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Assessing Business Risks of Natural Gas Trading Companies: Evidence from GET Baltic

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  • Mangirdas Morkunas

    () (Faculty of Economics and Business, Mykolas Romeris University, Ateities str. 20, Vilnius 08303, Lithuania)

  • Gintaras Cernius

    (Faculty of Economics and Business, Mykolas Romeris University, Ateities str. 20, Vilnius 08303, Lithuania)

  • Gintare Giriuniene

    (Faculty of Economics and Business, Mykolas Romeris University, Ateities str. 20, Vilnius 08303, Lithuania)

Abstract

The aim of this research is to distinguish business risks that affect natural gas trading companies operating in the liberalized natural gas market and to assess them according to the potential impact on the aforementioned gas trading companies. To achieve this, a study of international scientific literature and empirical research was conducted, as well as the methods of expert survey, Analytical Hierarchy Process with different measurement scales and logical investigation. The research of the business risks of natural gas trading companies reflected that natural gas trading companies in the liberalized market distinguish in significantly different business risks’ portfolios from those that operate under monopoly conditions. It was also found that it is difficult to evaluate the business risks’ importance for the natural gas trading companies acting in liberalized markets because they characterize in a hierarchical structure, which means that they are prone to cascading effects.

Suggested Citation

  • Mangirdas Morkunas & Gintaras Cernius & Gintare Giriuniene, 2019. "Assessing Business Risks of Natural Gas Trading Companies: Evidence from GET Baltic," Energies, MDPI, Open Access Journal, vol. 12(14), pages 1-14, July.
  • Handle: RePEc:gam:jeners:v:12:y:2019:i:14:p:2647-:d:247240
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    References listed on IDEAS

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    More about this item

    Keywords

    business risks; gas trading companies; liberalized energy market; analytical hierarchy process (AHP);

    JEL classification:

    • Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics
    • Q0 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General
    • Q4 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy
    • Q40 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - General
    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices
    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy
    • Q47 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy Forecasting
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy
    • Q49 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Other

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