Recently, Deng Jing's research team from the School of Economics and Management achieved significant advancements in risk governance within the fossil energy market. Their study, titled "Extreme Risk Contagions among Fossil Energy Companies in China: Insights from a Multilayer Dynamic Network Analysis," was published in the prestigious journal Energy (IF=9.0).

Since the severity and frequency of extreme events have seriously threatened the stability of fossil energy markets, this paper conducts multilayer dynamic network analysis to demonstrate the evolution of the entire market structure during extreme events. Based on the data of 64 Chinese energy firms ranging from March 2018 to February 2023, this paper examines the sectoral discrepancies, and identifies systemically important companies during different crises. The results indicate that the risk transmission mechanisms among fossil energy markets are different induced by the two crises, namely the COVID-19 pandemic and the Russia–Ukraine conflict. Specifically, the COVID-19 has rendered greater influence on the oil and gas industry, while the Russia–Ukraine conflict has brought instability to the coal industry. Additionally, the heterogeneous effects of these events on individual energy firms are identified, and the results suggest that both small and large firms have played prominent roles in risk transmission.

Multilayer dynamic network during the COVID-19 pandemic. Upper layer: pre-COVID-19; middle layer: during COVID-19; lower layer: post-COVID-19.

Multilayer dynamic network during the Russia-Ukraine conflict. Upper layer: post-COVID-19 (before the Russia-Ukraine conflict); lower layer: the Russia-Ukraine conflict periods.

The study aims to provide insights and references for maintaining the stability of China's fossil energy market. Deng Jing from the School of Economics and Management is the lead author of the paper, with Xing Xiaoyun serving as the corresponding author. Xu Zihan, a 2024 graduate from the School of Economics and Management who is now a Ph.D. student at the School of Finance, University of International Business and Economics, also contributed as a co-author. Beijing Forestry University is the affiliation of the first author. This work was supported by the Ministry of Education's Humanities and Social Science project (23YJA790014).

Paper link: https://doi.org/10.1016/j.energy.2024.132345

Written by Deng Jing
Translated and edited by Song He
Reviewed by Yu Yangyang