Exploring the effect of climate risk on agricultural and food stock prices: Fresh evidence from EMD-Based variable-lag transfer entropy analysis

Dhifaoui, Zouhaier; Khalfaoui, Rabeh; Jabeur, Sami Ben; Abedin, Mohammad Zoynul

doi:10.1016/j.jenvman.2022.116789

Cited by 16 publications

(1 citation statement)

References 43 publications

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“…Additionally, using the transfer entropy method in the Fourier domain allows for a more comprehensive analysis of the timevarying and frequency-varying latent links between time series, providing a more accurate representation of the causal relationship between these variables. Several recent studies have successfully applied the transfer entropy method to assess causal relationships and detect nonlinear causality in various domains [13,14]. Lastly, the article addresses the gap in the literature by not only examining the relationship between geopolitical risk and climate change but also by exploring how the indicators of climate change are related to geopolitical risk.…”

Section: Introductionmentioning

confidence: 99%

The Nexus between Climate Change and Geopolitical Risk Index in Saudi Arabia Based on the Fourier-Domain Transfer Entropy Spectrum Method

Dhifaoui,

Ncibi,

Gasmi

et al. 2023

Sustainability

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Geopolitical risks have recently escalated due to increased disputes and tensions between nations worldwide. Additionally, “climate change” describes the prolonged alteration of regular weather patterns, mainly due to human activities on Earth, leading to disastrous consequences for human livelihoods, the economy, and natural ecology. This study employs a novel transfer entropy spectrum-based Fourier domain to dynamically analyze the geopolitical risk index and specific climate change factors in Saudi Arabia. Our comprehensive investigation reveals a robust bidirectional causal relationship between the geopolitical risk index and key climate change variables, including total precipitation, relative humidity, temperature, and wind speed and direction. These findings provide compelling evidence of the intricate and complex links between geopolitical concerns and climate change in the region. The study offers policymakers and scholars crucial new insights into addressing the challenges posed by geopolitical instability and climate change by uncovering these causal relationships.

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Section: Introductionmentioning

confidence: 99%