Document Type : Original Research


MSc Student, Finance, Petroleum University of Technology, Ahvaz, Iran


Energy exchange development is an integral part of economic development. The fact that extended provision and use of energy services is firmly associated with economic development leaves open how significant energy is as a causal factor in economic development, however; and on the other side energy sector development competes with other opportunities for scarce capital and opportunities for policy and institutional reform. In this paper we first give a brief conceptual introduction that seeks to depict the structure of the paper into three sections. We then show the importance of a well-functioning energy exchange as a key on the way of economic development. Next, we describe the most important pre-conditions for a well-developed energy exchange. Finally, we suggest some solutions that can accelerate the development process. The evidence shows regulations as the most important factor and government as the best supportive body in the development process.


African Development Bank Guidebook on African Commodity and Derivatives Exchanges, (2013).
Baha-Karan, M. and H. Kazdag ˘li (2011). “The Development of Energy Markets in Europe”, Springer-Verlag Berlin Heidelberg, 11-14.
Cheng, I. and W. Xiong (2013). “The Financialization of Commodity Markets”, Annual Review of Financial Economics.
Chevallier, J. and F. Ielpo (2013). “The Economics of Commodity Markets”, John Wiley & Sons Ltd.
De la Torre, A., Gozzi, J.C., and S.L. Schmukler (2005). “Capital Market Development Whither Latin America?”, University of Chicago Press.
Dudley, W. and R.G. Hubbard (2004). “How Capital Markets Enhance Economic Performance and Facilitate Job Creation”, Global Markets Institute, Goldman Sachs.
Ghosh, J. (2014). “Financial Investment in Commodities: Implications for Developing Countries and Global Financial Stability”.
Litan, R.E., Pomerleano, M. and V. Sundararajan (2003). “The Future of Domestic Capital Markets in Developing Countries”, The Brooking Institution.
Maximchook, N. (2013). “Developing Commodity Exchange Trading in the Single Economic Space”, Advancing Functional Economic Cooperation, 196-201.
REJNUŠ, O. (2006). “The Present Significance of Commodity Exchange Trading in the Conditions of the Current World Economy”, AGRIC. ECON, 497-501.
Rojas-Suarez, L. (2014). “Towards Strong and Stable Capital Markets in Emerging Market Economies”, Long-term finance: can emerging capital markets help?, vol. 75, pp 13-20.
Schneider, V. and A. Jäger (2003). "The Privatization of Infrastructures in the Theory of the State: An Empirical Overview and a Discussion of Competing Theoretical Explanations." On Creating Competition and Strategic Restructuring: Regulatory Reform in Public Utilities, Cheltenham: Edward Elgar.
United Nations (2009). “Development Impacts of Commodity Exchanges in Emerging Markets”, 6-37.
Wilson, R. (2012). “Capital Market Development in North Africa: Current Status and Future Potential”, AFDB.
Wyman, O. (2015). “Accelerating Emerging Capital Markets Development Corporate Bond Markets”, World Economic Forum.