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Role of Climate Risk in the Oil Price Dynamics

Author

Listed:
  • Aliyu Akorede Rufai
  • Kingsley Imandojemu
  • Tubobanimi Inoma Abbiyesuku

    (Economics Department, Babcock University, Nigeria)

Abstract

This study explores the time-frequency role of climate risk in the oil price dynamics using wavelet techniques. The findings show that oil prices are affected by climate risk, although some interdependent relationships are evident between the two variables in the long run.

Suggested Citation

  • Aliyu Akorede Rufai & Kingsley Imandojemu & Tubobanimi Inoma Abbiyesuku, 2024. "Role of Climate Risk in the Oil Price Dynamics," Energy RESEARCH LETTERS, Asia-Pacific Applied Economics Association, vol. 5(2), pages 1-5.
    • Handle: RePEc:ayb:jrnerl:102
    DOI: 2024/07/10
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    References listed on IDEAS

    as
    1. Scott R. Baker & Nicholas Bloom & Steven J. Davis, 2016. "Measuring Economic Policy Uncertainty," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 131(4), pages 1593-1636.
    2. Li, Xiao-Lin & Chang, Tsangyao & Miller, Stephen M. & Balcilar, Mehmet & Gupta, Rangan, 2015. "The co-movement and causality between the U.S. housing and stock markets in the time and frequency domains," International Review of Economics & Finance, Elsevier, vol. 38(C), pages 220-233.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Climate risks; Oil stock; Wavelet transformation;
    All these keywords.

    JEL classification:

    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

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