International Journal of Global Energy Issues (10 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.
Performance Evaluation of state owned Thermal Power Plants in Northern India using DEA
by Rohit Chandel, Harwinder Singh, Raman Kumar
Abstract: Electricity generation and supply plays a pivotal role in the commercialization of any country. In India, a rapid increase in electricity demand has been registered over the past few years with the sudden expansion of the industrial sector and economic growth. However, electricity sector could not able to bridge the space between power supply and demand. The objective of this paper is to evaluate the comparative interpretation of state-owned thermal power plants in Punjab and Haryana for the period of 2009-2014 and to set benchmarks for these by identifying the reasons for inefficiency and means of improvement. The present work describes the case study conducted using Charnes, Cooper and Rhodes (CCR) and Banker, Charnes and Cooper (BCC) model of data envelopment analysis (DEA) on secondary data of thermal power plants of Punjab and Haryana from 2009-2014. The exercise identified the relative efficiency trends of power plants fluctuating between 68.55 to 100 percent for BCC model while 36.84 to 100 percent for CCR model. The outcomes demonstrate a significant level of association between two models with Spearman rank correlation coefficient value as 0.88. The present work outlines the use of DEA for efficiency assessment of power plants and enables the readers to take necessary steps as a managerial perspective for productive improvement.
Keywords: Data Envelopment Analysis (DEA); Thermal power plant (TPP); Scale Efficiency; BCC and CCR Efficiency.
On the Economic Determinants of Biofuel Consumption: An Empirical Analysis for OECD Countries
by Mohamed Amine Boutabba, Najid Ahmad
Abstract: This paper explores the determinants of biofuel energy consumption for 12 OECD countries over the period 2002-2012. While a growing literature has examined the determinants of aggregate renewable energy consumption, studies on the drivers of disaggregated renewable energy consumption are scarce. Thus, this study fills the gap by focusing on biofuel energy consumption for OECD countries. Results reveals that biofuel energy consumption depends on real income, CO2 emissions, oil prices and biofuel prices, however, impact of income and CO2 emissions is more pronounced than that of biofuel and oil prices. Moreover, results depict that carbon emissions affect is negative on biofuel consumption and granger causes without feedback, suggesting that biofuels are not able to mitigate carbon emissions. Based on results, it is suggested to stimulate the development and deployment of advanced biofuels.
Keywords: Biofuel consumption; income; CO2; oil prices; biofuel prices; panel cointegration.
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.
Understanding Volatility and Leverage Effects in bunker markets
by Ishita Ranjan, T. Bangar Raju, R. Jayaraj, Krishnendu Dutta
Abstract: This research paper primarily focuses on analyzing the volatility and to study the leverage effect in the bunker prices specifically in IFO 380 AND IFO 180. To achieve this objective the research has used econometric model to study volatility known as Exponential General Autoregressive Conditional heteroskedasticity (E- GARCH). The period chosen to analyze this data was from January 2000 to October 2015. The second objective in the research deals with investigating the impact or causal relationship of IFO 380 bunker grade on bunker grade 180 and vice- versa. To achieve this Bivariate and E-GARCH analysis was done. The motivation behind this research was to study the leverage effect present in E- GARCH and based on results analyze where to risk mitigating strategies known as hedging strategies. Also, this research included aspect of serial correlation seen through Lagrange Multiplier (LM) tests and heteroskedastic problems in the Bunker price data which affects the results. The literature showed different research which dealt with volatility and GARCH models but with tabulation of all the literature a common research gap was found that there are limited studies on Bunker prices especially dealing with IFO 380 and IFO 180 using E-GARCH and Bivariate analysis. The analysis exhibited the model to be highly significant at 1% level of significance. The IFO 380 and IFO 180 were observed to have short and long run shocks and additionally a positive leverage effect was seen in IFO 180. Also, strong and positive impacts were observed between IFO 380 and IFO 180 prices. Based on these results it was recommended to the maritime industries that studying different energy derivatives (like the futures and options and collar strategies) in this case of volatility is important. However, there are short and long run shocks persistent in both the bunker specifications, thus hedging strategies are required for both the bunker grades.
Keywords: Bunker prices; Bunker grades IFO 380 & IFO 180; E-GARCH; bivariate analysis; leverage effect; hedging strategies; Lagrange multiple tests and heteroskedasticity tests.
Thermal Energy Storage using Phase change materials - A way forward
by Jayantilal Hadiya, Ajit Kumar N. Shukla
Abstract: The phase change material (PCM) stores thermal energy in form of latent heat during phase change process. This is one of the way to store available energy to use later for application during off-sunshine hours. This paper reviewed the recent investigation in the area of PCM as thermal energy storage (TES) and a way forward. This review summarizes the previous research works based on the type of PCMs and method of work. A radar map, mind map, comparison charts, etc. are developed for energy storage technologies and different PCMs. The geometry of PCM container of TES is first introduced and followed by the types of PCM used for TES. The most of the recent work such as paraffin, fatty acids, hydrates and metallic as PCM for TES are discussed. In the subsequent part of the paper, the recent developments of eutectic mixture of PCMs and metallic PCMs for TES are also reviewed as way forward reducing the Global Worming Potential building a holistic picture.
Keywords: Thermal energy storage; Phase change material; Paraffin; Fatty acids; Hydrates; Eutectics PCMs.
Oil Price Shocks and OECD Equity Markets: Distinguishing between Supply and Demand Effects
by Abderrazak Dhaoui, Khaled Guesmi, Youssef Saidi, 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.
Optimal management of an oil exploitation.
by S. Goutte, I. Kharroubi, Thomas Lim
Abstract: The aim of this paper is to deal with the optimal choice between extraction and storage of crude oil during time under a large panel of constraints for a fixed maturity T. We consider a manager that owns an oil field from which he can extract oil and decide to sell or to store it. This operational strategy has to be done in continuous time and has to satisfy physical, operational and financial constraints such as: storage capacity, crude oil spot price volatility, amount quantity available for possible extraction or the maximum amount which could be invested at time t for the extraction choice.rnWe solve the optimization problem of the manager's profit under this large panel of constraints and provide an optimal strategy. We then deal with different numerical scenario cases to check the robustness and the corresponding optimal strategies given by our model.
Keywords: Optimal Strategy; Oil Extraction; Oil Storage; Extraction choice.