Coping with a dual shock: The economic effects of COVID-19 and oil price crises on African economies

Azomahou, Théophile; Ndung’u, Njuguna; Ouédraogo, Mahamady

doi:10.1016/j.resourpol.2021.102093

Cited by 28 publications

(23 citation statements)

References 30 publications

(33 reference statements)

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“…The breakout of the COVID-19 pandemic has brought major setbacks to economic growth (Abu-Rayash & Dincer, 2020 ; Tisdell, 2020 ). Azomahou et al ( 2021 ) confirm that COVID-19 has caused the forecasted GDP growth loss in Africa. Although the COVID-19 pandemic has destroyed the global economy, it has also led to an increase in the sharing of clean and renewable energy and a decrease in fossil fuels (Halbrügge et al, 2021 ; Wan et al, 2021 ), resulting in the demand for green bonds.…”

Section: Introductionmentioning

confidence: 98%

Dynamic nonlinear connectedness between the green bonds, clean energy, and stock price: the impact of the COVID-19 pandemic

et al. 2022

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This paper uses weekly data from July 01, 2011 to July 09, 2021 to examine the dynamic nonlinear connectedness between the green bonds, clean energy, and stock price around the COVID-19 outbreak in the global markets. By building a time-varying parameter vector autoregression model (TVP-VAR), the comparison analyses of pre- and during the COVID-19 sample groups verify the existence of nonlinear and dynamic correlation among the three variables. First, prior to the COVID-19 pandemic, the simultaneous impacts of clean energy on stock price increased over time. Second, the results of impulse responses at different horizons indicate that green bonds lead to a short-term increase of clean energy, and it exerts an increasingly positive impacts after the COVID-19 outbreak. The COVID-19 has weakened the negative impacts of green bonds on stock price in the medium term. Finally, through the analysis of impulse responses at different points, we find that stock prices will rise when clean energy is subjected to a positive shock, and this positive effect is stronger during economic recovery period than in the other two periods.

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Section: Introductionmentioning

confidence: 98%

Dynamic nonlinear connectedness between the green bonds, clean energy, and stock price: the impact of the COVID-19 pandemic

et al. 2022

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“…The advent of coronavirus brought the global health emergency caused by the spread of the novel COVID-19 disease, which affected almost all the countries, including the most developed and advanced nations and the weak economies worldwide (1)(2)(3)(4)(5). This global economic crisis has had adverse effects on individuals' quality of life and mental health (6-10).…”

Section: Introductionmentioning

confidence: 99%

Global Financial Crisis, Smart Lockdown Strategies, and the COVID-19 Spillover Impacts: A Global Perspective Implications From Southeast Asia

et al. 2021

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This present study primarily emphasizes to seek the COVID-19 adverse impacts posing health challenges and global economic crisis. The pandemic (COVID-19) continues to hit the global economies adversely. Pakistan is the 5th-most-populous nation, and recorded positive cases with the third-highest positivity ratio in South Asia, and 26th-highest deaths toll of 21,450 and 29th number of most COVID-19 positive cases with 933,750 worldwide, as of June 6, 2021. The first wave appeared at the end of May 2020, and mid of June reported its peak, which ended by mid-July 2020. Early November 2020 witnessed the second wave with low intensity reached the climax by mid-December. The COVID-19's third wave severely affected the country during mid-March 2021. It exhibited the highest positivity rate, around 20%. New positive patients and deaths toll commenced to skyrocket and reported peak by April 15, 2021. Then situation gradually improved with effective measures and restrictions. The pandemic coronavirus (COVID-19) has affected 220 territories, regions, and countries and resulted in more than 174.116 million infections, deaths, 3.75 million, and 157.157 million positive cases fully recovered from this infectious disease, as of June 7, 2021. The pandemic has caused a severe crisis of healthcare facilities and economic challenges worldwide. Pakistani economy reported GPD's negative growth (–0.05) for the first time over the last 60 years in 2020, which caused a massive financial crisis. The Government's relief package intervened to reduce public mental stress and improve the quality of their lives. IMF reported that Pakistan's GPD bounced back at 4% growth by June 2021. This article determines that economic instability and health burden happened in Pakistan for a longer time than financial disequilibrium that occurred globally. Pakistan encountered this crisis due to its feeble healthcare systems and fragile economy. This study explores adverse health issues and spillover consequences on the economic crisis in Pakistan with global implications. It recommends smart lockdown restrictions in most affected areas to reopen the economic cycle with strict preventive measures to minimize the COVD-19 adverse consequences.

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“…Other studies investigated the impact of the COVID-19 pandemic on the oil price fluctuations (Atri et al, 2021;Adedeji et al, 2021;Le et al, 2021, Alqahtani et al, 2021Bourghelle et al, 2021;Azomahou et al, 2021), while other recent researches focused on the relationship between COVID-19 and environmental degradation (Syed and Ullah 2021;Wu et al, 2021). Despite the interesting idea, the literature is less conclusive and unambiguous on the impact of a sanitary crisis on, simultaneously, economic growth, environmental degradation, and oil price.…”

Section: Literature Reviewmentioning

confidence: 99%

Does a sanitary crisis drive oil prices and carbon emissions in the USA? Evidence from VECM modeling

Gam

2021

Environ Dev Sustain

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This study explores the interdependence among a sanitary crisis, environmental degradation, oil prices, and economic activity in the USA based on weekly data over the period from January 03, 2020, to October 02, 2020, through VECM and Granger causality methods. The study period is characterized by lockdowns and mobility restrictions due to COVID-19 pandemic that may affect the economic and energy sector in the USA. Thus, a meticulous analysis of the impact of a sanitary crisis on economic and energy sectors seems to be crucial. Findings are very interesting and confirm the existence of a significant impact of a COVID-19 pandemic on WTI oil price. More importantly, bidirectional causal relations between the three couples: COVID-19 infections-carbon emission, COVID-19 infections-economic growth, and COVID-19 infections-oil price are also discovered. Taken together, our empirical findings are effective for the relevant authorities and policymakers in the USA to develop an appropriate financial and fiscal policy such as reducing interest rates, subsidizing, promoting sustainable industrialization, and carbon taxation to boost investment and to recover the economic growth without harming the environment and complicating the sanitary situation.

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Coping with a dual shock: The economic effects of COVID-19 and oil price crises on African economies

Cited by 28 publications

References 30 publications

Dynamic nonlinear connectedness between the green bonds, clean energy, and stock price: the impact of the COVID-19 pandemic

Dynamic nonlinear connectedness between the green bonds, clean energy, and stock price: the impact of the COVID-19 pandemic

Global Financial Crisis, Smart Lockdown Strategies, and the COVID-19 Spillover Impacts: A Global Perspective Implications From Southeast Asia

Does a sanitary crisis drive oil prices and carbon emissions in the USA? Evidence from VECM modeling

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