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Energy Market Financialization and Its Policy Implications

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The Handbook of Energy Policy

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Abstract

This chapter covers the basic conceptual issues of energy market financialization, its background, its development, and its impacts on energy markets. The trend of financialization has clearly brought new aspects to the energy markets in terms of pricing mechanisms and risks, which can have profound impacts on energy sectors. When the traditional driving factors, such as those from the demand and supply sides, mix with financial factors, the standard policy framework in the energy sector needs to be adjusted. Through reviewing the most recent literature and discussing relevant issues, this chapter aims to bring forward a collection of empirical evidence, a broad discussion of impacts, and, more importantly, the general implications for policymakers around the world. Overall, energy market financialization has already made great impacts to the traditional energy-pricing systems and energy risk management frameworks. Understanding the underlying mechanisms and taking financialization into energy policy frameworks have great meanings.

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Authors and Affiliations

  1. Research Institute of Economics and Management, Southwestern University of Finance and Economics, Chengdu, China

    Fei Wu & Dayong Zhang

  2. Institutes of Science and Development, Chinese Academy of Sciences, Beijing, China

    Qiang Ji

Authors
  1. Fei Wu
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  2. Dayong Zhang
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  3. Qiang Ji
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Correspondence to Dayong Zhang .

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Editors and Affiliations

  1. School of Global Studies, Tokai University, Hiratsuka, Kanagawa, Japan

    Farhad Taghizadeh-Hesary

  2. Research Institute of Economics and Management, Southwestern University of Finance and Economics, Chengdu, China

    Dayong Zhang

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Wu, F., Zhang, D., Ji, Q. (2023). Energy Market Financialization and Its Policy Implications. In: Taghizadeh-Hesary, F., Zhang, D. (eds) The Handbook of Energy Policy. Springer, Singapore. https://doi.org/10.1007/978-981-19-6778-8_17

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