• Energy Research

This paper proposes methodological approaches to assessing the impact of renewable energy and energy efficiency development on emerging economies’ energy security. It is suggested to supplement the current methodology for assessing energy security with the decoupling index of the renewable energy financial burden on the state budget, the energy efficiency decoupling index, the households’ energy poverty indicator, the index of capacity development for balancing electricity generation volumes, and the energy fluctuations indicator. These indices provide a comprehensive assessment of energy security under the latest challenges. Thus, the COVID-19 pandemic in the Ukrainian energy sector led to the “green and coal paradox”, when the government decided to keep green electricity generation but limit nuclear generation. It required increased flexible capacities (thermal generation) and led to a rise in electricity prices and environmental pollution. Forecasting energy fluctuations with Butterworth filters allows minimizing the risks of maximum peak loads on the grid and timely prevention of emergencies. The energy fluctuations within the 20% range guarantee energy security and optimal energy companies’ operation. It is proposed to smooth out energy consumption fluctuations through green energy development, smart grids formation, energy efficiency improvements, and energy capacities balancing to ensure energy and economic sustainability.

Recent research shows increasing efforts to unfold the potential of Cultural and Creative Industries (CCIs) for regions in order to pursue new sources of innovation, competitive edge and to manifest sustainable and inclusive growth paths driven by creativity. Due to its strong commitments to the Sustainable Development Goals (SDGs) of the United Nations, on the global level, the Baltic Sea Region (BSR) has become a role model in sustainable development. Yet, individual BSR countries face challenges in the implementation of those goals. In this light, by building on the intermediate results (2017–2020) of two EU Interreg projects—Creative Ports and CTCC—this research reveals CCIs’ potential for sustainable development avenues. The investigation is based on case study methodology underpinned by empirical data gathered from participating Small and Medium-Sized Enterprises (SMEs) and topical experts met during the projects’ implementation and study visits. The present multi-project applied research reduces the research-to-practice gap pertaining to the so far underestimated role of CCIs for supporting traditional SMEs in the implementation of their sustainable ideas. Once engaged into cross-sectoral collaboration with traditional SMEs, CCIs become important brokers—sustainable innovation drivers and enablers within regional ecosystems through contribution to environmentally responsible, socially equitable and economically feasible solutions for the business they work with. Thus, on the one hand, CCIs support SMEs in their transition towards more sustainable managerial performance. On the other hand, CCIs overcome disconnection and increase their recognition through new collaboration opportunities, thus providing them with new capitalization avenues on the regional and international level.

Abstract The international shipping industry transports about 90 per cent of the global trade volume and is responsible for only two per cent of the anthropogenic carbon dioxide emissions. Consequently, the shipping sector is considered as an environmentally friendly transport mode. Nevertheless, global shipping can also improve its environmental footprint. So that in recent years clean shipping initiatives have been placed on the political agenda with the implementation of the Sulphur Emission Control Area (SECA) and Nitrogen Emission Control Area (ECA) regulations and the Global Cap. The next target of the International Maritime Organisation (IMO) in the sequel of the Paris Agreement of climate protection is dedicated to reduction of the Greenhouse Gas (GHG) emissions by up to 50 % until the year 2050. The paper investigates and discusses the research questions to what extent ammonia can be used in Baltic Sea Region (BSR) to propel merchant vessels and how ammonia can fulfil future demands under technical, economic and infrastructural aspects to become the green fuel for the Baltic Sea Region (BSR) shipping industry. The study benchmarks the properties of ammonia as marine fuel against Marine Gas Oil (MGO) and Liquified Natural Gas (LNG). The research is based on secondary data analysis that is complemented by expert interviews and case studies, and the results are empirically validated by data that were collected during the EU projects “EnviSuM”, “GoLNG”, “CSHIPP” and “Connect2SmallPorts” that took place within the last four years in the BSR.

