IDEAS home Printed from https://ideas.repec.org/a/eee/jrpoli/v89y2024ics0301420723013041.html
   My bibliography  Save this article

To the test of economic recovery: The swings in energy resource prices

Author

Listed:
  • Tao, Nan
  • Wu, Tiantian
  • Yan, Guo

Abstract

This paper examines how changes in oil prices impact a wide range of economic indicators worldwide, using empirical data, and a vector autoregressive (VAR) model analyzes oil price volatility. In this paper, we use fast Fourier units and multivariate regression to conduct a Granger causality test and find that volatility from 2001 to 2021 significantly affected economic recovery and spending during that period. Even during the global financial crisis, oil price and corporate investment were two of the most stable economic indicators. The COVID-19 pandemic has caused significant changes in economic activity and energy prices, and oil prices and economic growth are linked to the global financial crisis and COVID-19. In particular, the recent decline in oil prices can be traced back to the COVID-19 pandemic and worldwide economic concerns. Information about the COVID-19 pandemic spread between the oil market and banking activities faster than it did during previous global financial crises or COVID-19 breakouts. The results of this study have comprehensive implications on human understanding.

Suggested Citation

  • Tao, Nan & Wu, Tiantian & Yan, Guo, 2024. "To the test of economic recovery: The swings in energy resource prices," Resources Policy, Elsevier, vol. 89(C).
    • Handle: RePEc:eee:jrpoli:v:89:y:2024:i:c:s0301420723013041
    DOI: 10.1016/j.resourpol.2023.104593
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0301420723013041
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.resourpol.2023.104593?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Zhang, Dongyang & Mohsin, Muhammad & Rasheed, Abdul Khaliq & Chang, Youngho & Taghizadeh-Hesary, Farhad, 2021. "Public spending and green economic growth in BRI region: Mediating role of green finance," Energy Policy, Elsevier, vol. 153(C).
    2. Danish, & Wang, Bo & Wang, Zhaohua, 2018. "Imported technology and CO2 emission in China: Collecting evidence through bound testing and VECM approach," Renewable and Sustainable Energy Reviews, Elsevier, vol. 82(P3), pages 4204-4214.
    3. Hongda Liu & Haifeng Zhao, 2022. "Upgrading models, evolutionary mechanisms and vertical cases of service-oriented manufacturing in SVC leading enterprises: Product-development and service-innovation for industry 4.0," Palgrave Communications, Palgrave Macmillan, vol. 9(1), pages 1-24, December.
    4. Xiuzhen, Xie & Zheng, Wenxiu & Umair, Muhammad, 2022. "Testing the fluctuations of oil resource price volatility: A hurdle for economic recovery," Resources Policy, Elsevier, vol. 79(C).
    5. Robert J. Barro, 1991. "Economic Growth in a Cross Section of Countries," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 106(2), pages 407-443.
    6. Zhang, Dongyang, 2021. "Does a designed financial system impact polluting firms’ employment? Evidence of an experimental economic policy," Finance Research Letters, Elsevier, vol. 38(C).
    7. Riley, David & Schaafsma, Marije & Marin-Moreno, Héctor & Minshull, Tim A., 2020. "A social, environmental and economic evaluation protocol for potential gas hydrate exploitation projects," Applied Energy, Elsevier, vol. 263(C).
    8. Merello, Paloma & Barberá, Antonio & la Poza, Elena De, 2022. "Is the sustainability profile of FinTech companies a key driver of their value?," Technological Forecasting and Social Change, Elsevier, vol. 174(C).
    9. Li, ChangZheng & Umair, Muhammad, 2023. "Does green finance development goals affects renewable energy in China," Renewable Energy, Elsevier, vol. 203(C), pages 898-905.
    10. Zhidong Bai & Yongchang Hui & Dandan Jiang & Zhihui Lv & Wing-Keung Wong & Shurong Zheng, 2018. "A new test of multivariate nonlinear causality," PLOS ONE, Public Library of Science, vol. 13(1), pages 1-14, January.
