The influence of the investment factor on the transformation of the global energy market

Rudkovskyy, Serhii

doi:10.15587/2706-5448.2020.210943

Cited by 3 publications

(4 citation statements)

References 8 publications

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“…When analyzing M&A motives of an external nature, it should be remembered that the energy market is created by both domestic, macro-regional energy systems, industry markets, and the actions of global players both in terms of supply and demand [38]. Therefore, on the list of external motives of M&A processes, determining the "buy" answer to a typical question about the ways of company development, "Make or buy?…”

Section: Review Of Selected Research Results On the Motives Of Mergers And Acquisitions In The Energy Sectormentioning

confidence: 99%

The Dominant Motives of Mergers and Acquisitions in the Energy Sector in Western Europe from the Perspective of Green Economy

Niemczyk

Sus²,

Borowski³

et al. 2022

Energies

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The aim of the research, the results of which are used in this publication, was to identify the motives for mergers and acquisitions in the energy sector after the introduction of green economy elements in Western Europe. The mentioned region is the group of countries where changes related to the move to green energy are most visible (in addition to some countries from other regions, such as Singapore, New Zealand, or countries of the Arabian Peninsula). The research assumed the hypothesis that over the years since the Paris Conference the themes of mergers and acquisitions have changed from motives close to the views related to energy generation in traditional systems (black energy in large, monopolistic systems) to motives close to green energy (the research hypothesis). This was confirmed in the research, as business risk diversification (defined as diversification of the power sources from black to green) was the most popular M&A motive. In addition to emphasizing the direction of changes in the M&A motives, the authors of this study decided to check whether since 2015 (when the Paris Conference was organized) the motives behind the M&A transactions conducted by companies operating in the electrical energy generation sector have changed, making their motives close to the green energy dominant in Western Europe. Apart from verification of the abovementioned hypothesis, the aim of the research was to check whether there are any characteristic directions of changes in M&A motives across companies from particular Western European countries. The motives are changing from positional approaches to motives closer to resource approaches (green economy). The research used a critical analysis of the literature on the subject, a study that used desk research based on openly available sources and our own analytical tool developed for the needs of this analysis, which is the transformation of the concept of analysis of the M&A motives proposed in K. Borowski’s research: “The strategic development of the technology companies. The mergers and acquisitions perspective”.

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Section: Review Of Selected Research Results On the Motives Of Mergers And Acquisitions In The Energy Sectormentioning

confidence: 99%

The Dominant Motives of Mergers and Acquisitions in the Energy Sector in Western Europe from the Perspective of Green Economy

Niemczyk

Sus²,

Borowski³

et al. 2022

Energies

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“…This reflects various regulatory developments, advancing environmental and reporting requirements, digitalization, and the emergence of new risks in the corporate environment. Several studies [49,50] support that M&A in the energy industry reflect changes in the environment, and that companies often pursue M&A strategy in order to cope with increasing pressure towards green transformation and sustainable development [51][52][53]. Therefore, these factors have influenced incorporation of sustainability consideration into M&A processes.…”

Section: Discussionmentioning

confidence: 99%

“…However, we believe that studies reflecting environmental concerns and energy economy are scarce. [49] reminds us that global energy markets, global energy supply and demand are construed not only by domestic, macro-regional energy systems and industry markets, but also by the actions of global players (e.g., companies, NGO's, governmental institutions, etc.). In line with this, ref.…”

Section: Xie Et Al [35]mentioning

confidence: 99%

Sustainability Framework for Assessment of Mergers and Acquisitions in Energy Sector

Andriuškevičius

Štreimikienė

2022

Energies

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According to Thomson Reuters DataStream database, 22,458 merger and acquisition (M&A) transactions with a deal value exceeding 7016 billion Euros have occurred in the energy worldwide sector during 1995–2020. International M&A enable promotion of sustainable competitive advantages, accelerates industry developments and helps to promote sustainable social and economic development. Our research aims to systemize empirical studies, which would enable assessment of the relationship between M&A transactions and the principles of sustainable development in the energy sector. To do so, SALSA (search, appraisal, synthesis and analysis) methodology with additional snowballing technique (chain-referral sampling) is conducted. The current research contributes to existing knowledge by providing an extensive systematic literature review of the academic publications on sustainable development and M&A deals. This paper may be insightful for practitioners and scholars because it highlights the most relevant lines of research on the topic and provides a synthesis of the interdisciplinary literature. Practical contributions of this paper come from its synthesis of interconnections between sustainable development and M&A deals in the energy sector, because sustainability matters may be reflected during different M&A processes: target selection, deal due diligence, deal valuation and post-acquisition integration.

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“…Using renewable energy in the US reduces carbon footprints but has a detrimental effect on environmental deterioration (Usman et al 2021). International investment in renewable energy is constrained by the requirement for increased investment in renewable energy infrastructure and the substantial expenses associated with connecting to power grids (Ahmed et al 2021;Rudkovskyy 2020). Romanian electricity systems have seen a significant rise in renewable energy-based generation capacity, resulting in lower usage of renewable energy (Jijie et al 2021;Ciupageanu et al 2021).…”

Section: Sectoral Economy and Renewable Energymentioning

confidence: 99%

Sustainable Financing for Renewable Energy: Examining the Impact of Sectoral Economy on Renewable Energy Consumption

Getachew,

Lakner,

Desalegn

et al. 2024

Economies

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This study examines the effect of international financial flows, including investments and development assistance, on the expansion of renewable energy technologies. It also seeks to investigate the impact of the sectoral economy on the proportion of renewable energy consumption in Ethiopia. This study used an explanatory research design and a quantitative research approach. An autoregressive distributed lag model was applied to explore the long and short-term relationship among variables. A time series of data aggregated and disaggregated ranging from 2000 to 2022 was used. According to this study, sustainable finance programs are essential for advancing and aiding renewable energy projects in the long and short term. Ethiopia’s use of renewable energy will increase as sustainable finance rises. The main economic sectors determining Ethiopia’s consumption of renewable energy in the long and short term include the manufacturing, mining and service industries. This study’s findings imply that policies focusing on providing continuous financial support and fostering international cooperation to promote the development of the manufacturing sector are needed. This could include incentives for adopting renewable energy technologies and investing in renewable energy infrastructure. On the other hand, since the service and mining industries negatively impact renewable energy use, there is a need to diversify renewable energy sources beyond these sectors. This could involve promoting renewable energy projects in other sectors, such as manufacturing, agriculture, construction and trade. Based on the findings of this study, it is suggested that policymakers carefully consider the consequences within each economic sector when formulating decisions related to renewable energy. This study is novel in presenting empirical evidence linking renewable energy use to long- and short-term economic growth.

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The influence of the investment factor on the transformation of the global energy market

Cited by 3 publications

References 8 publications

The Dominant Motives of Mergers and Acquisitions in the Energy Sector in Western Europe from the Perspective of Green Economy

The Dominant Motives of Mergers and Acquisitions in the Energy Sector in Western Europe from the Perspective of Green Economy

Sustainability Framework for Assessment of Mergers and Acquisitions in Energy Sector

Sustainable Financing for Renewable Energy: Examining the Impact of Sectoral Economy on Renewable Energy Consumption

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