{"title":"Ramification of Oil Prices on Renewable Energy Deployment","authors":"Osamah A. Alsayegh","volume":114,"journal":"International Journal of Economics and Management Engineering","pagesStart":1828,"pagesEnd":1833,"ISSN":"1307-6892","URL":"https:\/\/publications.waset.org\/pdf\/10004497","abstract":"
This paper contributes to the literature by updating the analysis of the impact of the recent oil prices fall on the renewable energy (RE) industry and deployment. The research analysis uses the Renewable Energy Industrial Index (RENIXX), which tracks the world’s 30 largest publicly traded companies and oil prices daily data from January 2003 to March 2016. RENIXX represents RE industries developing solar, wind, geothermal, bioenergy, hydropower and fuel cells technologies. This paper tests the hypothesis that claims high oil prices encourage the substitution of alternate energy sources for conventional energy sources. Furthermore, it discusses RENIXX performance behavior with respect to the governments’ policies factor that investors should take into account. Moreover, the paper proposes a theoretical model that relates RE industry progress with oil prices and policies through the fuzzy logic system.<\/p>\r\n","references":"[1]\tLow oil prices won't hurt renewable energy, The Guardian, 28 January, 2015. Accessed on 26 February, 2016. (http:\/\/www.theguardian.com\/environment\/2015\/jan\/28\/low-oil-prices-wont-hurt-renewable-energy-says-us-eia).\r\n[2]\tWorld Energy Outlook 2014. International Energy Agency, Paris, France, 2014.\r\n[3]\tM. Hope and P. Rosamund, \u201cWhat falling oil prices may mean for the future of renewable energy investment,\u201d The Carbon Brief, 6 January, 2015. Accessed on 26 Feb. 2016, (http:\/\/www.carbonbrief.org\/blog\/2015\/01\/what-falling-oil-prices-may-mean-for-the-future-of-renewable-energy-investment\/).\r\n[4]\tJ. M. Davies, \u201cFalling oil prices unlikely to impact renewable energy projects,\u201d The Engineer, 7 January 2016. Accessed on 27 February (http:\/\/www.theengineer.co.uk\/news\/news-analysis\/falling-oil-prices-unlikely-to-impact-renewable-energy-projects\/1019670.article).\r\n[5]\tP. Clark, \u201cThe Big Drop: Cheap oil burns green energy,\u201d Financial Times, 17 December, 2014. Accessed on 27 February 2016 (http:\/\/www.ft.com\/cms\/s\/0\/d328ee8a-8605-11e4-a105-00144feabdc0.html#axzz3SxZPhWIw).\r\n[6]\tE. Terrado, M. Mendis, and K. Fitzgerald, \u201cImpact of oil prices on renewable energy technologies,\u201d Working Paper, Industry and Energy Department, The World Bank, 1989.\r\n[7]\tB. Allan, \u201cOil price crash: What it means for the renewables industry,\u201d EDIE Newsroom, Environmental Data Interactive Exchange, 12 January, 2015. Accessed on 27 February 2016. (http:\/\/www.edie.net\/news\/6\/Oil-price-crash-What-it-means-for-the-renewables-industry\/27499\/).\r\n[8]\tBP Energy Outlook 2035, January 2014, BP (bp.com\/energyoutlook).\r\n[9]\tThe Outlook for Energy: A view to 2040, ExxonMobil, 2014.\r\n[10]\tJ. C. Reboredo, \u201cIs there dependence and systemic risk between oil and renewable energy stock prices?\u201d Energy Economics, Vol. 48, pp. 32-45, 2015.\r\n[11]\tJ. Inchauspe, R. Ripple and S. Tr\u00fcck, \u201cThe dynamics of returns on renewable energy companies: A state-space approach,\u201d Energy Economics, Vol. 48, pp. 325-335, 2015.\r\n[12]\tSadorsky, P., \u201cCorrelations and volatility spillovers between oil prices and the stock prices of clean energy and technology companies,\u201d Energy Economic, Vol. 34, pp. 248-255, 2012.\r\n[13]\tX. Wen, Y. Guo, Y. Wei and D. Huang, \u201cHow do the stock prices of new energy and fossil fuel companies correlate? Evidence from China,\u201d Energy Economic, Vol. 41, pp. 63-75, 2014.\r\n[14]\tRenewables 2015, Global Status Report, Renewable Energy Policy Network for the 21st Century (REN21), Paris, France.\r\n[15]\tPan-Arab Renewable Energy Strategy 2030, International Renewable Energy Agency, Abu Dhabi, UAE, 2014.\r\n[16]\tL.A. Zadeh, \"Fuzzy algorithms\". Information and Control, Vol. 12, No. 2, pp. 94\u2013102, 1968.\r\n[17]\tV. M. Rivas, J. J. Merelo, I. Rojas, G. Romero, P.A. Castillo, J. Carpio, \u201cEvolving two-dimensional fuzzy systems,\u201d Fuzzy Sets and Systems, Vol. 138, pp. 381-398, 2003.","publisher":"World Academy of Science, Engineering and Technology","index":"Open Science Index 114, 2016"}