• Energy Research

The interconnected global trading system has proved to be both vulnerable and resistant to crises, despite its asymmetries. The global trading system is constantly changing under the influence of such factors as the digitalization of economic processes and the growing number of nontariff measures to regulate trade volumes, including trade protection measures introduced by countries in order to ensure national economic interests etc. This article analyzes the impact of the tariff and nontariff instruments of export and import regulation on the asymmetries of the global trading system across countries and separate customs territories, depending on their presence in geographical regions or groups of countries associated with different levels of economic development. In order to quantify the possible asymmetries in the global trading system, analysis of variance and regression analysis are applied to explain the variance in the volume of global trade. The regression models for the dependence of export volumes on a number of trade indicators are fitted for developed, developing, and least-developed countries alongside the global trading system as a whole. The research showed that asymmetries of the global trading system exist on the global, regional and bilateral levels. In this research, two types of asymmetries are discussed: asymmetry directly and indirectly linked to international trade processes. To ensure economic development, the global trading system must be modernized so as to reduce the asymmetry. Accordingly, in order to increase effectiveness of the World Trade Organization, suggestions are proposed in regards to reconsidering trade-dispute settling, improving the monitoring of members’ obligations, increasing negotiation process efficiency and defining criteria for categorizing members according to their economic development.

This paper proposes a framework for assessing the financial sustainability of a wine producing company. The probabilistic approach is used to model the expected changes in the financial situation of an enterprise based on the historical trends. The case of an enterprise in Ukraine is considered as an illustration. The Markov chain is adopted for the forecasting exercise. Using the Markov chain framework allows one to predict the probability of financial security change for several periods ahead. The forecast relies on the transition probabilities obtained by exploiting the historical data. The proposed framework is implemented by construction of the financial security level transition matrices for three scenarios (optimistic, baseline and pessimistic). The case study of a Ukrainian wine producing company is considered. The possibilities for applying the proposed method in establishing anti-crisis financial strategy are discussed. The research shows how forecasting the financial security level of a company can serve in anti-crisis financial potential buildup.

The European transition to green economy is based on long-term strategies. The Europe 2020 Strategy was launched in 2010 in order to promote smart, sustainable, and inclusive growth in the region. Later, the ambitions regarding this strategy were followed by the Green Deal and Sustainable Development Goals. Now, the effort of countries towards the green economy is even more relevant than ever because of the context of today’s global energy crisis and economic uncertainty due to many challenges such as the COVID-19 pandemic or Russia invasion of Ukraine. This paper seeks to assess the countries’ achievements in seeking climate change and energy targets of the Europe 2020 Strategy by applying the innovative multi-criteria decision-making (MCDM) technique. The kernel-based comprehensive assessment (KerCA) method was applied for the calculations of the progress achieved and countries’ rankings. It allows to evaluate countries’ achievements and compare them using the mathematical models. The analysis of the national target implementation in the countries allows to determine the compliance of countries with their commitments and liability towards other countries and the European Union (EU). An analysis of the implementation of the strategy can serve as a guide to further develop climate change and energy policy in the region. Furthermore, the added value of the article is systematic overview of scientific studies proposing different methodologies for the analysis of target implementation at the whole region level. The novelty of this paper also relies on the approach, which considers not only the level of achievement of the target, but also assesses the excess.

The penetration of renewable energy is one of the main challenges for sustainable energy development. Local governments across the European Union commit to development and implementation of the Sustainable Energy (and Climate) Action Plan. This paper focuses on the case of Lithuania—a Central and Eastern European country. Almost one-third of Lithuanian municipalities have joined the Covenant of Mayors and prepared the plans that include SWOT analysis. However, there is a lack of information on how those plans contribute to climate change mitigation and sustainable energy development. This study identifies the links between key policy financial instruments, increasing energy efficiency. The Strategic Action Plans aimed at reducing GHG emissions and energy consumption in Lithuanian municipalities are analyzed. The challenges in promoting the renewable energy generation in Lithuanian rural regions are discussed. Moreover, the importance of strengths, weaknesses, opportunities, and threats identified is elicited at the local level. The study uses a combination of methods, such as expert surveys and SWOT analysis, that complements the tools used for regional energy climate planning and allows for overarching analysis. The expert survey shows that priority is given for renovation of buildings and modernization of energy infrastructure, making them more sustainable and more energy efficient. The results also show that, in the case of Lithuania (and possibly elsewhere in the post-Soviet countries), conditions and opportunities should be created beforehand to increase energy efficiency. Once this is achieved, the policies should focus on energy transition by switching to sustainable energy resources.

Though there are areas of climate change mitigation linked to household’s energy consumption having huge greenhouse gas (GHG) emission reduction potential as energy renovation or installation of micro generation technologies using renewable energy sources, these GHG emission reduction potentials are not realized so far. The main input of the paper is to overcome this gap and to provide a systematic review of the main barriers of climate change mitigation behavior linked to energy consumption in households and to develop policies to overcome these barriers. The main policies and measures to reduce GHG emissions of energy combustion in households are promotion of renewable energy consumption and energy efficiency improvements however, these policies have been not successful in overcoming some important barriers of climate change mitigation in households. The empirical evidence of behavioral failures is deepened in this paper and the correlation between market barriers, unsuccessful climate change mitigation policies and behavioral and psychological barriers is provided based on systematic literature review.

A wide range of climate change mitigation policies have been developed around the world and these policies have become one of the major concerns, however there is still debate among scientists about what are the main external benefits and how to account for them and prepare effective climate change mitigation policies that might be widely accepted by society in general. One of the main ways to assess external benefit of climate change mitigation in energy sector is to conduct Willingness to Pay (WTP) assessments for climate change mitigation options by households. There are many studies on WTP assessment for climate stability conducted in recent years. The paper surveys the existing literature on WTP for climate change mitigation policy in the energy sector. The aim of the paper is to identify the common variables across a varied set of WTP studies in order to establish a basis for comparison. The key variables selected for analysis of WTP studies for climate change mitigation in energy sector addressed in the paper are: the WTP assessment methods; the main attributes used for comparing alternatives in WTP studies, targeted climate change mitigation policies in energy sector, mathematical model used to estimate WTP, the main socio-demographic factors having impact on WTP for climate change mitigation policies. The analysis of WTP studies for climate change mitigation is grouped in two areas: renewables and energy efficiency measures in households. The paper provides analytical structure for future studies to evaluate the effects of variation in key comparative elements upon WTP.

Air pollution has become an increasingly serious environmental problem in China. Especially in winter, the air pollution in northern China becomes even worse due to winter heating. The “coal to gas” policy, which uses natural gas to replace coal in the heating system in winter, was implemented in Beijing in the year 2013. However, the effects of this policy reform have not been examined. Using a panel dataset of 16 districts in Beijing, this paper employs a first difference model to examine the impact of the “coal to gas” policy on air quality. Strong evidence shows that the “coal to gas” policy has significantly improved the air quality in Beijing. On average, the “coal to gas” policy reduced sulfur dioxide (SO2), nitrogen dioxide (NO2), particulate matter smaller than 10 µm (PM10), particulate matter smaller than 2.5 µm (PM2.5) and carbon monoxide (CO) by 12.08%, 4.89%, 13.07%, 11.94% and 11.10% per year, respectively. We find that the “coal to gas” policy is more effective in areas with less energy use efficiency. The finding of this paper suggests that the government should continue to implement the “coal to gas” policy, so as to alleviate the air pollution in Beijing, China.