The relationship between energy subsidies, oil prices, and CO2 emissions in selected Asian countries: a panel threshold analysis

Husaini, Dzul Hadzwan; Ab-Rahim, Rossazana

doi:10.1080/14486563.2021.1961620

Cited by 12 publications

(5 citation statements)

References 46 publications

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“…When fuel prices are low, there is a significant demand for coal as the literature has demonstrated. 73 , 75 On the demand side, the COVID-19 outbreak-related economic disturbances and management efforts have caused a global slowdown in production and transportation that result in a sharp decline in global demand for oil and a consequent reduction in oil prices. As a result, there was a long-run fall in the price of carbon permits due to a decline in the demand for emission permits.…”

Section: Empirical Results and Discussionmentioning

confidence: 99%

“…In keeping with the substitution effect, high oil costs encourage businesses to utilize renewable energy sources. 81 On the other hand, lower oil price discourages people from using cleaner energy because of “the high expense related to the construction and installing renewable energy systems.” 75 Since oil is so cheap, increasing the generation of energy from fossil fuel-based sources also means increasing oil usage. This discovery shows how asymmetrically connected these markets are.…”

Section: Empirical Results and Discussionmentioning

confidence: 99%

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Effect of green bonds, oil prices, and COVID-19 on industrial CO₂ emissions in the USA: Evidence from novel wavelet local multiple correlation approach

Adebayo

Kartal

2023

Energy & Environment

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This study explores the effect of green bonds, oil prices, and the coronavirus disease 2019 (COVID-19) pandemic on industrial carbon dioxide (CO2) emissions. In this context, this study examines the United States of America (USA), which is the biggest economy in the world, uses weekly data between March 6, 2020 and September 30, 2022, and applies a novel wavelet local multiple correlation (WLMC) approach under time-varying and frequency-varying perspective. The novel empirical findings shows that (i) there is a strong negative (positive) co-movement between industrial CO2 emissions and green bonds in the short-run (long-run); (ii) there is a strong positive (negative) co-movement between industrial CO2 emissions and oil price in the medium-run (long-run); (iii) there is a strong negative (positive) co-movement between industrial CO2 emissions and the COVID-19 pandemic in the medium-run (long-run); (iv) the oil price is the dominant factor, whereas there are changing effect of the variables on each other at different times and frequencies; and (vi) overall, there are long-run asymmetric and dynamic correlations between industrial CO2 emissions and variables. Hence, the empirical results highlight the asymmetric, time-varying, and frequency-varying effects of green bonds, oil prices, and the COVID-19 pandemic on industrial CO2 emissions by presenting fresh and novel evidence. Moreover, the study proposes policy implications for the USA government.

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Section: Empirical Results and Discussionmentioning

confidence: 99%

Section: Empirical Results and Discussionmentioning

confidence: 99%

Effect of green bonds, oil prices, and COVID-19 on industrial CO₂ emissions in the USA: Evidence from novel wavelet local multiple correlation approach

Adebayo

Kartal

2023

Energy & Environment

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“…Energy subsidies can be rationalized to achieve environmental management objectives in energy use (Husaini et al, 2021). However, continuous R&D innovation is conducted based on the enterprise's technical capability and resource strength.…”

Section: Discussionmentioning

confidence: 99%

An Inverted U-shaped Relationship? The Impact of Government Subsidies on the R&D Investment of New Energy Companies: Economic Policy Uncertainty and Enterprise Heterogeneity Perspectives

Liu

Wen²,

Liu³

et al. 2022

Front. Energy Res.

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The government is actively pursuing a financial subsidy policy to assist new energy companies in strengthening their ability to innovate independently, but the impact of government subsidies has been contentious. Using 142 new energy listed companies in Shanghai and Shenzhen A-stocks from 2012 to 2018, a fixed-effect model was used to examine the impact of government subsidies on new energy companies’ R&D investment, as well as the changes in the relationship between the two under conditions of economic policy uncertainty and enterprise heterogeneity. The results indicate that government subsidies have an inverted U-shaped effect on enterprise R&D investment; that is, while appropriate subsidies promote enterprise R&D investment, excessive subsidies suffocate other funds invested by the company in R&D and exacerbate the company’s proclivity to invest in fixed assets. Furthermore, economic policy uncertainty has a more substantial negative adjustment effect on the relationship between government subsidies and corporate R&D investment than fixed-asset investment. Additionally, research indicates that in China’s eastern coastal regions, the impact of government subsidies on R&D investment is more remarkable for high-risk preference enterprises and non-state-owned enterprises than in the central and western regions, where the negative adjustment effect of economic policy uncertainty is more remarkable for low-risk-preference and non-state-owned enterprises. It is recommended that government departments ensure economic policy stability and continuity and that subsidy selection be more targeted and precise in determining subsidy funds.