    11. Gharehgozli, Orkideh, 2021. "An empirical comparison between a regression framework and the Synthetic Control Method," The Quarterly Review of Economics and Finance, Elsevier, vol. 81(C), pages 70-81.
    12. Abdul-Rahaman, Awal & Issahaku, Gazali & Zereyesus, Yacob A., 2021. "Improved rice variety adoption and farm production efficiency: Accounting for unobservable selection bias and technology gaps among smallholder farmers in Ghana," Technology in Society, Elsevier, vol. 64(C).
    13. Fei Jin & Lung-fei Lee & Jihai Yu, 2021. "Sequential and efficient GMM estimation of dynamic short panel data models," Econometric Reviews, Taylor & Francis Journals, vol. 40(10), pages 1007-1037, February.
    14. Azar, Christian & Holmberg, John, 1995. "Defining the generational environmental debt," Ecological Economics, Elsevier, vol. 14(1), pages 7-19, July.
    15. Mohammad Imdadul Haque, 2021. "Oil price shocks and energy consumption in GCC countries: a system-GMM approach," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 23(6), pages 9336-9351, June.
    16. George Hondroyiannis & Dimitrios Papaoikonomou, 2020. "The effect of card payments on VAT revenue in the euro area: evidence from a panel VECM," Journal of Economic Studies, Emerald Group Publishing Limited, vol. 47(6), pages 1281-1306, June.
    17. Hiemstra, Craig & Jones, Jonathan D, 1994. "Testing for Linear and Nonlinear Granger Causality in the Stock Price-Volume Relation," Journal of Finance, American Finance Association, vol. 49(5), pages 1639-1664, December.
    18. Tong, Hui & Wei, Shang-Jin, 2021. "Endogenous corporate leverage response to a safer macro environment: The case of foreign exchange reserve accumulation," Journal of International Economics, Elsevier, vol. 132(C).
    19. Bai, Zhidong & Wong, Wing-Keung & Zhang, Bingzhi, 2010. "Multivariate linear and nonlinear causality tests," Mathematics and Computers in Simulation (MATCOM), Elsevier, vol. 81(1), pages 5-17.
    20. Feng Dong & Chang Qin & Xiaoyun Zhang & Xu Zhao & Yuling Pan & Yujin Gao & Jiao Zhu & Yangfan Li, 2021. "Towards Carbon Neutrality: The Impact of Renewable Energy Development on Carbon Emission Efficiency," IJERPH, MDPI, vol. 18(24), pages 1-23, December.
    21. Ziyang Li & Hongwei Shi & Hongda Liu, 2021. "Research on the concentration, potential and mission of science and technology innovation in China," PLOS ONE, Public Library of Science, vol. 16(10), pages 1-23, October.
    22. Brian C. O’Neill & Leiwen Jiang & Samir KC & Regina Fuchs & Shonali Pachauri & Emily K. Laidlaw & Tiantian Zhang & Wei Zhou & Xiaolin Ren, 2020. "The effect of education on determinants of climate change risks," Nature Sustainability, Nature, vol. 3(7), pages 520-528, July.
    23. Liu, Fang & Umair, Muhammad & Gao, Junjun, 2023. "Assessing oil price volatility co-movement with stock market volatility through quantile regression approach," Resources Policy, Elsevier, vol. 81(C).
    24. Theodore Groves & Yongmiao Hong & John McMillan & Barry Naughton, 1994. "Autonomy and Incentives in Chinese State Enterprises," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 109(1), pages 183-209.
    25. Fang, Wei & Liu, Zhen & Surya Putra, Ahmad Romadhoni, 2022. "Role of research and development in green economic growth through renewable energy development: Empirical evidence from South Asia," Renewable Energy, Elsevier, vol. 194(C), pages 1142-1152.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Cui, Kai & Li, Xinxue & Li, Gang, 2023. "What kind of fiscal policies and natural resources efficiency promotes green economic growth? Evidence from regression analysis," Resources Policy, Elsevier, vol. 85(PB).
    2. Dai, Li & Xiong, Yuyu, 2023. "Does the green finance development and renewable energy affect the economic recovery in Asian economies," Renewable Energy, Elsevier, vol. 216(C).
    3. Fang, Ying & Fan, Ying & Haroon, Muhammad & Dilanchiev, Azer, 2023. "Exploring the relationship between global economic policy and volatility of crude futures: A two-factor GARCH-MIDAS analysis," Resources Policy, Elsevier, vol. 85(PA).
