ISETS Working Papers
ISETS Working paper No. 21-0002
A review of the literature on energy finance
Dayong Zhang and Qiang Ji
Abstract: This paper surveys the recent development in energy finance, a booming inter-disciplinary subject of research. By looking back to the history of its development, we aim to clarify the conceptual issues and try to summarize the current research streams of this subject. The survey starts from financialization in energy markets, making use of the most recent empirical evidence and theoretical arguments to revisit the relationship between energy and financial markets. Corporate finance issues in energy sector are another main stream of research, which is based on the assumption that energy firms are different. A new direction of research is on green finance and investment, mainly related to financing, investment, and governance in energy transition process. Through the survey, we show that energy finance is a promising research subject and there are many exciting topics worth further investigation.
