New Business Models in the Energy Sector
Science Journal of Energy Engineering
Volume 5, Issue 3, June 2017, Pages: 63-67
Received: Jun. 30, 2017; Accepted: Jul. 20, 2017; Published: Oct. 23, 2017
Views 1417      Downloads 69
Author
Maria Alejandra Caporale Madi, Department of Economic Theory, Institute of Economics, State University of Campinas, Campinas, Brazil
Article Tools
Follow on us
Abstract
After the 1970s, the reorganization of the markets at the global level has been overwhelmed by the financial logic of investment in a setting characterized by expansion of institutional investors. Within this framework, the private equity funds’ investment strategies turn out to focus on short-term profits. Besides, these funds have enhanced the expansion of new business models where the process of strategic disinvestment is part of the financial management. Considering this background, this paper addresses that the evolution of the current global business environment in the energy sector has been attached to the new financial and business dynamics where private-equity funds are relevant to apprehend the recent investment and disinvestment trends in renewables.
Keywords
Business Models, Energy Sector, Private Equity Funds, Renewables
To cite this article
Maria Alejandra Caporale Madi, New Business Models in the Energy Sector, Science Journal of Energy Engineering. Vol. 5, No. 3, 2017, pp. 63-67. doi: 10.11648/j.sjee.20170503.12
Copyright
Copyright © 2017 Authors retain the copyright of this article.
This article is an open access article distributed under the Creative Commons Attribution License (http://creativecommons.org/licenses/by/4.0/) which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
References
[1]
Crotty, J. (2002) The effects of increased product market competition and changes in financial markets on the performance of nonfinancial corporations in the neoliberal era’. Working Paper Series, 44. Political Economy Research Institute, University of Massachusetts Amherst.
[2]
Lazonick, W. and O´Sullivan, M. (2000) “Maximizing shareholder value: a new ideology for corporate governance”, Economy and Society, 29 (1).
[3]
Minsky, H. P. (1986) Stabilizing an unstable economy. New Haven: Yale University Press.
[4]
Gonçalves, J. R. B. and Madi, M. A. C. (2011) Private equity investment and labor: faceless capital and the challenges to trade unions in Brazil. In: M. Serrano, E. Xhafa and M. Fichter (Eds.) (2011) Trade unions and the global crisis: Labour´s visions, strategies and responses. Geneve: Intenational Labour Office.
[5]
Hickey, J. et al. (2007) Private Equity. Business Information Alert, 19 (3); Metrick, A. and Yasuda, A. (2007) The Economics of Private Equity Funds, Wharton School: University of Pennsylvania.
[6]
Appelbaum, E. and Batt, R. (2014) Private Equity at Work: When Wall Street Manages Main Street, United States: Russell Sage Foundation.
[7]
Tate, A. (2007) The Effect of Private Equity Takeovers on Corporate Social Responsibility. International Officer, Australian Council of Trade Unions. Retrieved from http://www.accsr.com.au/pdf/pet_speech_Alison_Tate.pdf; TUAC (2008). Pension Fund Investment in Private Equity. Report. Paris.
[8]
Dixon, H.; Cox, R. and Chancellor, E. (2007) “Conglomerate Comparisons – Will Private Equity Empires Parallel Predecessors of 1960s and Fall Out of Fashion Too?”, Wall St. Journal, January 2, p. C12.
[9]
Klier, D.; Welge, M and Harrigan, K. (2009) The Changing Face of Private Equity: How Modern Private Equity Firms Manage Investment Portfolios. Journal of Private Equity, 12 (4), Fall.
[10]
ITUC- CSI (2007) Labour and the Shifting Power Equation: Statement of Labour Leaders to the World Economic Forum Annual Meeting Davos, 24-28, January. Retrieved from http://www.ituc-csi.org/IMG/pdf/WEF_Statement_-_Labour_and_the_Shifting_Power_Equation_-_Rev_EN.pdf
[11]
Cullen, A. and James, S. (2007) Private equity and Business Information. Part 3: Business Information Services and Private equity: North American Involvement. Business Information Alert. Nov/Dec, 19 (10), pp. 1-4.
