Analysis of trends in the financial sector of the global fuel and energy complex

Keywords: global, trend, driver, financing, energy, future.

Abstract

Understanding the global impact of energy on the economy and the financial sector is crucial for improving their interaction, especially within the fuel and energy complex (FEC). This study aims to identify the primary investment drivers for the financial sector within the FEC. It incorporates opinions, conclusions, and forecasts from leading international organizations that monitor the financial sector and the FEC. Through comprehensive analysis, key investment drivers were identified, including renewable and nuclear energy, risks associated with nuclear energy usage, and the impact of traditional fossil fuel sources. The analysis revealed distinct clusters of investment drivers that shape the future development of the financial sector within the FEC. The study determined the rank, median, and relative ranking of investment attractiveness for each cluster and investment vector. This information is valuable for finance and economics specialists and holds scientific significance for experts studying globalization and energy sector trends. The complex cluster analysis used provides a structured system of potential investment drivers for the development of the financial sector within the FEC. This framework is applicable to related studies relying on expert opinions and forecasts.

Downloads

Download data is not yet available.

Author Biographies

Shakizada Niyazbekova, Financial University under the Government of the Russian Federation, Moscow, Russian Federation.                           

Ph.D. in Finance. Money Circulation and Credit, Associate Professor, Senior Researcher at the Scientific and Educational Center Sustainable Development, Moscow Witte University, Moscow, Russian Federation; Associate Professor at the Department of Banking and Financial Markets, Financial University under the Government of the Russian Federation, Moscow, Russian Federation.                           

Suzana Balova, Financial University under the Government of the Russian Federation, Moscow, Russian Federation.

Ph.D. in Economics, Аssociate Professor at the Logistics and Marketing Department, Financial University under the Government of the Russian Federation, Moscow, Russian Federation.

Zhanat Bulakbay, L.N.Gumilyov Eurasian National University, Nur–Sultan, Republic of Kazakhstan.

Ph.D. in Economics, Аssociate Professor, Аssociate Professor at the Finance Department, L.N.Gumilyov Eurasian National University, Nur–Sultan, Republic of Kazakhstan.

Leila Maisigova, Ingush State University, Magas, Russian Federation.

Ph.D. in Economics, Аssociate Professor at the Department “Accounting, Analysis and Audit”, Ingush State University, Magas, Russian Federation.

Marija Troyanskaya, Orenburg State University, Orenburg, Russian Federation.

Doctor of Economics, Associate Professor, Head of the Department of State and Municipal Administration, Orenburg State University, Orenburg, Russian Federation.

References

Abbas, J., Wang, L., Belgacem, S. B., Pawar, P. S., Najam, H., & Abbas, J. (2023). Investment in renewable energy and electricity output: The role of green finance, environmental tax, and geopolitical risk: Empirical evidence from China. Energy, 269, 126683. https://doi.org/10.1016/j.energy.2023.126683

Achuo, E., Kakeu, P., & Asongu, S. (2023). Financial development, human capital and energy transition: A global comparative analysis. European Xtramile Centre of African Studies WP/23/005. http://dx.doi.org/10.2139/ssrn.4316016

Adebayo, T. S., Kartal, M. T., Ağa, M., & Al-Faryan, M. A. S. (2023). Role of country risks and renewable energy consumption on environmental quality: Evidence from MINT countries. Journal of Environmental Management, 327, 116884. https://doi.org/10.1016/j.jenvman.2022.116884

Alam, M. M., Aktar, M. A., Idris, N. D. M., & Al-Amin, A. Q. (2023). World Energy Economics and Geopolitics amid COVID-19 and Post-COVID-19 Policy Direction: World Energy Economics and Geopolitics amid COVID-19. World Development Sustainability, 100048. https://doi.org/10.1016/j.wds.2023.100048

Ali, K., Jianguo, D., & Kirikkaleli, D. (2023). How do energy resources and financial development cause environmental sustainability? Energy Reports, 9, 4036-4048. https://doi.org/10.1016/j.egyr.2023.03.040

Al-Shetwi, A. Q. (2022). Sustainable development of renewable energy integrated power sector: Trends, environmental impacts, and recent challenges. Science of The Total Environment, 153645. https://doi.org/10.1016/j.scitotenv.2022.153645

