Examining the behaviour of energy prices to COVID-19 uncertainty: A quantile on quantile approach.

The energy market is extremely vulnerable to the uncertainty caused by the pandemic and leads to global lockdowns and stagnant economic activity. This study is important because energy prices (EPs) experience a dramatic decline due to the pandemic, which has negative consequences for the global economy. We aim to analyze EPs behaviour to coronavirus (COVID-19) from 2020:01 to 2021:05. The finding shows that EPs are extremely vulnerable to the uncertainty produced by the pandemic in the short run. The COVID-19 has a negative effect on EPs in the medium to upper quantile, which suggests that higher uncertainty caused by the pandemic results in rapid decline. However, the impact of the COVID-19 is greater on the oil prices (OPs) as compared to the natural gas (NGP) and the heating oil price (HOP). Moreover, the finding reveals that COVID-19 impact on EPs are consistently negative across all the quantile. The degree of the impact increases when the relationship changes from short to long run. The pandemic has affected the energy price in the short run, which needs prudent policies to fully grasp the magnitude of the COVID-19 impact on energy prices.

COVID-19 impact on multifractality of energy prices: Asymmetric multifractality analysis.

This article assesses the asymmetric multifractality of the energy prices in the different periods during the coronavirus pandemic (COVID-19) through asymmetric multifractality detrended fluctuation analysis. The higher (lower) multifractality shows a rapid rise (fall), which has different consequences for the energy prices. The findings explore strong multifractality in the downward movements for crude oil, heating oil, diesel, gasoline, propane and kerosene oil returns. The upside multifractality for coal and natural gas returns are bigger than the downside in both periods. Furthermore, the access asymmetry is more pronounced during the COVID-19, implying increased market inefficiency. The outcomes explore if energy prices are inefficient during the pandemic. A special attention is required in order to observe such unexpected fluctuations in the price dynamic and guidelines are vital. The level of efficiency can be improved by a greater transference in information while the government must play its role in regulations. Such aspects can increase stability and decrease the expected risks and price movements.

Save the environment, get financing! How China is protecting the environment with green credit policies?

Green credit policy (GCP) can achieve economic growth and environmental conservation, notably by lowering air pollutants (PM2.5). Green credit is a significant component of China's green financing for environmental regulation and achieving carbon neutrality. In this paper, to understand the causal relationship between GCP and PM2.5, we apply a bootstrap full-sample Granger causality test, parameter stability test, and quantile-on-quantile test for the period between 2003:M01 to 2019:M12. The result shows a bidirectional relationship and reveals that GCP has varied environmental implications in its early and mature stages because of a low percentage of green credit and a lack of motivation for financial institutions. In the long run, GCP and PM2.5 interaction confirm the favorable effects of GCP on PM2.5 as the green credit system improves. For robustness, we used quantile-based granger causality to evaluate the causative link between GCP and PM2.5. In light of the findings, this research advises legislative reforms and stresses the relevance of green credit in improving air quality. This study adds additional evidence that air pollution affects green credit policies. Air quality being a leading indicator helps firms anticipate changes in bank credit preferences and alter financing techniques.

The race to zero emissions: Can renewable energy be the path to carbon neutrality?

When taking into account the general terms on which the global green and low-carbon transition takes place, it can be affirmed that the use of clean and renewable energy, including wind, hydro, solar, etc., is an alternative to the traditional energy sources. The renewable energy industry possesses considerable potential, and has recently become the centre of the global energy landscape. Therefore, this article refers to the rolling-window Granger causality test, in order to explore the role of renewable energy (RE) in reducing the greenhouse gas emissions. By studying the interactions that take place between RE consumption and carbon dioxide (CO2) emissions, we find that the negative impact of RE on CO2 indicates that the replacement role of RE has become increasingly prominent, for it to effectively contribute towards the realization of carbon emission reduction. The results in this regard are consistent with the energy-environment model, suggesting that RE has an excellent performance in achieving carbon neutrality. In fact, CO2 usually exhibits a negative effect on RE, which indicates towards the predictability of environmental quality to the development potential of renewable energy. Carbon emission reduction has become a game of interest among the countries around the world. And hence, in relation to these turn of events in the last few decades, RE is now expected to usher in the required acceleration. While eventually it is believed that the green energy competition will reshape the geopolitics of the world.

Sustainable finance and renewable energy: Promoters of carbon neutrality in the United States.

This investigation explores whether sustainable finance and renewable energy could facilitate U.S. carbon neutrality. We perform the time-varying parameter-stochastic volatility-vector auto-regression (TVP-SV-VAR) model to obtain the changing relations among U.S. sustainable finance (SF), renewable energy (RE) and carbon dioxide emission (CO2). The empirical outcomes reveal a short-term negative effect from RE to CO2, indicating that renewable energy consumption could promote U.S. carbon neutrality. This effect is asymmetrical, and it could be observed that RE increase has a greater effect on CO2 than RE reduction. Also, the development of sustainable finance could facilitate U.S. carbon neutrality, and the direct impact is longer and more significant than RE, but the indirect effect of SF on CO2 by influencing RE is hysteretic. Besides, the asymmetric effect reveals that the negative direct impact of SF increase on CO2 is smaller than SF reduction, and the latter's indirect effect is more rapid than the former. Against the backdrop of global warming and frequent extreme weather, the above conclusions have meaningful practical applications for the U.S. to achieve carbon neutrality targets through developing sustainable finance and renewable energy.