[12]
International Union of Food, Agricultural, Hotel, Restaurant, Catering, Tobacco and Allied Workers´ Association –IUF (2007) A Workers´ Guide to private Equity Buyouts. Geneve and IUF (2008) Private Equity Buyouts: A Trade Union View. Brussels.
[13]
International Union of Food, Agricultural, Hotel, Restaurant, Catering, Tobacco and Allied Workers´ Association –IUF (2007) A Workers´ Guide to private Equity Buyouts. Geneve.
[14]
Keynes, J. M. [1936 (1964)] The General Theory of Employment, Interest, and Money. New York: Harcourt Brace. Chapter 12, section VI.
[15]
Wheatley, J. (2010). Capital markets: Private equity funds explore the market. Retrieved from http://www.ft.com/cms/s/0/cbfe7ce6-571c-11df-aaff- 0144feab49a.html#axzz1ezwgqbFE
[16]
International Union of Food, Agricultural, Hotel, Restaurant, Catering, Tobacco and Allied Workers´ Association –IUF (2007) A Workers´ Guide to private Equity Buyouts. Geneve. p. 24.
[17]
Çelik, S. and Isaksson, M. (2013) “Institutional Investors as Owners: Who Are They and What Do They Do?”, OECD Corporate Governance Working Papers, 11, France: OECD Publishing. Retrieved from http://dx.doi.org/10.1787/5k3v1dvmfk42-en
[18]
Tannon, J. M. and Johnson, R. (2005) “Transatlantic Private Equity: Beyond a Trillion Dollar Force”, Journal of Private Equity, 8 (3), pp. 77-80.
[19]
Cressy, R.; Munari, F. and Malipiero, A. (2007) Creative destruction? UK Evidence that buyouts cut jobs to raise returns. Working Paper Series. Retrieved from http://ssrn.com/abstract=1030830; Aldatmaz, S. and Brown, G. W. (2013) “Does Private Equity Hurt or Help the Economy?”, Research Paper, Private equity research Consortium, Kenan-Flagler Business School, The University of North Carolina at Chapel Hill.
[20]
Bain & Company (2015) Global Private Equity Report 2015. U.S.A: Bain & Company, Inc. p. 2; Prequin (2015) Prequin Private Equity & Venture Capital Report. Retrieved from https://www.preqin.com/docs/reports/2015-Preqin-Global-Private-Equity-and-Venture-Capital-Report-Sample-Pages.pdf
[21]
Makovich, L. (2012). Putting Energy Back to Work. Retrieved from http://www3.weforum.org/docs/WEF_EN_EnergyEconomicGrowth_IndustryAgenda_2012.pdf; Chevalier. J. Energy and the Economy in Europe (2012) Retrieved from http://www3.weforum.org/docs/WEF_EN_EnergyEconomicGrowth_IndustryAgenda_2012.pdf; IEA (2015) World Energy Outlook. Retrieved from http://www.iea.org/publications/freepublications/publication/WEO2015SpecialReportonEnergyandClimateChange.pdf; Bain & Company (2015) Global Private Equity Report 2015. U.S.A: Bain &Company, Inc.
[22]
Bloomberg New Energy Finance (2017) Green technologies get boost from EU’s venture capital funds. Retrieved from https://about.bnef.com/blog/green-technologies-get-boost-from-eus-venture-capital-funds/
[23]
On global mitigation and adaption investment trends also see UNFCC (2016a) UNFCCC Standing Committee on Finance 2016. Biennial Assessment and Overview of Climate Finance Flows Report. Retrieved from http://unfccc.int/files/cooperation_and_support/financial_mechanism/standing_committee/application/pdf/2016_ba_technical_report.pdf
[24]
Mc Crone, A. (2016) If interest rates turn, clean energy will find it tougher. Bloomberg New Energy Finance. Retrieved from https://about.bnef.com/blog/mccrone-interest-rates-turn-clean-energy-will-find-tougher/
[25]
Minsky, H. P. (1986) Stabilizing an unstable economy. New Haven: Yale University Press.
[26]
Keynes, J. M. [1936 (1964)] The General Theory of Employment, Interest, and Money. New York: Harcourt Brace.
ADDRESS
Science Publishing Group
1 Rockefeller Plaza,
10th and 11th Floors,
New York, NY 10020
U.S.A.
Tel: (001)347-983-5186