Regulations in the Energy Industry : Financial, Economic and Legal Implications

Description

This book provides a broad overview of the financial, economic and legal implications of energy industry regulations in various countries. In light of significant changes around the globe, it analyses various institutions that are involved in regulative measures, and based on various country studies, it offers insights into how energy sector regulations differ across countries with different market structures and institutions. Covering major topics such as laws and regulations geared to market competition and sustainability and the impact of noncompliance to regulations, from the perspectives of financial markets, and financial risks, the book is divided into four parts: Part I Regulations: price and trade controls; Part II. Non-price & trade control regulations; Part III: Compliance with regulations; and Part IV: Market issues and regulation. It will appeal to scholar in economics, finance and related fields as well as to policymakers and practitioners in the energy industry.  This is the seventh volume in a series on energy organized by the Centre for Energy and Value Issues (CEVI).  The previous volumes in the series were: Financial Aspects in Energy (2011), Energy Economics and Financial Markets (2012), Perspectives on Energy Risk (2014), Energy Technology and Valuation Issues (2015), Energy and Finance (2016) and Energy Economy, Finance and Geostrategy (2018). Foreword Contents Introduction: Financial Implications of Regulations in the Energy Industry 1 Regulation and the Energy Industry 2 Financial Implications of Regulations in the Energy Industry: Issues Covered in This Book 2.1 Regulations: Price and Trade Controls 2.2 Other Regulations 2.3 Market Control 3 Conclusions Reference Environmental Regulatory Arbitrage by Business Groups in the Context of the European Union´s Emission Trading System (EU-ETS) 1 Introduction 2 Literature Review and Hypothesis Development 2.1 Literature on EU-ETS Effectiveness 2.2 The Regulatory Stringency Hypothesis 2.3 The Regulatory Arbitrage Hypotheses 3 Data, Variables, and Methodology 3.1 Sample Selection 3.2 EU-ETS Related Variables 3.3 Control Variables and Model Specification 4 Results 4.1 Univariate Comparison of Domestically and Foreign Owned Affiliates 4.2 Affiliates´ Emissions Depending on Parent Firm Nationality 4.3 Affiliates´ Emissions Depending on Parent Country Environmental Stringency 5 Conclusions Appendix 1 Variable Definitions Appendix 2 Heckman Procedure for Selection Bias References Measuring the Effects of Energy Efficiency Policies: Evidence from Turkish Manufacturing Industry 1 Introduction 2 Energy Efficiency 2.1 Definitions 2.2 Energy Management System 2.2.1 Measuring the Effects 2.2.2 Energy Efficiency Projects 2.2.3 Non-energy Benefits 2.3 ISO 50001: Energy Management Systems Standard 3 Some Facts on Energy in Turkey 4 An Empirical Analysis of Energy Efficiency in Turkish Manufacturing Industry 4.1 Methodology: Data Envelopment Analysis 4.2 Firm-Based Evaluations 4.3 Activity-Based Evaluations 4.4 Robustness of Activity-Based Evaluations 5 Conclusions References The Convergence of Electricity Prices for European Union Countries 1 Introduction 2 Econometric Methodology 2.1 Linear Unit Root Test 2.2 Nonlinear Unit Root Procedure 3 Data and Estimation Results 4 Results and Discussion References Blockchain as a Technology Backbone for an Open Energy Market 1 Introduction 2 What Is the Blockchain Technology? 