Skip to main content
SpringerLink
Log in

Modelling the Impact of Energy-Saving Technological Changes on the Market Capitalization of Companies

  • Chapter
  • First Online:
Systems, Decision and Control in Energy III

Part of the book series: Studies in Systems, Decision and Control ((SSDC,volume 399))

Abstract

The authors performed modelling of the impact of energy-saving technological changes on the market capitalization of companies. The regularities of the influence of energy-saving technological changes on the financial condition of enterprises are considered. Partial mechanisms of such influence are allocated. Factors influencing the market value of enterprises, such as the size and degree of fluctuations in the profitability of their activities, the volume of these activities, and the level of financial stability of enterprises are identified. Regarding the factors directly affecting the market capitalization of enterprises, they include the expected amount of profit of enterprises and the level of risk of their activities. In order to assess the market value of companies’ equity, it is proposed to capitalize their net profit at a risk-free rate with a further decrease in the result obtained in proportion to the level of riskiness of companies. An evaluation indicator of this level has been constructed, which has a transparent economic meaning and provides a reasonable assessment of the degree of fluctuation of expected profits of companies. A method for decomposing the growth of market capitalization of companies due to introducing energy-saving technologies is proposed. According to the analysis of a sample of one hundred Ukrainian companies, a significant impact of introducing technologies to reduce natural gas consumption on the financial condition and market capitalization of these companies is established. It is established that with the increase in the relative level of investment in introducing energy-saving technologies at the surveyed enterprises there was an increase in the growth rate of their market capitalization. It was also found that introducing energy-saving technologies at enterprises mainly led to the growth of market capitalization of the studied companies. The use in the practice of companies the methodological principles of modelling the impact of energy-saving technological changes on the market capitalization of enterprises, proposed by the authors, will increase the validity of decisions on implementing projects of such changes.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Log in via an institution
Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 129.00
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD 169.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info
Hardcover Book
USD 169.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

References

  1. Van Roy, V., Vértesy, D., Vivarelli, M.: Technology and employment: mass unemployment or job creation? Empirical evidence from European patenting firms. Res. Policy 47, 1762–1776 (2018). https://doi.org/10.1016/j.respol.2018.06.008

    Article  Google Scholar 

  2. Yemelyanov, O., Symak, A., Petrushka, T., Lesyk, R., Lesyk, L.: Assessment of the technological changes impact on the sustainability of state security system of Ukraine. Sustainability 10, 1186 (2018). https://doi.org/10.3390/su10041186

    Article  Google Scholar 

  3. Soylu, Ö.B., Çakmak, I., Okur, F.: Economic growth and unemployment issue: panel data analysis in Eastern European Countries. J. Int. Stud. 11, 93–107 (2018)

    Google Scholar 

  4. Kahia, M., Safouane BenAïssa, M., Lanouar, C.: Renewable and non-renewable energy use - economic growth nexus: the case of MENA net oil importing countries. Renew. Sustain. Energy Rev. 71, 127–140 (2017). https://doi.org/10.1016/j.rser.2017.01.010

    Article  Google Scholar 

  5. Alvarado, R., Deng, Q., Tillaguango, B., Méndez, P., Bravo, D., Chamba, J., Alvarado-Lopez, M., Ahmad, M.: Do economic development and human capital decrease non-renewable energy consumption? Evidence for OECD countries». Energy 215(B), 119–147 (2020). https://doi.org/10.1016/j.energy.2020.119147

  6. Chalvatzis, K.J., Ioannidis, A.: Energy supply security in the EU: benchmarking diversity and dependence of primary energy. Appl. Energy 207, 465–476 (2017). https://doi.org/10.1016/j.apenergy.2017.07.010

    Article  Google Scholar 

  7. Maio, F.D., Rem, P.C., Baldé, K., Polder, M.: Measuring resource efficiency and circular economy: a market value approach. Resour. Conserv. Recycl. 122, 163–171 (2017). https://doi.org/10.1016/j.resconrec.2017.02.009

    Article  Google Scholar 

  8. Nabavi-Pelesaraei, A., Bayat, R., Hosseinzadeh-Bandbafha, H., Afrasyabi, H., Chau, K.-W.: Modeling of energy consumption and environmental life cycle assessment for incineration and landfill systems of municipal solid waste management - A case study in Tehran Metropolis of Iran. J. Clean. Prod. 148, 427–440 (2017). https://doi.org/10.1016/j.jclepro.2017.01.172

    Article  Google Scholar 

  9. Liu, J., Cheng, Z., Zhang, H.: Does industrial agglomeration promote the increase of energy efficiency in China? J. Clean. Prod. 164, 30–37 (2017). https://doi.org/10.1016/j.jclepro.2017.06.179

