Energy Market and Energy Finance

This Topic covers recent advances in energy market analysis and finance, exploring the interaction of energy assets, financial instruments, and alternative investments amid rising uncertainty, volatility, and structural transition. Articles address pricing, forecasting, risk management, market design, and financing challenges. A core theme of this Topic is energy price dynamics and forecasting, using nonlinear regressions, stochastic models, and option-implied measures to explain and predict oil prices and sector performance. Studies also advance derivatives and risk management, introducing new spread option formulas and using short-dated options to infer oil market risk preferences. This Topic examines cryptocurrencies-especially Bitcoin-as instruments interacting with energy and commodity markets. Research compares Bitcoin to traditional commodities as hedges and safe havens, revealing cross-market risk transmission and diversification benefits for energy portfolios. Additionally, it analyzes energy market structure and regulation, including electricity market design, market makers, and OTC market inefficiencies. Machine learning and large language models study electricity-carbon market coupling, offering climate policy and integration insights. Finally, energy finance issues are explored via the empirical cost of capital estimates in emerging and dollarized economies. Overall, this Topic offers a methodologically diverse, global perspective on energy markets and finance, providing valuable insights for academics, practitioners, and policymakers focused on risk management, investment, and sustainable energy transformation.