MOSCOW, July 12Additional investments (hedging) in the green energy market will be the most reliable way to reduce the risks of major investments in the oil industry, UrFU scientists believe. According to them, the analysis proved that this distribution of investments contributes to the growth of profits from both types of energy carriers. The results of the study were published in Energy Economics.
For every investor, there is a risk that the stocks, bonds or currencies purchased by him may fall in price. One of the ways to insure yourself against financial losses is called hedging (from the English. hedge — «fence»), explained at the Ural Federal University. the first President of Russia B.N. Yeltsin (UrFU).
< /span>
The essence of this protective mechanism is the distribution of investments between two opposite products. At the same time, one is the main one, with the highest expected income, and the other is secondary, more stable, in order to compensate for possible losses if the value of the main assets falls, the experts explained.
In Russia, hedging is especially often used in relation to assets in the energy market, since the energy industry is one of the most profitable in the country. At the same time, investors did not have a clear understanding of the relationship between oil markets and green energy, that is, obtained without harming the environment using renewable energy sources (RES), the university drew attention.
“According to our study of the assets of various companies from 2014 to 2021, it was found that the growth of the oil stock market contributes to a moderate increase in the price of green stocks and bonds. However, a fall in oil prices will not lead to a depreciation of investments in alternative energy enterprises,” – said Kazi Sohag, Associate Professor of the Department of Economics of UrFU.
However The benefits of investing in the green energy sector are not particularly profitable, and therefore the main financial resource is rarely invested in it. But the dynamics of this market in relation to oil shows that green investments are much more reliable, the researcher continued.
“Many of our colleagues believed that the volatility of the oil and green fuel markets offset each other: when prices rise in one market, they fall in the other. However, in reality, such a correlation has never been observed. And green assets can play the role of reliable safe-haven assets,” — Kazi emphasized. data->
The scientist believes that the patterns found can be applied not only to domestic, but also to foreign markets.
According to university specialists, they used modern and universal methods of analysis economic data that will also be effective for monitoring global trends.
The study was conducted by the Ural Federal University with the participation of specialists from the Department of Economics and Finance of the University of New Orleans (USA).
UrFU – participant of the Russian State University Support Program «Priority 2030».