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The importance of trade policy uncertainty to energy consumption in a changing world

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  • Xie, Yutang
  • Cao, Yujia
  • Li, Xiaotao

Abstract

For detecting the impact of trade policy uncertainty (TPU) on energy consumption, we conduct this research by focusing on three types of US energy consumption, including residential, commercial, and industrial sectors. On average, we find that TPU acts on the negative shocks of residential and commercial sectors. Next, from a dynamic perspective, we reveal that the commercial sector could respond to TPU in the short-long term. However, the asymmetric investigation further shows that TPU can impact the declined variations of residential and commercial consumption in the short and long runs while industrial sectors may not be easily affected by TPU.

Suggested Citation

  • Xie, Yutang & Cao, Yujia & Li, Xiaotao, 2023. "The importance of trade policy uncertainty to energy consumption in a changing world," Finance Research Letters, Elsevier, vol. 52(C).
    • Handle: RePEc:eee:finlet:v:52:y:2023:i:c:s1544612322007425
    DOI: 10.1016/j.frl.2022.103566
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    1. Zhang, Jiaming & Guo, Songlin & Dou, Bin & Xie, Bingyuan, 2023. "Evidence of the internationalization of China's crude oil futures: Asymmetric linkages to global financial risks," Energy Economics, Elsevier, vol. 127(PA).

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    More about this item

    Keywords

    Trade policy uncertainty; Energy consumption; Frequency domain; Granger causality test; Asymmetric;
    All these keywords.

    JEL classification:

    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
    • C58 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Financial Econometrics
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy
    • G17 - Financial Economics - - General Financial Markets - - - Financial Forecasting and Simulation

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