IDEAS home Printed from https://ideas.repec.org/a/ers/journl/vxxivy2021i2bp938-955.html
   My bibliography  Save this article

Energy Sectors on Capital Market – Financing the Process “Towards Sustainability”

Author

Listed:
  • Leszek Dziawgo

Abstract

Purpose: The world economy continues its energy transformation towards sustainability. It is a complex, costly and time-consuming process. The transition of energy sectors towards sustainability wil require enormous financial outlays. The use of the capital market and gain of public support will be the basis of any successful Polish energy transformation. The objectives of the article are: presentation of experiences and possibilities of using Polish capital market in financing the transformation of the energy sector towards sustainability and to identify risk limit of this process. The article hypothesis is, usage of capital market by the energy sector in Poland is essential for financing of transformation energy towards sustainability. Design/Methodology/Approach: In the article, the following research methods were used: analysis of the literature of the subject, analysis of the legal acts and desk research as well. The theory was complemented with empirical studies using: case study, comparative analysis and questionnaire methods. Activity on capital market from key energy companies listed on WIG-Energy was analysed. Afterwards, questionnaire methods were applied on sample of individual investors and representative sample of the Polish society. Findings: Capital market is key source in financing energy transformation towards sustainability. Source of capital are both issue of shares and bonds. The awareness and attitude of investors and consumers regarding CSR, including RES, are not satisfactory. Promotion of the energy transformation of the economy is necessary. Practical Implications: Four key applicable conclusions were formulated: promote the CSR concept, including RES; reduce political risk; use of capital market in wider scale; control the cost of RES for society. Originality/value: Activity of energy sector companies was presented on capital market to obtain financing for transformation towards sustainability. Another advantage is consideration of attitude of both individual investors and representative sample of consumers. Investments in financial instruments of energy companies and consumption of goods and services connected with energy, could impact the process of energy transformation towards sustainability.

Suggested Citation

  • Leszek Dziawgo, 2021. "Energy Sectors on Capital Market – Financing the Process “Towards Sustainability”," European Research Studies Journal, European Research Studies Journal, vol. 0(2B), pages 938-955.
    • Handle: RePEc:ers:journl:v:xxiv:y:2021:i:2b:p:938-955
    as

