Login (DCU Staff Only)
Login (DCU Staff Only)

DORAS | DCU Research Repository

Explore open access research and scholarly works from DCU

Advanced Search

Risk network of global energy market

Uddin, Gazi Salah, Luo, Tianqi orcid logoORCID: 0000-0002-9210-2981, Yahya, Muhammad, Jayasekera, Ranadeva, Rahman, Md Lutfur and Okhrin, Yarema (2023) Risk network of global energy market. Energy Economics, 125 . ISSN 0140-9883

Abstract
This study evaluates extreme uncertainty connectedness among top global energy firms. The sample comprises of 68 firms from four energy-related subsectors (oil & gas, oil & gas related equipment and services, multiline utilities, and renewable energy). To provide an overview of tail connectedness, we construct a high-dimensional network between firms by utilizing a generalized error decomposition and a sparse vector autoregression framework with a latent common factor. Our empirical results indicate that between the four subsectors, the renewable energy subsector exhibits the highest uncertainty transmission to other underlying subsectors, primarily credited to an increased within-subsector idiosyncratic uncertainty before the COVID-19 crisis. After the burst of the COVID-19 pandemic, due to the higher connectedness, the role of the renewable energy companies in the spillover network is further intensified. The uncertainty connectedness demonstrates a time-varying trait. While the oil and gas subsector exhibits greater long-term linkages with the oil and gas related equipment and services subsector, the long-run dynamics exhibit a lower interconnectedness as compared to the short-run. Finally, there is an increased connectedness among companies operating in the same subsector with similar size, attributing to similarity and competition.
Metadata
Item Type:Article (Published)
Refereed:Yes
Uncontrolled Keywords:Energy companies; Systemic risk; Risk spillover; High-dimensional network
Subjects:Business > Innovation
Social Sciences > Globalization
Social Sciences > International relations
DCU Faculties and Centres:DCU Faculties and Schools > DCU Business School
Publisher:Elsevier
Official URL:https://www.sciencedirect.com/science/article/pii/...
Copyright Information:Authors
ID Code:32753
Deposited On:08 Jun 2026 09:41 by Tam Nguyen . Last Modified 08 Jun 2026 09:41
Documents

Full text available as:

[thumbnail of 1-s2.0-S0140988323003808-main.pdf]
Preview
PDF - Requires a PDF viewer such as GSview, Xpdf or Adobe Acrobat Reader
Creative Commons: Attribution 4.0
8MB
Metrics

Altmetric Badge

Dimensions Badge

Downloads

Downloads

Downloads per month over past year

Archive Staff Only: edit this record