Anu Singh, A. K., Raza, S. A., Nakonieczny, J., & Shahzad, U. (2023). Role of financial inclusion, green innovation, and energy efficiency for environmental performance? Evidence from developed and emerging economies in the lens of sustainable development. Structural Change and Economic Dynamics, 64, 213-224. doi: https://doi.org/10.1016/j.strueco.2022.12.008

Azam, M., Hunjra, A. I., & Taskin, D. (2023). Macroeconomic-Financial Policies and Climate Change Nexus: Theory & Practices. In Crises and Uncertainty in the Economy (pp. 51-69). Singapore: Springer Nature Singapore. https://doi.org/10.1007/978-981-19-3296-0_3

Ballal, V., Cavalett, O., Cherubini, F., & Watanabe, M. D. B. (2023). Climate change impacts of e-fuels for aviation in Europe under present-day conditions and future policy scenarios. Fuel, 338, 127316. https://doi.org/10.1016/j.fuel.2022.127316

Berkeley Earth. (2021, October 16). Environmental science, data, and analysis of the highest quality Independent, non-governmental, and open-source. https://berkeleyearth.org/

Bhattacharya, R., & Bose, D. (2023). Energy and water: COVID-19 impacts and implications for interconnected sustainable development goals. Environmental Progress & Sustainable Energy, 42(1), e14018. https://doi.org/10.1002/ep.14018

Bistline, J., Bragg-Sitton, S., Cole, W., Dixon, B., Eschmann, E., Ho, J., … Sowder, A. (2023). Modeling nuclear energy’s future role in decarbonized energy systems. IScience, 26(2), 105952. https://doi.org/10.1016/j.isci.2023.105952

Borio, C., Claessens, S., & Tarashev, N. (2023, April). Finance and climate change risk: Managing expectations. In CESifo Forum, 24(1), 5-7. Institute for Economic Research (Ifo). https://www.proquest.com/docview/2770726749?pq-origsite=gscholar&fromopenview=true

Caglar, A. E. (2023). Can nuclear energy technology budgets pave the way for a transition toward low-carbon economy: insights from the United Kingdom. Sustainable Development, 31(1), 198-210. https://doi.org/10.1002/sd.2383

Chen, Y., Jiang, J., Wang, L., & Wang, R. (2023). Impact assessment of energy sanctions in geo-conflict: Russian–Ukrainian war. Energy Reports, 9, 3082-3095. https://doi.org/10.1016/j.egyr.2023.01.124

Cheng, F., Luo, H., Jenkins, J. D., & Larson, E. D. (2023). The value of low-and negative-carbon fuels in the transition to net-zero emission economies: Lifecycle greenhouse gas emissions and cost assessments across multiple fuel types. Applied Energy, 331, 120388. https://doi.org/10.1016/j.apenergy.2022.120388

Chishti, M. Z., Sinha, A., Zaman, U., & Shahzad, U. (2023). Exploring the dynamic connectedness among energy transition and its drivers: Understanding the moderating role of global geopolitical risk. Energy Economics, 119(106570), 106570. https://doi.org/10.1016/j.eneco.2023.106570

Ciola, E., Turco, E., Gurgone, A., Bazzana, D., Vergalli, S., & Menoncin, F. (2023). Enter the MATRIX model:a Multi-Agent model for Transition Risks with application to energy shocks. Journal of Economic Dynamics & Control, 146(104589), 104589. https://doi.org/10.1016/j.jedc.2022.104589

Colenbrander, S., Vaze, P., Vikas, C., Ayer, S., Kumar, N., Vikas, N., & Burge, L. (2023). Low-carbon transition risks for India’s financial system. Global Environmental Change: Human and Policy Dimensions, 78(102634), 102634. https://doi.org/10.1016/j.gloenvcha.2022.102634

Colgan, J. D., & Hinthorn, M. (2023). International energy politics in an age of climate change. Annual Review of Political Science (Palo Alto, Calif.), 26(1). https://doi.org/10.1146/annurev-polisci-051421-124241

Dong, C., Wu, H., Zhou, J., Lin, H., & Chang, L. (2023). Role of renewable energy investment and geopolitical risk in green finance development: Empirical evidence from BRICS countries. Renewable Energy, 207, 234-241. https://doi.org/10.1016/j.renene.2023.02.115

