Econometric study of the Spanish electricity spot market and primary energy markets using VAR/VECM methodology (cointegration and nonstationary time series)

The aim of this work is to study the dynamic relationship between prices of wholesale electricity market in Spain and prices of the main fuel references to generate electricity (coal, crude oil, gasoil and natural gas). The dynamic relationship between the various interconnected electrical systems (Spain and Portugal, Spain and France), using as reference prices for wholesale electricity markets formed in each electrical system, is also relevant for analysis purposes due to impacts on prices of wholesale electricity market in Spain. The results suggest: cointegration between prices of wholesale electricity market in Spain and the variables under analysis (fuel and wholesale electricity market prices); a long-term relationship between prices of wholesale electricity market in Spain, coal prices, crude oil prices, gasoil prices, natural gas prices of the Dutch TTF market and the prices of wholesale electricity market in Portugal; a short-run relationship between prices of wholesale electricity market in Spain and natural gas prices of the English NBP market and Belgian Zeebrugge market; the presence of strong exogeneity in the relationship between prices of wholesale electricity market in Spain and prices of wholesale electricity market in France; proportionality between crude oil prices, natural gas prices of the Dutch TTF market and prices of wholesale electricity market in Spain; and the evidence of asymmetry in the electricity prices from the wholesale market in Portugal with “steep” movements in relation to prices of wholesale electricity market in Spain. A number of implications will be addressed.Pretende-se com este trabalho estudar a relação dinâmica entre os preços de electricidade do mercado grossista em Espanha e os preços das principais referências de combustível para a geração de electricidade (carvão, petróleo, gasóleo e o gás natural). A relação dinâmica entre os diferentes sistemas eléctricos interligados (Espanha e Portugal, Espanha e França), utilizando como referência os preços de electricidade dos mercados grossistas formados em cada sistema eléctrico, também é relevante para efeitos de análise, pois impacta na evolução dos preços de electricidade do mercado grossista em Espanha. Os resultados sugerem: cointegração entre os preços de electricidade do mercado grossista em Espanha e das variáveis em análise (combustíveis e preços de electricidade grossistas); relação de longo prazo entre os preços de electricidade do mercado grossista em Espanha, os preços do carvão, os preços do petróleo, os preços do gasóleo, os preços do gás natural do mercado holandês TTF e os preços de electricidade do mercado grossista em Portugal; relação de curto prazo entre os preços de electricidade do mercado grossista em Espanha e os preços do gás natural do mercado inglês NBP e do mercado belga Zeebrugge; foi encontrada exogeneidade forte na relação entre os preços de electricidade do mercado grossista em Espanha e os preços de electricidade do mercado grossista em França; proporcionalidade entre os preços do petróleo, os preços do gás natural do mercado holandês TTF e os preços de electricidade do mercado grossista em Espanha; e a evidência de assimetria dos preços de electricidade do mercado grossista em Portugal com movimentos “abruptos” na sua relação com os preços de electricidade do mercado grossista em Espanha. Uma série de implicações serão abordadas

Empirical essays on the price formation in resource markets

The thesis at hand seeks to augment the understanding of price formation in resource markets. More specifically, the five essays that are part of the thesis are concerned with two research questions: i) Do players in resource markets behave strategically and, if so, how does their behaviour influence price formation? ii) How do different trade products of the same commodity influence each other's price formation? While the first four essays focus on the former research question, the final essay is concerned with the latter. Chapter 2 assesses the effects of a supply shock on the global natural gas market. By modelling gas supply as a spatial Cournot oligopoly, the paper investigates the vulnerability of different gas importing countries to price increases during a supply shock. It seeks to evaluate the countries' strategic positions during a crisis, which are mainly influenced by their access to gas infrastructure and resource endowment. Chapter 3 deals again with supply-side oligopolies. However, the paper presented here does not account only for one market but rather for two interacting markets. The research is motivated by the need for complementary inputs in steel production, namely iron ore and coking coal. Interestingly, some of the biggest mining companies play a major role in both markets. Therefore, we question the optimal business strategy for these oligopolists: Do they optimise the iron ore and the coking coal divisions on a firm or a division level? In contrast to the previous chapters, Chapter 5 presents an econometric analysis that uses a novel application of stochastic frontier analysis (SFA) to determine the exercise of market power in the iron ore market on a firm level. More specifically, the effect of macroeconomic variables and firm-specific characteristics on the individual firm's ability to drive prices above marginal costs measured by firm-specific Lerner indices is estimated. The focus of the thesis’ final chapter lies on the analysis of price formation in the international market for thermal coal. International trade of thermal coal, and in particular trade of derivatives, is still in its infancy compared to other commodity markets. We are interested in better understanding the process of price formation in such an environment. To this end, we analyse price formation in an intertemporal framework, i.e., the causal relationship between spot and futures prices, as well as an interregional context, i.e., between prices of two of the most important global trading hubs

