Tag Archives | Farhad Taghizadeh-Hesary Economics, HealthIndustry and tradeEconomics, EnergyEnvironment, Finance sector development, Industry and tradeEconomics, Industry and tradeEconomics, Finance sector development, Poverty, Social development and protectionEconomicsEconomics
By Farhad Taghizadeh-Hesary. Posted May 18, 2020
The recent collapse in oil prices in the global market was caused by a combination of supply and demand issues as well as uncertainty about the future, and has resulted in a crash in financial markets. But what are the reasons behind this collapse, and what impacts will it have on oil-exporting and oil-importing economies?
To meet obligations under the Paris Agreement, major investments in renewable energy production and infrastructure are necessary. However, as public budgets are tight and because of Basel capital requirements, major public investments are unlikely to provide sufficient liquidity. Since most renewable energy projects are considered risky, many financiers are reluctant to lend to them or they lend at high interest rates. This lack of financing has to be overcome.
The solar photovoltaic energy market has seen huge growth in recent years. Unlike solar thermal energy, which harnesses heat from sunlight to generate electricity, solar photovoltaics or PV is a technology that converts sunlight directly into electricity. The annual worldwide solar PV electricity production increased from 4 terawatt hours (TWh) in 2005 to 247 TWh in 2015 (IEA 2017). In 2016, cumulative solar PV generated over 310 TWh, 26% higher than in 2015 and representing just over 1% of global power output.
For many years, cities have been the engines of economic growth in Asia. However, this growth has brought the immense challenge of the daily generation of millions of tons of solid waste, especially in mega cities. The amount of solid waste being generated in Asia is drastically increasing as 44 million people are being added to city populations every year, and many cities are placing burdens on municipal as well as central governments. By 2050, 50% of the world’s population will live in the Asia and Pacific region (ADB, 2011).
Energy, especially from oil and its derivatives, is a key factor of production in an economy and is widely used in different sectors—including transportation, agriculture, and industry—in households, and as a raw material in the production of petrochemical products. As such, energy has great value and affects other commodity prices. Since the first oil price shock of 1973, examining the effects of changes in energy prices, especially of oil, on macro and microeconomic levels has become one of the most fundamental issues of energy economics (Taghizadeh-Hesary et al. 2013).
The World Bank (2014) estimates that international remittances to developing countries reached $436 billion in 2014. Remittances to the East Asia and the Pacific region and the South Asia region account for the largest and second-largest shares in the world. The authors examine the impact of international remittances on poverty reduction to determine whether such remittances contributed to a reduction in various indicators of poverty.
Considering the importance of small and medium-sized enterprises (SMEs) for employment and GDP and the number of such firms in Asian countries, further efforts need to be made to offer SMEs access to finance. Asian economies are often characterized as having bank-dominated financial systems and underdeveloped capital markets, and as a result, banks are the main source of financing for SMEs.
The price of oil has more than halved in the period of less than 5 months since September 2014. After nearly 5 years of stability, the price of a barrel of Brent crude oil in Europe fell from $117.15 on 6 September 2014, to $45.13 on 14 January 2015. Figure 1 shows the movements in the spot price of crude oil from June 2009 to February 2015, including the recent price drop.
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