A New Perspective on Energy Contagion in Colombia: Evidence from Wavelet Analysis and Co-Movement Dynamics
Journal Title: Revista CEA - Year 2024, Vol 10, Issue 22
Abstract
Purpose: The aim of this study was to examine the existence of energy contagion from the most important energy indicators—oil, natural gas, and coal—to spot electricity prices in Colombia. Design/Methodology: The methodology employed here was correlational, with a quantitative approach. Daily data from February 2011 to December 2018 were used, excluding the 2008 financial crisis and the Covid-19 pandemic. The data were sourced from Refinitiv and XM. Wavelet analysis and co-movement dynamics were applied. Additionally, cross-correlation was used to analyze financial contagion from energy indicators to spot electricity prices. Findings: This study demonstrated that there are significant long-term correlations between energy indicators and spot electricity prices. It also determined the presence of energy contagion from natural gas and Brent crude oil to spot electricity prices during crisis periods. Regarding coal, there is no clear evidence of contagion. These findings are relevant for understanding how changes in the global energy market can affect electricity prices in the long term in an emerging economy like Colombia. Conclusions: Energy contagion impacts the global economy, especially in energy-dependent emerging markets. This study emphasizes the need to understand and mitigate risks in the energy market, offering key information to companies, investors, and policymakers. Originality: Advanced methods were employed here to analyze the impact of international fuel prices on the Colombian electricity market, identifying contagion periods and highlighting the vulnerability of emerging economies to changes in the global energy market.
Authors and Affiliations
Luis Angel Meneses Cerón, Jorge Eduardo Orozco Álvarez, Juan Camilo Mosquera Muñoz, Víctor Manuel Vélez Rivera
A Model to Evaluate Users’ Satisfaction of a Cost Information System
The satisfaction of internal users with the information provided by cost systems is rarely assessed. Nevertheless, cost information systems fulfill an important function in business management because they show indicator...
A Review of the Factors Influencing Greenwashing and Green Brand Equity: A Research Agenda
Purpose: To identify the elements or factors that influence the relationship between greenwashing and green brand equity. Design/methodology: To carry out this study, we adopted an exploratory methodology with a qualita...
Motivations and Barriers for Catalonian SMEs to Use E-marketing Strategies and Consumer Fit: The Case of Alt Empordà County
Small and medium-sized enterprises (SMEs) in different contexts face several challenges to adapt and apply digital tools to their marketing strategies. This study, conducted in Alt Empordà County (Catalonia, Spain), anal...
Aging and personal finance: a long-term behavior model of the Spanish population
The aging of a population determines the characteristics of its economic environment and, according to the life-cycle hypothesis, it may affect the level of aggregate saving. Generally, the modeling of financial asset be...
Curriculum Management Modeling Based on Context-Sensitive Business Processes
This paper aims to propose an approach to curriculum management modeling in universities based on the fundamentals of business processes and with a special focus on context-sensitive information. The importance of the co...