Doytch, N., Elheddad, M., & Hammoudeh, S. (2023). The financial Kuznets curve of energy consumption: Global evidence. Energy Policy, 177(113498), 113498. https://doi.org/10.1016/j.enpol.2023.113498

Golgovici, F., Tudose, A. E., Diniasi, D., Nartita, R., Fulger, M., & Demetrescu, I. (2023). Aspects of applied chemistry related to future goals of safety and efficiency in materials development for nuclear energy. Molecules, 28(2), 874. https://doi.org/10.3390/molecules28020874

Gollakota, A. R., & Shu, C. M. (2023). COVID-19 and energy sector: Unique opportunity for switching to clean energy. Gondwana Research, 114, 93-116. https://doi.org/10.1016/j.gr.2022.01.014

Groves, D. I., Santosh, M., & Zhang, L. (2023). Net zero climate remediations and potential terminal depletion of global critical metal resources: A synoptic geological perspective. Geosystems and Geoenvironment, 2(1), 100136. https://doi.org/10.1016/j.geogeo.2022.100136

Ha, L. T. (2023). A wavelet analysis of dynamic connectedness between geopolitical risk and renewable energy volatility during the COVID-19 pandemic and Ukraine-Russia conflicts. Environmental Science and Pollution Research International. https://doi.org/10.1007/s11356-023-26033-1

Hassan, S. T., Wang, P., Khan, I., & Zhu, B. (2023). The impact of economic complexity, technological advances, and nuclear energy consumption on the ecological footprint of the USA: Towards circular economy initiatives. Gondwana Research, 113, 237-246. https://doi.org/10.1016/j.gr.2022.11.001

He, X., Khan, S., Ozturk, I., & Murshed, M. (2023). The role of renewable energy investment in tackling climate change concerns: Environmental policies for achieving SDG-13. Sustainable Development. https://doi.org/10.1002/sd.2491

Hossain, M. R., Singh, S., Sharma, G. D., Apostu, S.-A., & Bansal, P. (2023). Overcoming the shock of energy depletion for energy policy? Tracing the missing link between energy depletion, renewable energy development and decarbonization in the USA. Energy Policy, 174(113469), 113469. https://doi.org/10.1016/j.enpol.2023.113469

IEA. (2023a). World Energy Investment 2022. Paris, France: International Energy Agency. Retrieved from https://www.iea.org/

IEA. (2023b). Net Zero by 2050 A Roadmap for the Global Energy Sector. Paris, France: International Energy Agency. Retrieved from https://www.iea.org/

IMF. (2023). Fossil fuel investment in countries with and without net zero emissions pledges, 2015-22. Washington, D.C., U.S.: International Monetary Fund. Retrieved from https://www.imf.org/

IRENA. (2023). Global Landscape of Renewable Energy Finance 2022. Masdar City, United Arab Emirates: International Renewable Energy Agency. Retrieved from https://www.irena.org/

Jalgasovna, A. G., Abduvakhabovna, N. S., & Ramizitdinovna, T. B. (2023). Analysis and assessment of the sustainable development of fuel and energy complex enterprises in the conditions of the formation of the digital economy. Journal of Pharmaceutical Negative Results, 6587-6602. Doi: 10.47750/pnr.2022.13.S07.800

Jia, Q. (2023). The impact of green finance on the level of decarbonization of the economies: An analysis of the United States', China's, and Russia's current agenda. Business Strategy and the Environment, 32(1), 110-119. https://doi.org/10.1002/bse.3120

Kerimkulova, D., Nazekova, M., Sovetbekova, A., Muravskyi, O., & Krasovska, G. (2021). Assessment of the impact of bank lending on business entities’ performance using structural equation modeling. Banks and Bank Systems, 16(2), 68-77. https://doi.org/10.21511/bbs.16(2).2021.07

Khan, I., Zakari, A., Dagar, V., & Singh, S. (2022). World energy trilemma and transformative energy developments as determinants of economic growth amid environmental sustainability. Energy Economics, 108(105884), 105884. https://doi.org/10.1016/j.eneco.2022.105884

Khutorna, М., Rudenko, M., Nemish, Yu., Kulinich, T., & Hasii, O. (2021). The development of diagnostic tools for assessing the level of financial corporations’ stability by cascade approach. Financial and credit activity: problems of theory and practice, 4(39), 109-120. https://doi.org/10.18371/fcaptp.v4i39.241299

