International Journal of Global Energy Issues (5 papers in press)
Investigating the Performance of Ogata-Banks One-Dimensional Dispersion Equation in Oil Contamination Dispersion in Bentonite Soil
by Arashk Sabzipour Hafshejani, Alborz Hajiannia, Saeid Eslamian
Abstract: In recent years, the soil and its surrounding environment have undergone and faced irrecoverable changes and contaminations due to human activities. From among contaminating sources, hydrocarbon compounds are very important because they easily permeate into soil and aquifers due to storage or leakage (when transferred). Investigating contamination transfer peculiarities is, in fact, a vital and basic issue in the environmental studies because of their high potential of permeation into soil and aquifers. In the present research, effort has been made to introduce the mechanism of contaminations dispersion and the basic equation in the related theory while applying boundary conditions, and extending the equation to study one- dimensional dispersion. Next, the results of one-dimensional dispersion in Bentonite with and without surface absorption in time intervals of 15, 30, and 90 days from the beginning of dispersion have been compared using the C-Tran Software. Results of this research study have revealed that the oil contamination density (concentration) variations along the soil column experience a decreasing trend; under the conditions of one- dimensional dispersion, the reduction rate is nearly constant 90 days after the commencement of the dispersion process.
Keywords: Hydrocarbon Compounds; Contamination Transfer; Mechanism of Contaminations’ Dispersion; One- Dimensional Dispersion; Bentonite; C-Tran.
A Study of Causal Dynamics in Crude Oil Prices in India
by Nidhi Choudhary, Girish Nair, Harsh Purohit
Abstract: The existing literature indicates that there have been numerous studies which have been done on causal dynamics of crude oil prices in India. However, these studies have failed to take into consideration the structural break in the statistics or the property of non-linearity. The presented study is an important step in this direction. It seeks to bridge this research gap.
Keywords: Crude Oil; Structural Break; Non Linear Data.
Special Issue on: Quantitative Energy Finance Applied to Environmental and Climate Problems
Fuel Taxes and Consumer Behaviour: A Markov-Switching Approach.
by Simon Porcher, Thomas Porcher
Abstract: Fuel taxes can be employed to correct externalities associated with automobile use and raise government revenue. The general understanding of the efficacy of existing taxes is largely based on empirical analyses of consumer responses to fuel price changes. In this paper, we directly examine how fuel taxes, as distinct from tax-exclusive fuel prices, affect fuel demand. To do so, we use a Markov-switching approach on monthly observations of French fuel prices from 1983 to 2013. Our analysis reveals that consumers respond significantly faster to increases in fuels taxes than to increases in tax-exclusive fuel prices. This result raises questions about our understanding of the efficacy of existing fuel taxes and of the optimal tax to achieve the various goals for which they are implemented.
Keywords: Energy; Fuel; Fiscal Policies; Consumer Behavior.
Oil Price Shocks and OECD Equity Markets: Distinguishing between Supply and Demand Effects
by Abderrazak Dhaoui, Khaled Guesmi, Youssef Saadi, Saad Bourouis
Abstract: With the recent changes in international financial markets, investors and policymakers are paying special attention to the relationship between oil price shocks and equity markets. This paper investigates how oil supply and oil demand shocks interact with OECD countries and macroeconomic variables within a cointegration vector error correction framework, which provides extreme flexibility with a parsimonious specification. By defining oil supply and oil demand shocks as endogenous variables, our proposed model allows us to gauge the shock transmission among the system variables through time and investigate the direct and indirect connections between oil price shocks and stock returns. We are also able to observe the long-run relationship between real stock prices and real oil prices measured by world and local prices. Our empirical findings show that the impact of oil price shocks substantially differs among the countries and that the significance of the results differs among the oil price specifications (real national oil price, world oil price, supply shocks and demand shocks).
Keywords: Oil price; Stock market return; Oil supply shocks; Oil demand shocks.
Investigating the price linkage between the Asian LNG spot and East Asian LNG prices and its implications
by Jeremia Dwi Martono, Kentaka Aruga
Abstract: This study investigates the price linkages among the Asian LNG spot and East Asian LNG prices to examine the existence of a long run relationship among the spot, Japanese, South Korean, Taiwanese, and Chinese LNG prices using cointegration analysis over the time period between 2009 and 2014. The results show that the Asian LNG spot price did not have a price linkage with both monthly averages of Japanese and Taiwanese LNG prices. The analyses also indicated that the South Korean LNG market moved together with the Asian LNG spot market. Lastly, the study discovered that the Chinese LNG market was somewhat influenced by the dynamics of the Asian LNG spot market. The findings corroborate the International Energy Agencys views on the importance of creating a natural gas trading hub in Asia that reflects the dynamics of the gas market in the Asia Pacific Basin and making the Asian gas market to become more uniform.
Keywords: Price Linkage; Asian LNG spot prices; LNG Spot and Short-term cargoes; Long-term contracts; Spot prices.