Integrated human exposure to air pollution

The book “Integrated human exposure to air pollution” aimed to increase knowledge about human exposure in different micro-environments, or when citizens are performing specific tasks, to demonstrate methodologies for the understanding of pollution sources and their impact on indoor and ambient air quality, and, ultimately, to identify the most effective mitigation measures to decrease human exposure and protect public health. Taking advantage of the latest available tools, such as internet of things (IoT), low-cost sensors and a wide access to online platforms and apps by the citizens, new methodologies and approaches can be implemented to understand which factors can influence human exposure to air pollution. This knowledge, when made available to the citizens, along with the awareness of the impact of air pollution on human life and earth systems, can empower them to act, individually or collectively, to promote behavioral changes aiming to reduce pollutants’ emissions. Overall, this book gathers fourteen innovative studies that provide new insights regarding these important topics within the scope of human exposure to air pollution. A total of five main areas were discussed and explored within this book and, hopefully, can contribute to the advance of knowledge in this field

Exploring the Relationship between Tourism and Economic Growth in Small Island Economies: A Study of Fiji

This study examines the effect of tourism, measured by visitor arrivals) on the economic growth of Fiji, a small island economy, over the period 1975 to 2015. We use a neoclassical framework and regression analysis to examine the short-run and the long-run effects of tourism whilst accounting for structural breaks. We confirm the presence of a long-run association using the two-step procedure of Engle and Granger (1987) and the ARDL bounds test of Pesaran, Shin and Smith (2001). From the long-run results, we note that a 1% increase in visitor arrivals contribute about 0.22% to the GDP per capita. The short run elasticity is noted to be 0.19%. The study finds evidence of a unidirectional causality from economic growth to tourism, and mutually reinforcing effect between capital investment and tourism. Thus, we can expect greater impact of tourism on the economic growth through tourism related investment activities such as improvements in airports, roads, transportation, financial sector and telecommunications, and parks and beaches

A Corpus-driven Approach toward Teaching Vocabulary and Reading to English Language Learners in U.S.-based K-12 Context through a Mobile App

In order to decrease teachers’ decisions of which vocabulary the focus of the instruction should be upon, a recent line of research argues that pedagogically-prepared word lists may offer the most efficient order of learning vocabulary with an optimized context for instruction in each of four K-12 content areas (math, science, social studies, and language arts) through providing English Language Learners (ELLs) with the most frequent words in each area. Educators and school experts have acknowledged the need for developing new materials, including computerized enhanced texts and effective strategies aimed at improving ELLs’ mastery of academic and STEM-related lexicon. Not all words in a language are equal in their role in comprehending the language and expressing ideas or thoughts. For this study, I used a corpus-driven approach which is operationalized by applying a text analysis method. For the purpose of this research study, I made two corpora, Teacher’s U.S. Corpus (TUSC) and Science and Math Academic Corpus for Kids (SMACK) with a focus on word lemma rather than inflectional and derivational variants of word families. To create the corpora, I collected and analyzed a total of 122 textbooks used commonly in the states of Florida and California. Recruiting, scanning and converting of textbooks had been carried out over a period of more than two years from October 2014 to March 2017. In total, this school corpus contains 10,519,639 running words and 16,344 lemmas saved in 16,315 word document pages. From the corpora, I developed six word lists, namely three frequency-based word lists (high-, mid-, and low-frequency), academic and STEM-related word lists, and essential word list (EWL). I then applied the word lists as the database and developed a mobile app, Vocabulary in Reading Study – VIRS, (available on App Store, Android and Google Play) alongside a website (www.myvirs.com). Also, I developed a new K-12 dictionary which targets the vocabulary needs of ELLs in K-12 context. This is a frequency-based dictionary which categorizes words into three groups of high, medium and low frequency words as well as two separate sections for academic and STEM words. The dictionary has 16,500 lemmas with derivational and inflectional forms

Chapter 8: Information Technology and the New Capitalism

Harnessing Digitalization for Sustainable Economic Development: Insights for Asia describes digitalization’s role in raising the productive capacities of economies. It examines how digital transformation can enhance trade, financial inclusion, and firm competitiveness, as well as how greater digital infrastructure investment, internet connectivity, and financial and digital education in the region can maximize digitalization’s economic benefits. It also explains the importance of striking the right balance between the regulation and supervision of financial technology to enable innovation and safeguarding financial stability and consumer protection. Part I of the book seeks to build an understanding of digitalization’s effects on macroeconomic performance, including through trade channels and financial inclusion. Part II examines automation and the impact advancements in digital technology can have on firms via technology spillovers and the labor market. Finally, Part III highlights onward policy challenges for achieving sustainable and inclusive economic development outcomes amid accelerating technological change and demand for a more digitalized economy