    4. Sun, Gebing & Li, Guozhi & Dilanchiev, Azer & Kazimova, Asli, 2023. "Promotion of green financing: Role of renewable energy and energy transition in China," Renewable Energy, Elsevier, vol. 210(C), pages 769-775.
    5. Wang, Zheng & Feng, NaNa & Zuo, WenJin & Jia, YanHuai, 2024. "Sustainable recovery through efficient resource markets: Innovations and solutions," Resources Policy, Elsevier, vol. 88(C).
    6. Tang, Qianning & Shahla, Rzayeva & Leyla, Aliyeva & Sevinj, Huseynova, 2023. "Moderating role of carbon emission and institutional stability on renewable energy across developing countries," Renewable Energy, Elsevier, vol. 209(C), pages 413-419.
    7. Kuang, Hewu & Liang, Yiyan & Zhao, Wenjia & Cai, Jiahong, 2023. "Impact of natural resources and technology on economic development and sustainable environment – Analysis of resources-energy-growth-environment linkages in BRICS," Resources Policy, Elsevier, vol. 85(PB).
    8. Qiu, Kai & Liu, Chunli & Li, Ying, 2023. "The effect of natural resource utilization efficency, financial development for the economic development In Asian Countries," Resources Policy, Elsevier, vol. 86(PA).
    9. Zhou, Lianjie & Hu, Junhui & Liu, Dongshuang & He, Mengwei, 2023. "Studying the role of fiscal policy to utilize natural resources development: Leads to sustainable development goals," Resources Policy, Elsevier, vol. 84(C).
    10. Lamei, Yin & Zhou, Yue & Shan, Liu, 2023. "Environmental efficiency, climate innovation, and resource rent in Chinaʼs SDGs: Insights from quantile regressions," Resources Policy, Elsevier, vol. 86(PA).
    11. Cao, Feifei, 2023. "Digital financial innovation and renewable electrification: A step toward zero carbon nexus," Renewable Energy, Elsevier, vol. 215(C).
    12. Li, Junji & Wang, Rui & Aizhan, Duisebayeva & Karimzade, Mehriban, 2023. "Assessing the impacts of Covid-19 on stock exchange, gold prices, and financial markets: Fresh evidences from econometric analysis," Resources Policy, Elsevier, vol. 83(C).
    13. Zhang, Rongxin & Aljumah, Ahmad Ibrahim & Ghardallou, Wafa & Li, Zeyun & Li, Jinhua & Cifuentes-Faura, Javier, 2023. "How economic development promotes the sustainability targets? Role of natural resources utilization," Resources Policy, Elsevier, vol. 85(PA).
    14. Qi, Haozhi & Huang, Xucheng & Sheeraz, Muhammad, 2023. "Green financing for renewable energy development: Driving the attainment of zero-emission targets," Renewable Energy, Elsevier, vol. 213(C), pages 30-37.
    15. Fan, Weina & Anser, Muhammad Khalid & Nasir, Muhammad Hamid & Nazar, Raima, 2023. "Uncertainty in firm innovation scheme and impact of green fiscal policy; Economic recovery of Chinese firms in the post-Covid-19 era," Economic Analysis and Policy, Elsevier, vol. 78(C), pages 1424-1439.
    16. zhang, Ling & Niu, Guangli, 2023. "Role of financial performance and natural resources development on economic recovery: Empirical evidence from an Asian perspective," Resources Policy, Elsevier, vol. 85(PA).
    17. Xia, Yu, 2023. "Role of stock market return and natural resources utilisation on green economic development: Empirical evidence from China," Resources Policy, Elsevier, vol. 81(C).
    18. Chen, Kun & Bian, Rui, 2023. "Green financing and renewable resources for China's sustainable growth: Assessing macroeconomic industry impact," Resources Policy, Elsevier, vol. 85(PA).
    19. Xu, Lan & Wu, Yang, 2023. "Nexus between green finance, renewable energy and carbon emission: Empirical evidence from selected Asian economies," Renewable Energy, Elsevier, vol. 215(C).
    20. Telfah, Sadeq & Chau, Ka Yin & Tran, Trung Kien & Bui, Anh Tuan & Tai, Nguyen Tan & Phan, Thi Thu Hien, 2023. "Role of financial markets and natural resource utilization in green economic recovery: Evidence from selected developing economies," Resources Policy, Elsevier, vol. 83(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jrpoli:v:89:y:2024:i:c:s0301420723013041. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/inca/30467 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.