Kolodii, S., Gariaga, L., Rudenko, М., & Kolodii, S. (2019). Econometric analysis of indicators of development of financial and real economic sectors. Financial and credit activity: problems of theory and practice. 4(31), 279-290. https://doi.org/10.18371/fcaptp.v4i31.190917

Kumar, C. M. S., Singh, S., Gupta, M. K., Nimdeo, Y. M., Raushan, R., Deorankar, A. V., … Nannaware, A. D. (2023). Solar energy: A promising renewable source for meeting energy demand in Indian agriculture applications. Sustainable Energy Technologies and Assessments, 55(102905), 102905. doi: https://doi.org/10.1016/j.seta.2022.102905

Laureti, L., Massaro, A., Costantiello, A., & Leogrande, A. (2023). The Impact of Renewable Electricity Output on Sustainability in the Context of Circular Economy: A Global Perspective. Sustainability, 15(3), 2160. https://doi.org/10.3390/su15032160

Li, X., Raorane, C. J., Xia, C., Wu, Y., Tran, T. K. N., & Khademi, T. (2023). Latest approaches on green hydrogen as a potential source of renewable energy towards sustainable energy: Spotlighting of recent innovations, challenges, and future insights. Fuel, 334, 126684. https://doi.org/10.1016/j.fuel.2022.126684

Manigandan, P., Alam, M. S., Alagirisamy, K., Pachiyappan, D., Murshed, M., & Mahmood, H. (2023). Realizing the Sustainable Development Goals through technological innovation: juxtaposing the economic and environmental effects of financial development and energy use. Environmental Science and Pollution Research International, 30(3), 8239-8256. doi: https://doi.org/10.1007/s11356-022-22692-8

Marhasova, V., Kovalenko, Y., Bereslavska, O., Muravskyi, O., Fedyshyn, M., & Kolesnik, O. (2020). Instruments of monetary-and-credit policy in terms of economic instability. International Journal of Management, 11(5), 43-53. https://acortar.link/JZRnxm

Naumann-Woleske, K. (2023). Agent-based Integrated Assessment Models: Alternative Foundations to the Environment-Energy-Economics Nexus. arXiv preprint. https://doi.org/10.48550/arXiv.2301.08135

Nibedita, B., & Irfan, M. (2023). The Dynamic Nexus Among Energy Diversification and Carbon Emissions in the E7 Economies: Investigating the Moderating Role of Financial Development. Emerging Markets Finance and Trade, 1-14. https://doi.org/10.1080/1540496X.2022.2161817

Niyazbekova, S.U.,Ivanova, O.S., Suleimenova, B., Yerzhanova, S.K., & Berstembayeva, R.K. (2021). Oil and Gas Investment Opportunities for Companies in Modern Conditions. Studies in Systems, Decision and Control, 314, 669-676. https://acortar.link/zaKJTp

Nurpeisova, A., Mauina, G., Niyazbekova, S., Jumagaliyeva, A., Zholmukhanova, A., Tyurina, Y. G., Murtuzalieva, S., & Maisigova, L. A. (2020). Impact of R&D expenditures on the country’s innovative potential: a case study. Journal of Entrepreneurship and Sustainability Issues, 8(2), 682-697. https://doi.org/10.9770/jesi.2020.8.2(41)

OECD. (2023). Annual financial commitments in renewable energy, by technology, 2013-2022. Paris, France: Organisation for Economic Co-operation and Development. Retrieved from https://www.oecd.org/

Our World in Data. (2023a). Energy Production and Consumption. Oxford, England: Global Change Data Lab. Retrieved from https://ourworldindata.org/

Our World in Data. (2023b). CO2 emissions. Oxford, England: Global Change Data Lab. Retrieved from https://ourworldindata.org/

Polishchuk, Y., Kornyliuk, A., Lopashchuk, I., & Pinchuk, A. (2020). SMEs debt financing in the EU: on the eve of the coronacrisis. Banks and Bank Systems, 15(3), 81-94. doi: https://doi.org/10.21511/bbs.15(3).2020.08

Prokopenko, O.V., & Shkola, V.Y. (2012). Controlling of the ecological and economic enterprise security on the bases of ecomarketing. Marketing and Management of Innovation, 4, pp. 337-346.