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“…The findings suggest that renewable energy improves environmental quality in both the short and long run; an increase in oil prices causes a decrease in CO 2 emissions and has an important effect on economic growth. Additionally, other documents within this trend study the effects of oil price shocks on CO 2 emissions (Bassey 2015;Habib et al 2021;Husaini et al 2021;Maji et al 2020;Ren et al 2022b;Wei et al 2022). Their results indicate that there is a negative relationship between oil price shocks and CO 2 emissions; higher oil prices can mitigate CO 2 emissions, while lower oil prices can increase sectoral CO 2 emissions.…”

Section: Literature Reviewmentioning

confidence: 95%

A Wavelet Analysis of the Dynamic Connectedness among Oil Prices, Green Bonds, and CO2 Emissions

Marín-Rodríguez

González-Ruiz

Botero-Botero

2023

Risks

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Wavelet power spectrum (WPS) and wavelet coherence analyses (WCA) are used to examine the co-movements among oil prices, green bonds, and CO2 emissions on daily data from January 2014 to October 2022. The WPS results show that oil returns exhibit significant volatility at low and medium frequencies, particularly in 2014, 2019–2020, and 2022. Also, the Green Bond Index presents significant volatility at the end of 2019–2020 and the beginning of 2022 at low, medium, and high frequencies. Additionally, CO2 futures’ returns present high volatility at low and medium frequencies, expressly in 2015–2016, 2018, the end of 2019–2020, and 2022. WCA’s empirical findings reveal (i) that oil returns have a negative impact on the Green Bond Index in the medium term. (ii) There is a strong interdependence between oil prices and CO2 futures’ returns, in short, medium, and long terms, as inferred from the time–frequency analysis. (iii) There also is evidence of strong short, medium, and long terms co-movements between the Green Bond Index and CO2 futures’ returns, with the Green Bond Index leading.

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The relationship between energy subsidies, oil prices, and CO2 emissions in selected Asian countries: a panel threshold analysis

Cited by 12 publications

References 46 publications

Effect of green bonds, oil prices, and COVID-19 on industrial CO₂ emissions in the USA: Evidence from novel wavelet local multiple correlation approach

Effect of green bonds, oil prices, and COVID-19 on industrial CO₂ emissions in the USA: Evidence from novel wavelet local multiple correlation approach

An Inverted U-shaped Relationship? The Impact of Government Subsidies on the R&D Investment of New Energy Companies: Economic Policy Uncertainty and Enterprise Heterogeneity Perspectives

A Wavelet Analysis of the Dynamic Connectedness among Oil Prices, Green Bonds, and CO2 Emissions

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The relationship between energy subsidies, oil prices, and CO2 emissions in selected Asian countries: a panel threshold analysis

Cited by 12 publications

References 46 publications

Effect of green bonds, oil prices, and COVID-19 on industrial CO2 emissions in the USA: Evidence from novel wavelet local multiple correlation approach

Effect of green bonds, oil prices, and COVID-19 on industrial CO2 emissions in the USA: Evidence from novel wavelet local multiple correlation approach

An Inverted U-shaped Relationship? The Impact of Government Subsidies on the R&D Investment of New Energy Companies: Economic Policy Uncertainty and Enterprise Heterogeneity Perspectives

A Wavelet Analysis of the Dynamic Connectedness among Oil Prices, Green Bonds, and CO2 Emissions

Contact Info

Product

Resources

About

Effect of green bonds, oil prices, and COVID-19 on industrial CO₂ emissions in the USA: Evidence from novel wavelet local multiple correlation approach

Effect of green bonds, oil prices, and COVID-19 on industrial CO₂ emissions in the USA: Evidence from novel wavelet local multiple correlation approach