Asymmetric impacts of climate policy uncertainty, investor sentiment on energy prices and renewable energy consumption: Evidence from NARDL and wavelet coherence.

Autor: Fu L; School of Computer and Information Engineering, Jiangxi Agricultural University, Nanchang, 330045, China. Electronic address: fulianhappy@163.com., Tu X; School of Computer and Information Engineering, Jiangxi Agricultural University, Nanchang, 330045, China. Electronic address: 1901865908@qq.com., Liao J; School of Computer and Information Engineering, Jiangxi Agricultural University, Nanchang, 330045, China. Electronic address: 3049824349@qq.com.
Jazyk: angličtina
Zdroj: Journal of environmental management [J Environ Manage] 2024 Sep; Vol. 367, pp. 122057. Date of Electronic Publication: 2024 Aug 02.
DOI: 10.1016/j.jenvman.2024.122057
Abstrakt: This paper seeks to look into the asymmetric impacts posed by climate policy uncertainty (CPU) and investor sentiment (IS) upon the price of non-renewable energy, specifically natural gas prices, and the consumption of renewable energy, embodied in geothermal energy, biofuels, and fuel ethanol. To this end, the analysis draws on a non-linear autoregressive distributed lag (NARDL) model and wavelet coherence (WTC) technique with monthly data from January 2000 to December 2021. The NARDL results establish an asymmetric association between the variables, where negative shocks to CPU exert a greater effect on each energy variable than positive shocks, while the reverse is true for IS. Furthermore, it has been noticed that CPU and IS exhibit primarily negative correlations with the target variables over the long term, with CPU having a more pronounced effect on natural gas prices than on other forms of renewable energy consumption. Wavelet analysis also reveals that CPU leads the energy variables over the medium to long run, while IS assumes a dominant role in the short to medium run. These momentous findings underscore the importance of this study in informing energy policy formulation and environmental management, as well as optimizing investor portfolios.
Competing Interests: Declaration of competing interest The authors declare that they have no known competing financial interests or personal relationships that could have appeared to influence the work reported in this paper.
(Copyright © 2024 Elsevier Ltd. All rights reserved.)
Databáze: MEDLINE
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