scholarly journals Investigating the Asymmetry Effects of Crude Oil Price on Renewable Energy Consumption in the United States

2021 ◽  
Author(s):  
Pritish Sahu ◽  
Sakiru Adebola Solarin ◽  
Usama Al-mulali ◽  
Ilhan Ozturk
Keyword(s):  
Renewable Energy ◽  
Crude Oil ◽  
Energy Use ◽  
Oil Prices ◽  
The United States ◽  
Oil Price ◽  
Crude Oil Price ◽  
Renewable Energy Consumption ◽  
Long Run ◽  
Short Run

Abstract The reduction in oil prices might make crude oil a cheaper alternative to renewable energy. Given this, the present paper examines the effect of fluctuation of oil prices on the use of renewable energy in the United States during the period 1970–2019. We constructed two nonlinear Autoregressive Distributed Lag (NARDL) models to examine the effect of the positive and negative oil prices shocks on the use of renewable energy in the US. The renewable energy consumption is taken as the dependent variable and GDP, Brent crude prices, population density, trade openness and price index as independent variables. The result revealed that the rise in crude oil price, GDP and population density will increase renewable energy use in the short run and in the long run as well. Moreover, the study finds that any decrease in oil prices will decrease renewable energy use in the short run and its effect will eventually diminish in the long run.

scholarly journals Do High Oil Prices Obstruct the Transition to Renewable Energy Consumption?

2020 ◽  
Vol 12 (11) ◽  
pp. 4689 ◽  
Author(s):  
Shahriyar Mukhtarov ◽  
Jeyhun I. Mikayilov ◽  
Sugra Humbatova ◽  
Vugar Muradov
Keyword(s):  
Economic Growth ◽  
Renewable Energy ◽  
Energy Consumption ◽  
Negative Impact ◽  
Oil Prices ◽  
Oil Price ◽  
Renewable Energy Consumption ◽  
Long Run ◽  
Carbon Dioxide Co2 ◽  
The Impact

The study analyzes the impact of economic growth, carbon dioxide (CO2) emissions, and oil price on renewable energy consumption in Azerbaijan for the data spanning from 1992 to 2015, utilizing structural time series modeling approach. Estimation results reveal that there is a long-run positive and statistically significant effect of economic growth on renewable energy consumption and a negative impact of oil price in the case of Azerbaijan, for the studied period. The negative impact of oil price on renewable energy consumption can be seen as an indication of comfort brought by the environment of higher oil prices, which delays the transition from conventional energy sources to renewable energy consumption for the studied country case. Also, we find that the effect of CO2 on renewable energy consumption is negative but statistically insignificant. The results of this article might be beneficial for policymakers and support the current literature for further research for oil-rich developing countries.

scholarly journals Econometric Analysis of Determinants of Real Effective Exchange Rate in Nigeria (1960-2015)

2016 ◽  
Vol 9 (1) ◽  
pp. 62-80 ◽  
Author(s):  
Waheed Ibrahim
Keyword(s):  
Exchange Rate ◽  
Crude Oil ◽  
Terms Of Trade ◽  
Oil Price ◽  
Real Effective Exchange Rate ◽  
Crude Oil Price ◽  
Long Run ◽  
Effective Exchange ◽  
Short Run ◽  
Effective Exchange Rate

Abstract This study investigates the determinants of real effective exchange rate in Nigeria for the period between 1960 and 2015 using the vector error correction mechanism to separate long run from the short run fundamentals. The findings from the regression estimates revealed that; terms of trade, openness of the economy, net capital inflow and total government expenditure were the major long run determinants of real effective exchange rate in the country while variables such as; broad money supply (M2), nominal effective exchange rate, structural adjustment program dummy, June 12 crisis and change to civil rule dummies were revealed as the major short run determinants of exchange rate in Nigeria between 1960 and 2015. The study concludes by recommending that since the major variable of terms of trade (crude oil price) is out of the government control, the effect of shocks due to the fluctuations of crude oil price can be minimized by shifting the economy from a mono-product nation and diversify the economy to increase productive capacity. Also, the change to civil rule dummy used in the study revealed that the system has not been friendly with the country’s real effective exchange rate, thus needing to review the system and bringing out all negative activities there in to ensure Nigeria’s currency appreciation. Guided openness is also suggested to avert the danger that unguided trade liberalization may bring into the country.

scholarly journals Impact of FDI inflow, crude oil prices, and economic growth on CO2 emission in Tunisia: Symmetric and asymmetric analysis through ARDL and NARDL approach

2021 ◽  
Vol 12 (1) ◽  
pp. 1-13
Author(s):  
Tarek Ghazouani
Keyword(s):  
Economic Growth ◽  
Crude Oil ◽  
Carbon Emissions ◽  
Co2 Emission ◽  
Oil Prices ◽  
Oil Price ◽  
Crude Oil Price ◽  
Fdi Inflows ◽  
Crude Oil Prices ◽  
Long Run