3 Blockchain in the Energy Industry 3.1 Projects and Applications 3.1.1 Blockchain and Prosumers´ Access to the (Micro)grid 3.1.2 Cap and Trade 3.1.3 Electric Vehicle Charging 3.2 Empirical Evidence on Green ICOs 3.3 Types of Clean Energy-Related ICOs 3.4 Relative Performance of Clean ICOs 3.4.1 ICO Performance 3.4.2 ICO Attributes 3.5 Risks and Uncertainties Related to the Blockchain Technology 3.5.1 High Energy Demand 3.5.2 Scalability Issues 4 Conclusions Appendix References Geopolitics and Gas-Transit Security Through Pipelines 1 Introduction 2 Energy-Transit Security 3 Brief History of Oil and Gas Transit 4 World Natural Gas Geography 5 Pan-European Geo-Energy Space 6 Two Main Energy-Transit Countries 6.1 Ukraine 6.2 Turkey 7 Discussions and Conclusions References Tapping the Potential: Turkey and Renewable Energy Sources 1 Introduction 2 Literature Review 3 RES Generation, Potential, and Targets in Turkey 4 Analysis and Discussion: Facilitators, Barriers, Wind, and Solar 4.1 Summary of Measures Facilitating RES Development 4.2 Wind Energy Development 4.3 Barriers to RES Development 4.4 Solar Water Heater Development 5 Conclusions References The Financing Decision of Oil and Gas Companies: The Role of Country Level Shareholder Protection 1 Introduction 2 Literature Review and Hypothesis Development 2.1 Internal and External Investment Financing 2.2 Influence of Uncertainty on Investments 2.3 Capital Structure Theories and Hypotheses 2.4 Shareholder Protection Level 3 Data Description and Methodology 3.1 Data Sample Description 3.2 Estimating Targeted Leverage 3.3 Evidence on Adjustment Toward Estimated Target Debt Ratios 3.4 A Model for Testing Pecking Order, Trade-off, and Market Timing 3.5 Extending a Model for Testing of Shareholder Protection Hypothesis 4 Results 4.1 Determinants of Financing Choices 4.2 The Role of Shareholder Protection 5 Conclusions and Limitations References Attitudes of SMEs Toward the Elements of Eco-efficiency: The Turkish Case 1 Introduction 2 Literature Review 2.1 SMEs and Eco-efficiency 2.2 Turkish SMEs and Eco-efficiency 3 The Legal and Institutional Background for On-Site Electricity Generation from Renewables and Energy Efficiency Investments ... 3.1 Distributed Generation (On-Site Electricity Generation from Renewables) 3.1.1 Case Study: A Wind Power Plant in the Backyard of a Factory 3.2 Energy Efficiency Policies in Turkey 4 Data and Methodology 4.1 Sample Selection 4.2 Descriptive Analysis 4.2.1 Resource Efficiency 4.2.2 On-Site Electricity Generation from Renewable Resources 4.2.3 Green Production 5 Conclusion References Volatility Spillovers Between Oil and Stock Market Returns in G7 Countries: A VAR-DCC-GARCH Model 1 Introduction 2 Literature Review 3 Econometric Methodology 4 Data and Preliminary Analysis 5 Results 6 Optimal Portfolio and Hedging Ratios 7 Conclusion References Corporate Cash Holdings in the Oil and Gas Industry: The Role of Energy Directives 1 Introduction 2 Developments in the Energy Industry and Cash Holdings 3 Data and Methodology 3.1 Overview of Data 3.2 Model Formulation 4 Multivariate Results 4.1 Determinants of Cash Holdings 4.2 Adjustment Toward Target Cash Holdings 4.3 Adjustment Toward Target Cash Holdings: The Role of Energy Directives 4.4 Additional Tests 5 Conclusion References The Determinants of Systematic Risk of Renewable Energy Firms 1 Introduction 2 Literature Review 2.1 Investment Decision-Making and the Cost of Equity Capital 2.2 Limitations to the Practitioner´s Method in Renewable Energy Valuation 2.3 Alternative Solution Based on the Evidence from the Technology Sector 2.4 Determinants of Renewable Energy Systematic Risk 2.4.1 A Global Factor Affecting the Systematic Risk of Renewable Energy Firms 2.4.2 Country-Specific Factors Affecting the Systematic Risk of RE Firms Energy Import Dependency Technological Innovation Political Risk, Environmental Policy Stringency, and Environmental Policy Stability 2.5 Research Framework 3 Methodology and Data 3.1 Methodology 3.2 Data 3.3 A Global Factor 3.4 Country Factors 3.4.1 Energy Imports, Net (% of Energy Use) 3.4.2 Technology 3.4.3 Political Risk 3.4.4 Environmental Policy Stringency 3.4.5 Environmental Policy Stability 4 Results 5 Discussion and Conclusion References Optimizing Resource Usage in an Unobtrusive Way Through Smart Aggregation: The Case of Electric Vehicle Charging in Amsterdam 1 Introduction 2 Background and Relevant Literature 3 The Modelling of an EV User Charging Strategy 4 The Optimization Model 4.1 Decision Variables 4.2 Objective Function 4.3 Restrictions 5 Empirical Results 6 Discussion, Conclusions, and Implications References