This seminar will take place on May 8 at 15:30. The seminar will be in a hybrid format with:
- in-person session in the IST Alameda Campus, Department of Engineering and Management's Meeting Room
- online, via Zoom https://zoom.us/j/99299309409?pwd=PqibDTjEsib3Tdm5YF0EtsVkqOsYCd.1
Our seminars are free to attend and open to everyone. Please share with whomever may be interested.
Summary
The purpose of this study is to advance knowledge of how HVO affects oil firms' tactics, as they have been investing more in biofuels to lessen their reliance on fossil fuels. Since HVO is a biofuel that has the potential to replace traditional diesel and is in line with the energy transition's goals as well as the EU's, this topic is especially pertinent. The research's methodology is a quantitative study that uses secondary data from financial databases and European legislation in a descriptive and explanatory approach. This study aims to address the following research issues in light of the context: Does regulatory pressure affect investment in HVO? Is there a significant difference between the profitability of companies that invest and do not invest in HVO? Do companies with better ESG performance invest more in HVO? Is investment in HVO associated with a higher market valuation? The inclusion of HVO as the primary variable for financial analysis, which has not received much attention in the literature, is what makes this study unique. The results demonstrated that investment in HVO is associated with companies with better ESG performance, higher market capitalization, and greater regulation of biodiesel. On the other hand, investment in HVO is also associated with lower corporate profitability (ROA), possibly explained by the high costs of entry and technological transition. Based on the analysis of the results of this study, it will serve as a basis for future research and should be taken into consideration by managers and policymakers when making strategic decisions regarding energy transition policies and the adoption of alternative fuel sources, especially in the transport sector.
Speaker's bio
João Estevão is a researcher in Management and Finance at CEGIST whose work focuses on sustainability, the energy transition, and the links between policy and firm/market performance. He holds a European PhD in Management from ISEG – Lisbon School of Economics & Management, University of Lisbon (2022), following an MSc in Finance at ISEG. His research examines energy markets and climate policy (including the Paris Agreement), renewable energy and SDG-related outcomes, and transition technologies such as carbon capture and storage (CCS), using quantitative and evidence-synthesis approaches (panel data, time-series, fsQCA, and bibliometric analysis). He has published in international peer-reviewed journals including Journal of Business Research, Technological Forecasting & Social Change, Journal of Cleaner Production, and The Journal of Risk Finance. He is Assistant Professor at Instituto Superior Técnico (since 2025), and he also contributes through editorial and peer-review service.