This study explores the symmetric and asymmetric impact of real GDP per capita, FDI inflow, and crude oil price on CO2 emission in Tunisia for the 1972–2016 period. Using the cointegration tests, namely ARDL and NARDL bound test, the results show that the variables are associated in a long run relationship. Long run estimates from both approach confirms the validity of ECK hypothesis for Tunisia. Symmetric analysis reveals that economic growth and the price of crude oil adversely affect the environment, in contrast to FDI inflows that reduce CO2 emissions in the long run. Whereas the asymmetric analysis show that increase in crude oil price harm the environment and decrease in crude oil price have positive repercussions on the environment. The causality analysis suggests that a bilateral link exists between economic growth and carbon emissions and a one-way causality ranges from FDI inflows and crude oil prices to carbon emissions. Thus, some policy recommendations have been formulated to help Tunisia reduce carbon emissions and support economic development.

scholarly journals Oil price Fluctuation, Gold Returns and Inflationary Pressure: An Empirical Analysis Using Cointegration Approach

2019 ◽  
Vol 6 (2) ◽  
pp. 71 ◽  
Author(s):  
Hanan Naser
Keyword(s):  
Crude Oil ◽  
Oil Prices ◽  
Oil Price ◽  
Price Fluctuation ◽  
Inflationary Pressure ◽  
Crude Oil Prices ◽  
Long Run ◽  
Short Run ◽  
The Impact ◽  
Oil Price Fluctuation

Given that oil and gold prices are the major representative for commodity market, they both play a crucial role in determining the level of consumption, industrial production and investment due to the direct effect by the changes in their prices. In addition, both oil and gold prices have inflationary pressure which has a direct impact on countries economic growth. Therefore, it is of crucial practical significance to analyze their cointrgration relationships to understand the co-movement of both prices. To do so, this paper aims to examine the impact of oil price fluctuation on gold prices taking into account the inflationary pressure in the United States (US). Using monthly data from April, 1986 to September, 2018, Johansen multivariate cointegration test procedure and vector error correction model (VECM) have been employed to examine the long-run relationship between the variables in the US. The key findings suggest that there is a significant positive long run relationship between crude oil prices, gold prices and inflation. In the short run, the impact of any changes in crude oil prices will have a delayed effect on the prices of gold, while the impact of inflation in not different from zero. In addition, both gold prices and inflation are found to have no impact on gold prices in the short run. The findings of this research are important for investors, portfolio managers, corporate houses, crude oil traders, the government and policy makers.

scholarly journals Effects of International Crude Oil Prices on Energy Consumption in China

Energies ◽  
2020 ◽  
Vol 13 (15) ◽  
pp. 3891 ◽  
Author(s):  
Gaolu Zou ◽  
Kwong Wing Chau
Keyword(s):  
Energy Consumption ◽  
Crude Oil ◽  
Price Elasticity ◽  
Oil Prices ◽  
Oil Price ◽  
Crude Oil Price ◽  
The Real ◽  
Crude Oil Prices ◽  
Long Run ◽  
Oil Demand

This study aims to test the effects of changes in international crude oil prices on changes in crude oil and hydropower use from 1965 to 2016. We suggest a cointegration relationship between the consumption of coal, crude oil, and hydropower and the real crude oil price. The real price is weakly exogenous for the long-run relationship and has impacted energy consumption accordingly. The long-run crude oil price elasticity of oil use is 0.460. Our estimate suggests a positive oil price–oil use relationship in China, which is dramatically different from many previous studies but is consistent with a few past studies. The growth in external oil prices may lead to a long-run increase in hydropower use in China, with a long-run price elasticity of 0.242. The long-run crude oil price elasticity of coal use is −0.930. Hence, increased oil and hydropower use could make up the energy supply–demand gap left over by the decreased coal use. Strictly planned domestic fuel prices and rapidly growing family incomes should diminish the negative effect of external oil prices on domestic crude oil demand. In the long run, given a strictly managed energy price, the growth in external oil prices is not likely to noticeably restrain the domestic oil demand or lead to a dramatic increase in coal use. We suggest that the large-scale development and utilization of hydropower may be inappropriate. Coal utilization policies must be reviewed. The appropriate increase in clean coal consumption could reduce the consumption of crude oil and hydropower; meanwhile, carbon emissions will not increase.

scholarly journals Managing a Country’s Sustainabilty - The Case of Malaysia and Indonesia Public Debt

2019 ◽  
Vol 10 (5) ◽  
pp. 19
Author(s):  
Abdul Razak Abdul Hadi ◽  
Tasya Aspiranti ◽  
Tahir Iqbal ◽  
Raja Rehan
Keyword(s):  
Crude Oil ◽  
Interest Rates ◽  
Oil Price ◽  
Crude Oil Price ◽  
Ardl Model ◽  
Explanatory Variables ◽  
Indonesian Government ◽  
Distributed Lag ◽  
Long Run ◽  
Short Run

