Title:
Assessing the Risk Appetite of EU Bioenergy and Unconventional Gas Shareholders on Regulatory Changes
Author(s):
Gyparis, I.G., Sidiras, D.K.
Document(s):
Paper
Slide presentation
Abstract:
The Paris Agreement was an international policy framework adopted to confront the climate change. It is believed that the agreement highlighted the end of the fossil fuel era. European Commission issued a series of short and long-term targets to comply with the agreement in all sectors of economy. The radical technological developments in natural gas market due to the unconventional gas growth and the increasing share of bioenergy in Europe will define the prospective policy regimes regarding the Climate Change. This study aims at quantifying the financial risk aversion of investors to regulatory changes in the energy sector. The study focused on the reaction of both unconventional gas and bioenergy companies on policy announcements in the EU energy sector to reach the Accord. Using Datastream, European companies that operate in unconventional gas and bioenergy industry were identified. Stock price fluctuations were examined to assess risk aversion using market model, market adjusted and mean adjusted model to ensure robustness. The short-term impact of the events was detected using parametric and non-parametric statistical tests. The EU Commission should continue to support developments guaranteeing the secure implementation of Paris Agreement and reduce financial risks, promoting sustainable development and energy efficient technologies.
Keywords:
climate change, energy efficiency, shale gas, Paris Accord, strategic decisions
Topic:
Biomass Policies, Markets and Sustainability
Subtopic:
Market implementation, investments & financing
Event:
26th European Biomass Conference and Exhibition
Session:
4CO.2.4
Pages:
1268 - 1278
ISBN:
978-88-89407-18-9
Paper DOI:
10.5071/26thEUBCE2018-4CO.2.4
Price:
FREE