    Download full text from publisher

    File URL: https://ersj.eu/journal/2316/download
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Leszek Dziawgo, 2014. "Greening financial market," Copernican Journal of Finance & Accounting, Uniwersytet Mikolaja Kopernika, vol. 3(2), pages 9-24.
    2. Shigeru Kimura & Youngho Chang & Yanfei Li, . "Financing Renewable Energy Development in East Asia Summit Countries A Primer of Effective Policy Instruments," Books, Economic Research Institute for ASEAN and East Asia (ERIA), number 2014-rpr-27 edited by Shigeru Kimura & Youngho Chang & Yanfei Li.
    3. Thiam Hee Ng, . "Bond Financing for Renewable Energy in Asia," Chapters, in: Shigeru Kimura & Youngho Chang & Yanfei Li (ed.), Financing Renewable Energy Development in East Asia Summit Countries A Primer of Effective Policy Instruments, chapter 11, pages 321-342, Economic Research Institute for ASEAN and East Asia (ERIA).
    4. Maryam Mangantar, 2019. "The Influence of Corporate Social Responsibility and Corporate Governance on Banking Financial Performance," European Research Studies Journal, European Research Studies Journal, vol. 0(3), pages 95-105.
    5. Agnieszka Alińska & Beata Zofia Filipiak & Aneta Kosztowniak, 2018. "The Importance of the Public Sector in Sustainable Development in Poland," Sustainability, MDPI, vol. 10(9), pages 1-24, September.
    6. Damian Walczak & Leszek Dziawgo & Danuta Dziawgo & Michał Buszko & Jarosław Pawłowski & Agnieszka Żołądkiewicz-Kuzioła & Dorota Krupa, 2021. "Attitudes and Behaviors Regarding Environmental Protection in the Financial Decisions of Individual Consumers," Energies, MDPI, vol. 14(7), pages 1-13, March.
    7. Jacqueline Yujia Tao, . "Utilising Green Bonds for Financing Renewable Energy Projects in Developing Asian Countries," Chapters, in: Shigeru Kimura & Youngho Chang & Yanfei Li (ed.), Financing Renewable Energy Development in East Asia Summit Countries A Primer of Effective Policy Instruments, chapter 12, pages 343-381, Economic Research Institute for ASEAN and East Asia (ERIA).
    8. Yildiz, Özgür, 2014. "Financing renewable energy infrastructures via financial citizen participation – The case of Germany," Renewable Energy, Elsevier, vol. 68(C), pages 677-685.
    9. Krzysztof Księżopolski & Mirosław Drygas & Kamila Pronińska & Iwona Nurzyńska, 2020. "The Economic Effects of New Patterns of Energy Efficiency and Heat Sources in Rural Single-Family Houses in Poland," Energies, MDPI, vol. 13(23), pages 1-19, December.
    10. Masini, Andrea & Menichetti, Emanuela, 2012. "The impact of behavioural factors in the renewable energy investment decision making process: Conceptual framework and empirical findings," Energy Policy, Elsevier, vol. 40(C), pages 28-38.
    11. Ng, Thiam Hee & Tao, Jacqueline Yujia, 2016. "Bond financing for renewable energy in Asia," Energy Policy, Elsevier, vol. 95(C), pages 509-517.
    12. Lana Ollier & Marc Melliger & Johan Lilliestam, 2020. "Friends or Foes? Political Synergy or Competition between Renewable Energy and Energy Efficiency Policy," Energies, MDPI, vol. 13(23), pages 1-23, December.
    13. Magdalena Ziolo & Beata Zofia Filipiak & Iwona Bąk & Katarzyna Cheba & Diana Mihaela Tîrca & Isabel Novo-Corti, 2019. "Finance, Sustainability and Negative Externalities. An Overview of the European Context," Sustainability, MDPI, vol. 11(15), pages 1-35, August.
    14. Sri Widyastuti & Muhammad Said & Safitri Siswono & Dian Andi Firmansyah, 2019. "Customer Trust through Green Corporate Image, Green Marketing Staretgy and Social Responsibility: A Case Study," European Research Studies Journal, European Research Studies Journal, vol. 0(3), pages 343-359.
    15. Venkatachalam Anbumozhi & Kaliappa Kalirajan & Fukunari Kimura (ed.), 2018. "Financing for Low-carbon Energy Transition," Springer Books, Springer, number 978-981-10-8582-6, January.
    16. Andrea Masini & E. Menichetti, 2012. "The impact of behavioural factors in the renewable energy investment decision making process: Conceptual framework and empirical findings," Post-Print hal-00651706, HAL.
    17. Danuta Dziawgo, 2012. "Investor Relations & Importance In The Global Financial Market," Equilibrium. Quarterly Journal of Economics and Economic Policy, Institute of Economic Research, vol. 7(2), pages 59-76, June.
    18. Sri Widyastuti & Muhammad Said & Safitri Siswono & Dian Andi Firmansyah, 2019. "Customer Trust through Green Corporate Image, Green Marketing Strategy, and Social Responsibility: A Case Study," European Research Studies Journal, European Research Studies Journal, vol. 0(2), pages 83-99.
    19. Mochamad Soelton & Yanto Ramli & Dewi Anggraini & Danny Khosasi, 2020. "Implementing Good Corporate Governance to Engage Corporate Social Rerponsibility in Financial Performance," European Research Studies Journal, European Research Studies Journal, vol. 0(1), pages 239-258.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Kariyawasam Galoluwage Madurika Nanayakkara & Sisira Colombage, 2021. "Does compliance with Green Bond Principles bring any benefit to make G20’s ‘Green economy plan’ a reality?," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 61(3), pages 4257-4285, September.