The study is driven by the motivation to examine the effects of policy interest rates and crude oil prices on Malaysian and Indonesian government borrowing within the framework of Keynesian macroeconomic theory. Using Autoregressive Distributed Lag (ARDL) model as an estimation tool over the observed period from March 2013 till June 2018, the study uncovers the absence of long-term equilibrium relationship between government borrowings and the two explanatory variables. However, based upon Error Correction Representation via ARDL model, there is a significant long-run relation (at 10% level) between Indonesian government borrowing and the two tested variables. Interestingly, this is not the case for Malaysia over both long-run and short-run relations. With respect to the short-run dynamics, there is a unidirectional causality running from crude oil price to Indonesian government borrowing. It seems crude oil price plays a significant role in influencing Indonesian government’s choice of public financing. As expected, the short-term policy rate has no significant bearing on government borrowings at all.

scholarly journals The Impact of Macroeconomic Indicators on Indian Stock Prices: An Empirical Analysis

2017 ◽  
Vol 12 (1) ◽  
pp. 61-78 ◽  
Author(s):  
A. K. Giri ◽  
Pooja Joshi
Keyword(s):  
Economic Growth ◽  
Crude Oil ◽  
Stock Prices ◽  
Stock Price ◽  
Variance Decomposition ◽  
Oil Price ◽  
Crude Oil Price ◽  
Long Run ◽  
Short Run ◽  
The Impact

AbstractThe purpose of the present study is to examine the long run and the short run relationship between stock price and a set of macroeconomic variables for Indian economy using annual data from 1979 to 2014. The long run relationship is examined by implementing the ARDL bounds testing approach to co-integration. VECM method is used to test the short and long run causality and variance decomposition is used to predict long run exogenous shocks of the variables. The results confirm a long run relationship among the variables. Evidence suggests that Economic growth, inflation and exchange rate influence stock prices positively. However, crude oil price influences the stock price negatively. This implies that the increase in oil price induces inflationary expectation in the mind of investors and hence stock prices are adversely affected. The VECM result indicates that short run and long run unidirectional causality running from economic growth and FDI to stock prices in India. The result of the variance decomposition shows that stock market development in India is mostly explained by its own shocks. The Government can take steps to control the crude oil price in India and Investors’ confidence has to be gained by boosting the economic growth of the economy through appropriate policy tools.

scholarly journals Stock Prices of Renewable Energy Firms: Are There Asymmetric Responses to Oil Price Changes?

Economies ◽  
2018 ◽  
Vol 6 (4) ◽  
pp. 59 ◽  
Author(s):  
Donggyu Lee ◽  
Jungho Baek
Keyword(s):  
Renewable Energy ◽  
Stock Prices ◽  
Oil Prices ◽  
Oil Price ◽  
Price Changes ◽  
Distributed Lag ◽  
Autoregressive Distributed Lag ◽  
Crude Oil Prices ◽  
Long Run ◽  
Short Run

This article revisits the question of whether crude oil prices have a positive effect on stock the prices of renewable energy firms. To examine this question carefully, we allow for the asymmetric effects of oil price changes in our modeling process, using the nonlinear autoregressive distributed lag (ARDL) approach. We find that changes in oil prices indeed have a significant, positive short-run effect on renewable energy stock prices in an asymmetric manner. However, this short-run effect does not appear to last in the long-run.

A dynamic relationship between crude oil price and Indian equity market: an empirical study with special reference to Indian benchmark index Sensex

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Nikhil Yadav ◽  
Priyanka Tandon ◽  
Ravindra Tripathi ◽  
Rajesh Kumar Shastri
Keyword(s):  
Crude Oil ◽  
Serial Correlation ◽  
Oil Prices ◽  
Crude Oil Price ◽  
Content Type ◽  
Dynamic Relationship ◽  
Crude Oil Prices ◽  
Long Run ◽  
Short Run ◽  
Indian Stock Market

PurposeThe purpose of the study is to investigate the long-run and short-run dynamic relationship between crude oil prices and the movement of Sensex for the period of 2000–2018.Design/methodology/approachThe study uses the augmented Dickey–Fuller test for the presence of unit root, Johansen cointegration test for estimating the cointegration among the variables. Further, in the case of no cointegration found, the study employed the vector autoregression (VAR) model to estimate the long-run relationship and the Granger causality/Wald test for short-run relationship. The study also conducted tests for the prerequisites of the model: serial correlation, heteroskedasticity and normality of data.FindingsThe study found that both the variables, crude oil prices and Sensex are integrated of order 1, that is, I (1), and there is no cointegration between them. Further, the results proliferated from the VAR model unfold the marked effect of previous month crude oil prices (lag 1) on the movement of Indian stock market represented by Sensex considered as the benchmark index. Furthermore, VAR–Granger causality/block exogeneity Wald tests results indicated that there is a causal relationship between the crude oil prices and Sensex under the VAR environment. The model does not have any serial correlation and heteroskedasticity indicating toward the unbiased and robust estimates.Research limitations/implicationsThe study is conducted till the year 2018, and data for the present period (post-2018) is excluded due to ongoing trade issues between the USA and oil-exporting countries such as Iran. The current COVID-19 outbreak has also put serious issues. Due to limited time and availability of standardized data, researchers have considered Sensex as equity index only, but for more generalized research outcome few other equity indexes could have been taken for study.Originality/valueThe study is completely original in nature and is an extensive study of the relationship between the crude oil price and Indian stock market with reference to causality between the variables.

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