Energy Derivatives: The Source of the Next Crisis?

The ICFAI Reader, Special Issue, ICFAI University Press, 2009

4 Pages Posted: 13 Oct 2009

See all articles by Chiara Oldani

Chiara Oldani

University of Viterbo Dept of Economics; Australian National University (ANU) - Centre for Applied Macroeconomic Analysis (CAMA); LUISS Guido Carli University

Date Written: January 2009

Abstract

World energy consumption is projected to expand by 50 percent from 2005 to 2030; the lack of sufficient investments to satisfy increasing demand negatively influences energy prices. Energy financial contracts, like derivatives, employed to hedge increasing costs and risks of the industry, exhibit amazing growth rates and returns in the absence of any control and monitoring. Two dangers should be addressed: mispricing and illiquidity of energy derivatives, because can have domino effects in the financial sector and in the entire economy.

Keywords: energy derivatives

JEL Classification: G15

Suggested Citation

Oldani, Chiara, Energy Derivatives: The Source of the Next Crisis? (January 2009). The ICFAI Reader, Special Issue, ICFAI University Press, 2009. Available at SSRN: https://ssrn.com/abstract=1486036

Chiara Oldani (Contact Author)

University of Viterbo Dept of Economics ( email )

Via Palmanova
Viterbo, 00110
Italy

Australian National University (ANU) - Centre for Applied Macroeconomic Analysis (CAMA) ( email )

ANU College of Business and Economics
Canberra, Australian Capital Territory 0200
Australia

LUISS Guido Carli University ( email )

viale Romania
Rome, Roma 00100
Italy

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