    2. Danuta Dziawgo, 2021. "Acceptance of Sustainability Concept by Polish Individual Investors," European Research Studies Journal, European Research Studies Journal, vol. 0(3), pages 335-348.
    3. Yoshino, Naoyuki & Taghizadeh–Hesary, Farhad & Nakahigashi, Masaki, 2019. "Modelling the social funding and spill-over tax for addressing the green energy financing gap," Economic Modelling, Elsevier, vol. 77(C), pages 34-41.
    4. Shahriyar Nasirov & Carlos Silva & Claudio A. Agostini, 2015. "Investors’ Perspectives on Barriers to the Deployment of Renewable Energy Sources in Chile," Energies, MDPI, vol. 8(5), pages 1-21, April.
    5. Menyeh, Bridget Okyerebea, 2021. "Financing electricity access in Africa: A choice experiment study of household investor preferences for renewable energy investments in Ghana," Renewable and Sustainable Energy Reviews, Elsevier, vol. 146(C).
    6. Bauwens, Thomas, 2019. "Analyzing the determinants of the size of investments by community renewable energy members: Findings and policy implications from Flanders," Energy Policy, Elsevier, vol. 129(C), pages 841-852.
    7. Arnold, Uwe & Yildiz, Özgür, 2015. "Economic risk analysis of decentralized renewable energy infrastructures – A Monte Carlo Simulation approach," Renewable Energy, Elsevier, vol. 77(C), pages 227-239.
    8. Grashof, Katherina, 2019. "Are auctions likely to deter community wind projects? And would this be problematic?," Energy Policy, Elsevier, vol. 125(C), pages 20-32.
    9. Hall, Stephen & Roelich, Katy E. & Davis, Mark E. & Holstenkamp, Lars, 2018. "Finance and justice in low-carbon energy transitions," Applied Energy, Elsevier, vol. 222(C), pages 772-780.
    10. Jenner, Steffen & Groba, Felix & Indvik, Joe, 2013. "Assessing the strength and effectiveness of renewable electricity feed-in tariffs in European Union countries," Energy Policy, Elsevier, vol. 52(C), pages 385-401.
    11. Zheng, Xiaotian & Zhou, Youcheng & Iqbal, Sajid, 2022. "Working capital management of SMEs in COVID-19: role of managerial personality traits and overconfidence behavior," Economic Analysis and Policy, Elsevier, vol. 76(C), pages 439-451.
    12. Zhang, Xinhua & Yang, Hongming & Yu, Qian & Qiu, Jing & Zhang, Yongxi, 2018. "Analysis of carbon-abatement investment for thermal power market in carbon-dispatching mode and policy recommendations," Energy, Elsevier, vol. 149(C), pages 954-966.
    13. Best, Rohan & Burke, Paul J., 2018. "Adoption of solar and wind energy: The roles of carbon pricing and aggregate policy support," Energy Policy, Elsevier, vol. 118(C), pages 404-417.
    14. Yuanxin Liu & FengYun Li & Xinhua Yu & Jiahai Yuan & Dong Zhou, 2018. "Assessing the Credit Risk of Corporate Bonds Based on Factor Analysis and Logistic Regress Analysis Techniques: Evidence from New Energy Enterprises in China," Sustainability, MDPI, vol. 10(5), pages 1-21, May.
    15. Shrimali, Gireesh & Nelson, David & Goel, Shobhit & Konda, Charith & Kumar, Raj, 2013. "Renewable deployment in India: Financing costs and implications for policy," Energy Policy, Elsevier, vol. 62(C), pages 28-43.
    16. Lim, Xin-Le & Lam, Wei-Haur, 2014. "Public Acceptance of Marine Renewable Energy in Malaysia," Energy Policy, Elsevier, vol. 65(C), pages 16-26.
    17. repec:eco:journ2:2017-04-15 is not listed on IDEAS
    18. John Foster & Liam Wagner, 2014. "International experience with transformations in electricity markets: A Short Literature Review," Energy Economics and Management Group Working Papers 2-2014, School of Economics, University of Queensland, Australia.
    19. Gliedt, Travis & Hoicka, Christina E., 2015. "Energy upgrades as financial or strategic investment? Energy Star property owners and managers improving building energy performance," Applied Energy, Elsevier, vol. 147(C), pages 430-443.
    20. Muhammad Danish & Saqib Ali & Muhammad Azeem Ahmad & Hasan Zahid, 2019. "The Influencing Factors on Choice Behavior Regarding Green Electronic Products: Based on the Green Perceived Value Model," Economies, MDPI, vol. 7(4), pages 1-18, October.
    21. Ilbahar, Esra & Kahraman, Cengiz & Cebi, Selcuk, 2022. "Risk assessment of renewable energy investments: A modified failure mode and effect analysis based on prospect theory and intuitionistic fuzzy AHP," Energy, Elsevier, vol. 239(PA).

    More about this item

    Keywords

    Sustainable finance; capital market; energy listed companies; CSR; renewable energy sources.;
    All these keywords.

    JEL classification:

    • D14 - Microeconomics - - Household Behavior - - - Household Saving; Personal Finance
    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ers:journl:v:xxiv:y:2021:i:2b:p:938-955. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Marios Agiomavritis (email available below). General contact details of provider: https://ersj.eu/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.