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

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