    Article  Google Scholar 

  10. Zhang, Z., Lis, M.: Modeling green energy development based on sustainable economic growth in China. Sustainability 12, 1368 (2020). https://doi.org/10.3390/su12041368

    Article  Google Scholar 

  11. Zaharia, A., Diaconeasa, M.C., Brad, L., Lădaru, G.-R., Ioanăș, C.: Factors Influencing energy consumption in the context of sustainable development. Sustainability 11(15), 4147 (2019). https://doi.org/10.3390/su11154147

    Article  Google Scholar 

  12. Richler, J.: Barriers to energy-efficiency . Nat. Energy 3(5), 356–356 (2018)

    Article  Google Scholar 

  13. Chai, K.-H., Yeo, C.: Overcoming energy efficiency barriers through systems approach—A conceptual framework. Energy Policy 46, 460–472 (2012)

    Article  Google Scholar 

  14. Bhowmik, C., Bhowmik, S., Ray, A., Pandey, K.M.: Optimal green energy planning for sustainable development: a review. Renew. Sustain. Energy Rev. 71, 796–813 (2017). https://doi.org/10.1016/j.rser.2016.12.105

  15. Salahuddin, M., Alam, K.: Information and communication technology, electricity consumption and economic growth in OECD countries: a panel data analysis. Int. J. Electr. Power Energy Syst. 76, 185–193 (2016)

    Article  Google Scholar 

  16. Fadiran, G., Adebusuyi, A.T., Fadiran, D.: Natural gas consumption and economic growth: evidence from selected natural gas vehicle markets in Europe. Energy 169, 467–477 (2019). https://doi.org/10.1016/j.energy.2018.12.040

  17. Solarin, S.A., Ozturk, I.: The relationship between natural gas consumption and economic growth in OPEC members. Renew. Sustain. Energy Rev. 58, 1348–1356 (2016). https://doi.org/10.1016/j.rser.2015.12.278

  18. Menegaki, A.N., Tugcu, C.T.: Energy consumption and Sustainable Economic Welfare in G7 countries; A comparison with the conventional nexus. Renew. Sustain. Energy Rev. 69, 892–901 (2017). https://doi.org/10.1016/j.rser.2016.11.133

  19. Yemelyanov, O., Symak, A., Petrushka, T., Zahoretska, O., Kusiy, M., Lesyk, R., Lesyk, L.: Changes in energy consumption, economic growth and aspirations for energy independence: sectoral analysis of uses of natural gas in Ukrainian economy. Energies 12, 4724 (2019). https://doi.org/10.3390/en12244724

    Article  Google Scholar 

  20. Zhang, J., Lin Lawell, C.-Y.C.: The macroeconomic rebound effect in China. Energy Econ. 67, 202–212 (2017). https://doi.org/10.1016/j.eneco.2017.08.020

  21. Bayar, Y., Gavriletea, M.D.: Energy efficiency, renewable energy, economic growth: evidence from emerging market economies. Qual. Quant. 53, 2221–2234 (2019). https://doi.org/10.1007/s11135-019-00867-9

    Article  Google Scholar 

  22. Orea, L., Llorca, M., Filippini, M.: A new approach to measuring the rebound effect associated to energy efficiency improvements: an application to the US residential energy demand. Energy Econ. 49, 599–609 (2015). https://doi.org/10.1016/j.eneco.2015.03.016

  23. Bhattacharya, M., Paramati, S.R., Ozturk, I., Bhattacharya, S.: The effect of renewable energy consumption on economic growth: evidence from top 38 countries. Appl. Energy 162, 733–741 (2016). https://doi.org/10.1016/j.apenergy.2015.10.104

  24. Alper, A., Oguz, O.: The role of renewable energy consumption in economic growth: Evidence from asymmetric causality. Renew. Sustain. Energy Rev. 60, 953–959 (2016). https://doi.org/10.1016/j.rser.2016.01.123

  25. Koçak, E., Şarkgüneşi, A.: The renewable energy and economic growth nexus in Black Sea and Balkan countries. Energy Policy 100, 51–57 (2017). https://doi.org/10.1016/j.enpol.2016.10.007.

  26. Kostka, G., Moslener, U., Andreas, J.: Barriers to increasing energy efficiency: evidence from small-and medium-sized enterprises in China. J. Clean. Prod. 57, 59–68 (2013). https://doi.org/10.1016/j.jclepro.2013.06.025

    Article  Google Scholar 

  27. Lesinskyi, V., Yemelyanov, O., Zarytska, O., Symak, A., Petrushka, T.: Development of a toolkit for assessing and overcoming barriers to the implementation of energy saving projects. Eastern-Euro. J. Enterprise Technol. 5(3(107)), 24–38 (2020). https://doi.org/10.15587/1729-4061.2020.214997