Rehm, T. E. (2023). Advanced nuclear energy: the safest and most renewable clean energy. Current Opinion in Chemical Engineering, 39(100878), 100878. https://doi.org/10.1016/j.coche.2022.100878

Rode, A., Carleton, T., Delgado, M., Greenstone, M., Houser, T., Hsiang, S., … Yuan, J. (2021). Estimating a social cost of carbon for global energy consumption. Nature, 598(7880), 308-314. doi: https://doi.org/10.1038/s41586-021-03883-8

Sadiq, M., Shinwari, R., Wen, F., Usman, M., Hassan, S. T., & Taghizadeh-Hesary, F. (2023). Do globalization and nuclear energy intensify the environmental costs in top nuclear energy-consuming countries? Progress in Nuclear Energy, 156(104533), 104533. https://doi.org/10.1016/j.pnucene.2022.104533

Sayed, E. T., Olabi, A. G., Alami, A. H., Radwan, A., Mdallal, A., Rezk, A., & Abdelkareem, M. A. (2023). Renewable energy and energy storage systems. Energies, 16(3), 1415. https://doi.org/10.3390/en16031415

Shkola, V., Prokopenko, O., Stoyka, A., Nersesov, V., & Sapiński, A. (2021). Green Project Assessment within the Advanced Innovative Development Concept. Estudios de Economia Aplicada, 39(5). https://doi.org/10.25115/eea.v39i5.5135

Shpak, N., Ohinok, S., Kulyniak, I., Sroka, W., Fedun, Y., Ginevičius, R., & Cygler, J. (2022). CO2 emissions and macroeconomic indicators: Analysis of the most polluted regions in the world. Energies, 15(8), 2928. https://doi.org/10.3390/en15082928

Siddik, A. B., Khan, S., Khan, U., Yong, L., & Murshed, M. (2023). The role of renewable energy finance in achieving low-carbon growth: contextual evidence from leading renewable energy-investing countries. Energy (Oxford, England), 270(126864), 126864. https://doi.org/10.1016/j.energy.2023.126864

Simionescu, M. (2023). The renewable and nuclear energy-economic growth nexus in the context of quality of governance. Progress in Nuclear Energy, 157(104590), 104590. https://doi.org/10.1016/j.pnucene.2023.104590

Sotnyk, I., Kurbatova, T., Kubatko, O., Prokopenko, O., Prause, G., Kovalenko, Y., … & Pysmenna, U. (2021). Energy security assessment of emerging economies under global and local challenges. Energies, 14(18), 5860. https://doi.org/10.3390/en14185860

Tulchynska, S., Popelo, O., Marhasova, V., Nusinova, O., & Zhygalkevych, Z. (2021). Monitoring of the ecological condition of regional economic systems in the context of sustainable development. Journal of Environmental Management and Tourism, 12(5), 1220. https://doi.org/10.14505//jemt.v12.5(53).06

Wang, Z., Li, S., Jin, Z., Li, Z., Liu, Q., & Zhang, K. (2023). Oil and gas pathway to net-zero: Review and outlook. Energy Strategy Reviews, 45(101048), 101048. https://doi.org/10.1016/j.esr.2022.101048

WEF. (2020). COVID-19: What you need to know about the coronavirus pandemic on 14 September. Cologny, Switzerland: World Economic Forum. Retrieved from https://acortar.link/7ptCxW

WEF. (2023). Annual investment in renewable energy vs. fossil fuels, 2015-2022. Cologny, Switzerland: World Economic Forum. Retrieved from https://www.weforum.org/

Xu, H.-C., Wang, Z.-Y., Jawadi, F., & Zhou, W.-X. (2023). Reconstruction of international energy trade networks with given marginal data: A comparative analysis. Chaos, Solitons, and Fractals, 167(113031), 113031. https://doi.org/10.1016/j.chaos.2022.113031

Zioło, M. (2023). Environmental risk as a challenge for the banking sector. In Environmental Risk Modelling in Banking (pp. 5-22). Routledge. https://doi.org/10.4324/9781003310099
Published
2023-08-30
How to Cite
Niyazbekova, S., Balova, S., Bulakbay, Z., Maisigova, L., & Troyanskaya, M. (2023). Analysis of trends in the financial sector of the global fuel and energy complex. Amazonia Investiga, 12(67), 352-373. https://doi.org/10.34069/AI/2023.67.07.31
Section
Articles
Bookmark and Share