On the pursuit of energy security: evidence from the nexus between clean energy stock price and energy security elements

Hassan, Aminu; Ibrahim, Masud; Bala, Ahmed Jinjiri

doi:10.1080/14786451.2021.1986043

Cited by 9 publications

(9 citation statements)

References 63 publications

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“…The above findings are not always confirmed by other researchers. Hassan et al (2021) conclude that a low-carbon energy transition can be conducive to maintaining or improving energy security, provided that it is accompanied by energy efficiency enhancements associated with the use of modern RES technologies already mentioned.…”

Section: Energy Policy Determinants and Energy Securitymentioning

confidence: 88%

Assessing the energy security of European countries in the resource and economic context

Jonek-Kowalska

2022

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Research background: In recent years, much attention in the literature has been paid to the economic and environmental conditions of energy development as a key sector for the development of national economies. The issue of availability of individual energy resources and related energy security is receding into the background, most often due to the strong globalization of economies and the associated assumption of free international flow of goods and services, and thus practically unlimited possibilities of buying on the international commodity markets and energy exchanges. Nevertheless, the importance of energy security increases significantly in crisis situations. Purpose of the article: Bearing in mind the circumstances indicated above, the main objective of this article is to assess the energy security of European countries carried out in the context of resource and economic conditions. Methods: The article proposes its own methodological approach to the assessment of energy security based on the analysis of the energy mixes of 32 European countries and the availability of their own internal energy sources. In the process of classifying the studied economies into homogeneous groups in terms of resource and economic determinants (GDP per capita), principal component analysis was used. Findings & value added: The theoretical and methodological added value of the article results from the development of the author's approach to the assessment of energy security using individual and aggregated energy sufficiency index. Empirical added value is related to the results of energy security assessment in European countries, which can be used in shaping energy policies. Therefore, most of the 32 European countries assessed have a low level of energy security, which is due to the dominant use of non-renewable energy resources in their energy mixes. Countries with a high level of energy security have their own non-renewable resources or use alternative energy carriers in the form of renewable sources, hydropower or nuclear energy.

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Section: Energy Policy Determinants and Energy Securitymentioning

confidence: 88%

Assessing the energy security of European countries in the resource and economic context

Jonek-Kowalska

2022

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“…Recent studies have begun to establish an interesting link between the pursuit of energy security and energy stock performance (Hassan et al , 2022; Iyke et al , 2021). The current study contributes to this emerging research area which is directly connected to the United Nations (UN) sustainable development goals (SDGs) #7, affordable and clean energy and #13, climate action (Azmat et al , 2022; Ordonez-Ponce, 2021).…”

Section: Introductionmentioning

confidence: 99%

“…Clean energy stocks’ prices have experienced turbulent trends over the years reflecting varied, and sometimes conflicting, strategies used by nations to pursue energy security objectives (Kumar et al , 2012; Hassan et al , 2022). Consistent with SDGs #7 and #13, pursuit of energy security is planned and implemented in support of promoting clean energy sources.…”

Section: Introductionmentioning

confidence: 99%

“…UK Government’s recent approval to increase the generation of energy from fossil fuel sources, particularly oil and gas, is a case in point. Similarly, carbon transition agenda is negated when net-energy-exporting countries, for example, Organisation of the Petroleum Exporting Countries members formulate energy policies aimed at promoting hydrocarbon sources (Hassan et al , 2022). It may be argued that the ongoing backsliding to the use of fossil energy sources the world is witnessing is quite ill-fated to the efforts being made to attain net zero.…”

Section: Introductionmentioning

confidence: 99%

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External energy security elements and the riskiness of clean energy stocks: a volatility analysis

Hassan¹

2023

SAMPJ

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Purpose Clean energy stocks are exhibiting signs of increasing volatility reflecting the varied and conflicting strategies employed by nations to pursue energy security objectives. In this regard, this paper aims to examine the response of NASDAQ clean energy stock returns volatility to the influences of external energy security elements including oil price, natural gas price, coal price, carbon price and green information technology stock price. Design/methodology/approach The paper uses symmetric and asymmetric generalised autoregressive conditional heteroskedasticity models (GARCH and TGARCH, respectively), which incorporate external energy security elements as exogenous variables, to estimate volatility models for clean energy stock returns. Findings Although, prices of oil, coal and natural gas are negatively associated with NASDAQ clean energy returns volatility, only the effect of natural gas price is significant. While carbon price affects NASDAQ clean energy returns volatility positively, green information technology price affects the volatility negatively. These results are robust to exponential GARCH and lead-and-lag robust ordinary least-squares as alternative estimation methods. Research limitations/implications The study lumps the effects of all other external and internal factors, including internal energy security elements, in the autoregressive conditional heteroscedasticity (ARCH) term to predict NASDAQ clean energy returns conditional variance. GARCH method does not disentangle individual roles of the factors captured in the ARCH term in predicting volatility. Practical implications Results documented imply that natural gas appears a closer substitute for renewable energy sources than crude oil and coal, such that its price rise is perceived as good news in the NASDAQ clean energy financial market, while a fall is considered bad news. Furthermore, both an increase in carbon price and a decrease in green information technology stock performance are perceived as negative shocks. Social implications In assessing risks associated with clean energy stocks, investors and fund managers should carefully consider the effects of external energy security elements. Originality/value To the best of the author’s knowledge, the paper is the first to identify external energy security elements and examine their effects on clean energy stock volatility.

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“…According to our financial depth measurement, financial institutions may have mitigated the influence of oil price volatility on both growth and volatility of production among oil producers. This affects not just oil producers but also the world's energy supply (Hassan et al, 2021).…”

Section: Introductionmentioning

confidence: 99%

Role of oil price volatility, energy efficiency, and financial stability on sustainable energy production

Ouyang

Shi

et al. 2022

Front. Environ. Sci.

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In the COVID-19 crisis, many economies suffered from sustainable energy production. The emergence of the COVID-19 crises, extreme volatility in oil prices, limited energy efficiency in energy systems, and weak form of financial stability were the key reasons for it. However, considering these issues, a recent study aims to analyze them. ASEAN countries’ energy efficiency and crude oil price volatility are examined as a solution to how financial conditions might be utilized to handle energy efficiency issues and crude oil price volatility. Extending it, the study aims to identify the influence of financial stability on crude oil price volatility and energy efficiency issues. To do this, GMM is used. According to the study’s findings, environmental mitigation was determined to be important at 18%, and financial stability and carbon risk significant at 21%. Global warming concerns have been raised due to the ASEAN nations’ 19.5% link between financial stability and emissions drift. A country’s financial stability is necessary for implementing green economic recovery strategies, among the most widely accepted measures to reduce energy efficiency and guarantee long-term financial potential on the national scale. The study on green economic growth also provides the associated stakeholders with sensible policy consequences on this importance.

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On the pursuit of energy security: evidence from the nexus between clean energy stock price and energy security elements

Cited by 9 publications

References 63 publications

Assessing the energy security of European countries in the resource and economic context

Assessing the energy security of European countries in the resource and economic context

External energy security elements and the riskiness of clean energy stocks: a volatility analysis

Role of oil price volatility, energy efficiency, and financial stability on sustainable energy production

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