  28. Zhang, Z., Jin, X., Yang, Q., Zhang, Y.: An empirical study on the institutional factors of energy conservation and emissions reduction: evidence from listed companies in China. Energy Policy 57, 36–42 (2013). https://doi.org/10.1016/j.enpol.2012.07.011

  29. Yemelyanov, O., Petrushka, T., Symak, A., Trevoho, O., Turylo, A., Kurylo, O., Danchak, L., Symak, D., Lesyk, L.: Microcredits for sustainable development of small Ukrainian enterprises: efficiency, accessibility, and government contribution. Sustainability 12(15), 6184 (2020). https://doi.org/10.3390/su12156184

    Article  Google Scholar 

  30. Prashar, A.: Towards sustainable development in industrial small and medium-sized enterprises: an energy sustainability approach. J. Clean. Prod. 235, 977–996 (2019). https://doi.org/10.1016/j.jclepro.2019.07.045

    Article  Google Scholar 

  31. Zhang, D., Li, M., Ji, X., Wu, J., Dong, Y.: Revealing potential of energy-saving behind emission reduction: a DEA-based empirical study. Manag. Environ. Qual. 30(4), 714–730 (2019). https://doi.org/10.1108/MEQ-07-2018-0125

    Article  Google Scholar 

  32. Chuang, S.P., Huang, S.J.: The effect of environmental corporate social responsibility on environmental performance and business competitiveness: the mediation of green information technology capital. J. Bus. Ethics. 150, 991–1009 (2018). https://doi.org/10.1007/s10551-016-3167-x

    Article  Google Scholar 

  33. Lesinskyi, V., Yemelyanov, O., Zarytska, O., Symak, A., Koleshchuk, O.: Substantiation of projects that account for risk in the resource-saving technological changes at enterprises. Eastern-Euro. J. Enterprise Technol. 6(1(96)), 6–16 (2018). https://doi.org/10.15587/1729-4061.2018.149942.

  34. Yemelyanov, O., Symak, A., Petrushka, T., Lesyk, R., Lesyk, L.: Evaluation of the adaptability of the Ukrainian economy to changes in prices for energy carriers and to energy market risks. Energies 11, 3529 (2018). https://doi.org/10.3390/en11123529

    Article  Google Scholar 

  35. Ippolitova, I.Y., Storozhenko, K.S.: Formation of the organizational-economic mechanism of energy saving at the enterprise. Global Natl. Prob. Econ. 8, 406–411 (2015)

    Google Scholar 

  36. Boiarko, I, Paskevicius, A.: Evaluation of the market value of the enterprise with consideration of exogenous factors. Bus. Ethics Leadership 1(3), 75–83 (2017). https://doi.org/10.21272/bel.1(3).75-83.2017

  37. Kholodilin, K., Mense, A., Michelsen, C.: The market value of energy efficiency in buildings and the mode of tenure. Urban Stud. 54(14) (2016). https://doi.org/10.1177/0042098016669464

Download references

Author information

Authors and Affiliations

  1. Lviv Polytechnic National University, Lviv, Ukraine

    Olexandr Yu. Yemelyanov, Tetyana O. Petrushka, Anastasiya V. Symak, Liliia I. Lesyk & Oksana B. Musiiovska

Authors
  1. Olexandr Yu. Yemelyanov
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Tetyana O. Petrushka
    View author publications

    You can also search for this author in PubMed Google Scholar

  3. Anastasiya V. Symak
    View author publications

    You can also search for this author in PubMed Google Scholar

  4. Liliia I. Lesyk
    View author publications

    You can also search for this author in PubMed Google Scholar

  5. Oksana B. Musiiovska
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Oksana B. Musiiovska .

Editor information

Editors and Affiliations

  1. Institute of General Energy, National Academy of Sciences of Ukraine, Kyiv, Ukraine

    Artur Zaporozhets

Rights and permissions

Reprints and permissions

Copyright information

© 2022 The Author(s), under exclusive license to Springer Nature Switzerland AG

About this chapter

Check for updates. Verify currency and authenticity via CrossMark

Cite this chapter

Yemelyanov, O.Y., Petrushka, T.O., Symak, A.V., Lesyk, L.I., Musiiovska, O.B. (2022). Modelling the Impact of Energy-Saving Technological Changes on the Market Capitalization of Companies. In: Zaporozhets, A. (eds) Systems, Decision and Control in Energy III. Studies in Systems, Decision and Control, vol 399. Springer, Cham. https://doi.org/10.1007/978-3-030-87675-3_5

Download citation

  • DOI: https://doi.org/10.1007/978-3-030-87675-3_5

  • Published:

  • Publisher Name: Springer, Cham

  • Print ISBN: 978-3-030-87674-6

  • Online ISBN: 978-3-030-87675-3

  • eBook Packages: Intelligent Technologies and Robotics

Publish with us

Policies and ethics

Search

Navigation