Examining connections between the fourth industrial revolution and energy markets in College of Business Finance Laboratory at PMU
Understanding the synergy between fourth industrial revolution technologies and energy markets has never been more crucial as the world accelerates toward a sustainable future. Fund managers can utilize expected externalities related to technological energy usage and generation changes to inform their portfolio management strategies. The integration of machine learning may enhance investment strategies through model refinement, facilitate risk assessment related to energy transitions, and identify opportunities in emerging energy technologies.
Finance laboratory at PMU works closely in these lines. More recently a research project conceived by Professor Mabruk and his team seeks to unveil transformative insights that can drive innovative investment strategies while promoting cleaner energy solutions to tackle pressing global challenges, particularly relevant in asset management and investment choices.
The finance team at PMU is assessing the correlation among various fourth industrial revolutions such as artificial intelligence, blockchain, and robotics—and their relationship with energy markets. This pioneering study aims to provide empirical evidence of spillover effects, risk transmission, and market linkages, utilizing advanced quantitative research methods, particularly vector autoregressive models, to analyze these dynamics across different time horizons, both retrospective and prospective.
The potential impact of achieving sustainable energy for all through the application of modern technologies to convert fossil energy into cleaner alternatives, as proposed in this study, is inspiring. Furthermore, it provides insights into the relationship between technology and energy markets, ultimately contributing to effective climate change mitigation strategies through cleaner energy generation and utilization.
The key importance of research team`s work lies in its comprehensive analysis of the relationships between fourth industrial revolution indices and energy markets from an investor's perspective—a topic that has not been extensively explored in prior research. This study, unlike earlier efforts that often concentrated on discrete elements, seeks to evaluate the net impact that emerging technologies exert on energy markets and vice versa, providing a broader view of market processes. Furthermore, it distinguishes itself by employing sophisticated analytical tools and emphasizing predictive analysis, ensuring a thorough and reliable research outcome.
Dynamic total connectedness
As the research progresses, several significant breakthroughs may be anticipated, including establishing a credible model for forecasting market behaviour based on advancements in the energy sector. Such a model could help stakeholders uncover new investment opportunities sensitive to the interplay between technological advancements and energy price dynamics. The findings from this study have the potential to develop new frameworks that illustrate how investment capital can be directed toward inspiring sustainable energy solutions. Additionally, the results enhance the understanding of how investor attitudes influence changes in energy consumption and how sustainable practices can be effectively implemented within the energy industry.