation and direct ownership have involved secondary sectors such as electricity generation and transport on the grounds that these are natural monopolies exhibiting increasing returns to scale. With some exceptions, primary energy production has been left in private hands. But security of energy supply, particularly of petroleum, has been held to justify investment by governments in maintaining strategic reserves and other initiatives. This article argues, however, that petroleum markets are resilient and that the probability of disruptions is slight. Markets can be trusted to satisfy demand without shortages, at affordable prices. In light of structural changes and innovations in petroleum markets, unless the large strategic reserves held by almost all developed countries are actively used to reduce market volatility as a form of public good, maintaining them is difficult to justify.
“…The price of an option at maturity is the same as the expected value of the reward terminal, which means that there is no arbitrage and risk neutrality [20]. As shown in (5) shows the price for Call option and the (6) shows the price for Put options.…”
Section: Figure 2 Colcap Stock Index Behaviormentioning
<p>This paper presents two hedging strategies with financial options to mitigate the market risk associated with the future purchase of investment portfolios that exhibit the same behavior as Colombia's COLCAP stock index. The first strategy consists in the purchase of a Call plain vanilla option and the second strategy in the purchase of a Call option and the sale of a Call option. The second strategy corresponds to a portfolio of options called Bull Call Spread. To determine the benefits of hedging and the best strategy, the Geometric Brownian Motion and Monte Carlo simulation is used. The results show that the two hedging strategies manage to mitigate market risk and the best strategy is the first one despite the fact that the Bull Call Spread strategy is lower cost.</p>
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