IDEAS home Printed from https://ideas.repec.org/a/eco/journ2/v15y2025i3id18702.html

Financial Dynamics of Energy, Coal, and Crude Oil Prices: Pathways to Sustainability

Author

Listed:
  • Goh, Thomas Sumarsan

    (Universitas Methodist Indonesia, Indonesia)

  • Erika, Erika

    (STIE Professional Management College Indonesia, Indonesia)

  • Henry, Henry

    (University of North Sumatra, Indonesia)

  • Albert, Albert

    (University of Gadjah Mada, Indonesia)

Abstract

This study examines the effect of coal and crude oil prices on Indonesia's Energy Stock Price Index (ESPI) from February 2021 to November 2024. Utilizing econometric tools such as the Augmented Dickey-Fuller (ADF) test, Johansen cointegration test, and Vector Error Correction Model (VECM). Findings indicate a significant link between coal, crude oil, and the energy sector, with coal exerting a strong and consistent influence on the ESPI, while crude oil's impact is less pronounced in the short term. The Granger causality test reveals a one-way causal relationship from coal and crude oil to energy, emphasizing the importance of past price movements in forecasting energy price fluctuations. The study concludes that coal largely drives the ESPI, while crude oil and energy prices also contribute to its variations. These results highlight the considerable impact of coal and crude oil price shocks on energy prices, providing important insights for investors and policymakers. Future research could broaden the scope by including factors like technological advancements, environmental policies, and global economic conditions for a deeper understanding of energy market dynamics.

Suggested Citation

  • Goh, Thomas Sumarsan & Erika, Erika & Henry, Henry & Albert, Albert, 2025. "Financial Dynamics of Energy, Coal, and Crude Oil Prices: Pathways to Sustainability," International Journal of Energy Economics and Policy, Econjournals, vol. 15(3), pages 130-137, April.
    • Handle: RePEc:eco:journ2:v:15:y:2025:i:3:id:18702
    DOI: 10.32479/ijeep.18702
    as

    Download full text from publisher

    File URL: https://econjournals.com/index.php/ijeep/article/download/18702/8738
    Download Restriction: no
    File URL: https://libkey.io/10.32479/ijeep.18702?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eco:journ2:v:15:y:2025:i:3:id:18702. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Monica Sinhat (email available below). General contact details of provider: https://econjournals.com/index.php/ijeep .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.