Abstract Baltic Sea Region represents one of the most innovative areas within Europe with dominating SME sector. In order to keep the region and their product developments competitive it is necessary to safeguard access to high-tech labs including test services. This can be realized only through regional networks of universities – business cooperation. The European Union started the project “Test-4-SME” in 2017 to investigate and promote laboratory networks for testing and assessment of electronic products developed by SMEs from BSR. In a BSR wide online survey, the project consortium identified existing gaps in the regional supply of open laboratories together with shortcomings in services, expertise or test equipment, which is needed by SMEs for electronic product or devices testing. The authors take place in the “Test-4-SME” project, conducted the survey and analysed the regional demand together with the availability of labs for SME sector in the BSR. The study focusses on the research question in which BSR regions there exist already university-business networks of open labs for SME and to which extent the offered services meet the regional demand. Therefore, an approach of a gap analysis is used, which is based on primary data gathered in a BSR wide survey together with expert interviews. The results of the study are discussed in the context of the existing literature and recommendations for future improvements are highlighted.

Re-industrialization enjoys a renaissance in Western economies due to the role of the industrial sector for innovation, productivity, and job creation. A very promising approach to bring back competitiveness in production seems to be the fusion of the virtual and the real world leading to smart manufacturing and logistics concepts. In Germany, the leading industrial country in the European Union this approach has been called " Industry 4.0 " aiming to develop cyber-physical systems (CPS) and dynamic production networks in order to achieve flexible and open value chains in manufacturing of complex mass customization products in small series. Currently, manufacturing companies gaining experiences in production in networks and smart logistics and develop new organisational structures and business models which better benefit from the new technologies and which adapt faster to the rapidly changing network environments. The modern manufacturing models embrace modular and fractal approaches as well as network-orientation, flexibility and responsiveness. The paper investigates the relationship between networking, organizational development, structural frame conditions and sustainability in the context of Industry 4.0. The research is empirically validated by using data samples from a business reengineering project in an internationally operating high-tech manufacturing enterprise located in Estonia. The empiric analysis is based on semi-structured expert interviews and secondary data together with a case study approach.

Renewable energy technologies play a crucial role in solving global energy and environmental issues, and the pace of the energy transition directly depends on improving their efficiency. Presently, the development and implementation of renewable energy systems are ensured mainly through state funding, the possibilities of which are limited. The potential of attracting private investments depends directly on their impact on companies’ profitability indicators, and the uncertainty regarding the return on investments is one of the main barriers affecting investors’ decision-making. Based on a vector autoregressive model for analysing the stationary time series, the paper explores the impact of long-term investments and research and development costs in renewable energy technologies on the financial performance of ten of the largest companies operating in this field. The study’s results showed that investments and spending on research and development positively affect such companies’ profitability indicators as earnings before interest, taxes, depreciation and amortisation, earnings before interest and tax, net income, and return on investment. The obtained results can be used to substantiate the economic effectiveness of investments in developing and improving renewable energy technologies when forming the companies’ financial policies to support them.

According to the Porter hypothesis, regulations on environmental emissions under certain conditions can promote eco-innovation. This is why the technological innovation systems (TIS) theory sees regulatory pressure as a major system function critical in the take-off phase. In other words, the design and timing of any regulation may be decisive for the regulatory outcome. The research seeks to provide empirical evidence on how the Baltic Sea Sulphur Emission Control Area (SECA) has impacted the technological innovation system within the Baltic Sea Region maritime sectors. The results (1) show that regulatory compliance gave a knowledge development that has made it possible for clean-tech companies to engage in entrepreneurial activities that created new markets, (2) empirically support the TIS theory and the Porter hypothesis, and (3) provide qualitative evidence on how businesses see environmental regulation. The innovation system for ship sulphur emission abatement.

One of the consequences of the conflict in Ukraine relates to the growing shortfall in global ammonia production. There are additional negative global impacts on the availability of fertilizers and prices of ammonia (NH3). The shortage in ammonia production does not only influence the agroindustry but also the global shipping industry, as ammonia is positioned as a promising zero-carbon fuel and as a storage and transport medium for hydrogen. There are plans underway to start ammonia production in Estonia to minimize the consequences of the import stop of Russian ammonia in the context of the Ukrainian crisis. This study investigated the Baltic Sea Region (BSR) ammonia market and analyzed the economic implications of building an ammonia plant within the BSR. Using fuzzy real options models as the conceptual framework, together with secondary data analysis, case studies and expert interviews, the authors chart possible courses for the construction of ammonia production facilities within the region. Based on the case of the NH3 production plant, as well as the underlying distribution system, the study provides new economic perspectives for lower carbonization for the shipping industry, an attempt at creating a model for other European regions toward climate change mitigation.