IDEAS home Printed from https://ideas.repec.org/a/eee/energy/v298y2024ics0360544224011848.html
   My bibliography  Save this article

Analyzing the connectedness among geopolitical risk, traditional energy and carbon markets

Author

Listed:
  • Jiang, Wei
  • Zhang, Yanyu
  • Wang, Kai-Hua

Abstract

This paper studies time-frequency connectedness using the Diebold Yilmaz method and the Baruník and Křehlík method to examine the relationship among geopolitical risk, traditional energy (coal, oil and gas) and carbon markets. First, geopolitical risk shows stable positive net spillovers in the medium and long term, but fluctuates in the short term. Second, the total connectedness is greater in the short term, and strengthened in the period of rising geopolitical risk with the changes of connectedness paths. Third, in general, the carbon market has greater impact on the geopolitical risk than it has been affected. Finally, as a sub-indicator of geopolitical risk index, geopolitical acts index generally contributes more, but natural gas is more affected by geopolitical threats index. Our results provide useful knowledge for governments to realize their goal of policymaking, and help industrial enterprises make timely adjustments to their energy strategies. In addition, we hope that investors can pay attention to the spillover effect and reduce investment risk.

Suggested Citation

  • Jiang, Wei & Zhang, Yanyu & Wang, Kai-Hua, 2024. "Analyzing the connectedness among geopolitical risk, traditional energy and carbon markets," Energy, Elsevier, vol. 298(C).
    • Handle: RePEc:eee:energy:v:298:y:2024:i:c:s0360544224011848
    DOI: 10.1016/j.energy.2024.131411
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0360544224011848
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.energy.2024.131411?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.

    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:energy:v:298:y:2024:i:c:s0360544224011848. 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.

    We have no bibliographic references for this item. You can help adding them by using 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.journals.elsevier.com/energy .

    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.