COVID19: A blessing in disguise for European stock markets?

This study aims to bridge the gap that has remained unfilled after the initial scrutiny and reporting of the damaging effects of Covid-19 on financial markets. The study analyzes 10 European stock markets and compares their pre and post covid return dynamics. Our findings are surprisingly pleasant, albeit counterintuitive to some. We observe a quick and unprecedented recovery in the European stock market, yielding significantly higher returns post covid, given a reasonably large holding period. We also observe an alteration and change in the status quo of countries while transmitting or receiving cross-market spillovers.

Can new energy vehicles help to achieve carbon neutrality targets?

In the reforms pertaining to the energy structure in the automotive industry, new energy vehicles (NEVs) have long been the focus of government attention, as an effective means to reduce air pollution. Therefore, this paper employs the rolling-window Granger causality test, in order to discuss the environmental benefits of new energy vehicles, so as to explore the active role of the transportation sector in reducing air pollution. By studying the interactions between NEVs and particulate matter (PM2.5) from the time period spanning from 2013:M1 to 2020:M9, we have found that the positive influences from NEVs to PM2.5 ascertain that NEVs cannot be considered as an efficient measure to mitigate air pollution. Moreover, these results are not supported by the energy and environment interaction model, which essentially indicates that replacing traditional energy with renewable energy is an effective measure for controlling environmental pollution. In fact, PM2.5 tends to have a negative impact on NEVs, which underlines that the air quality index is a leading indicator, particularly when it comes to analyzing the development of the NEVs market. This essentially highlights that in China, NEVs still do not account for a high proportion of car sales, and therefore, its environmental protection effect is not obvious. At the same time, the factor of public awareness regarding environmental protection will thus occupy a considerable proportion in the transmission of NEVs sales. These revelations will help the government to formulate environmental governance policies, and expand the new energy vehicle market to achieve carbon neutrality targets in China.

Trade and technological innovation: The catalysts for climate change and way forward for COP21.

Following the adaptation of the Paris Agreement at COP21, it was noted that the traditional measures of carbon emissions have several limitations; and a reliable and relevant carbon emissions measurement is important to formulate a response to the challenge of climate change. This study, therefore, explores the relationship between international trade and consumption-based carbon emissions, which is a trade adjusted indicator; and measures the outflow and the inflow of emissions through exports and imports separately. We also include technological innovation in the model to understand its impact on consumption-based carbon emissions. The results show that exports and consumption-based carbon emissions are negatively associated, and technological innovation helps reducing the adverse effect of CO2 growth. In contrast, Imports and gross domestic product are positively linked with consumption-based carbon emissions. The findings also suggest the countries which embraced the Paris Climate Agreement must focus on consumption-based carbon emissions rather than the production-based carbon emissions.

Financial implications of fourth industrial revolution: Can bitcoin improve prospects of energy investment?

Bitcoin and the blockchain technology on which it is based are the key drivers behind the accelerated pace of Fourth Industrial Revolution in the domain of Finance. The offshoots of this technology however are not limited and are rapidly spreading in other domains such as oil market. This paper investigates the causality or influences that both markets, Bitcoin price (BP) and oil price (OP) have on each other by applying the bootstrap Granger causal relationship tests considering full as well as sub-samples. Our analysis reveals that shocks originated in OP and transmitted towards BP can be both positive or negative. The positive impact indicates that Bitcoin can be viewed as an asset helpful in avoiding the risks of the high OP, which also indicates that Bitcoin and oil are in the same boat, however, the negative effects cannot support this view. The negative influence of OP on BP can be explained by the burst of the Bitcoin bubble which has weakened its hedging ability. In turn, there is also a negative influence or reverse causality running from BP to OP, highlighting that the demand for oil by investors can be threatened by the increasing BP. Keeping in view the more integrated and complexed financial dynamics which are the results of Fourth Industrial Revolution, investors can benefit from this interrelationship to diversify the risks and optimize their investment by building a more balanced portfolio. Also, governments could promote and protect the healthy development of the Bitcoin and energy market by preventing the Bitcoin bubbles and understanding the reasons of oil price volatility.

Does technology innovation complement the renewable energy transition?

The study assesses the relationship between technology innovation and renewable energy in the G10 countries. According to the findings, technology innovation has a significant impact on renewable energy in various countries, including Germany, the Netherlands, Sweden, the UK, and the USA. It argues that technological innovation is one of the most important elements in renewable energy in these countries because of their strong innovative base and huge spending on research and development. However, the results for the remaining countries show no causation from technology innovation to renewable energy, implying that variables other than technology innovation drive renewable energy development. On the other hand, renewable energy does Granger cause technology innovation in Germany, the Netherlands, and the USA. These countries need to invest in implementation instead of spending on the existing infrastructure. Furthermore, the increased dependence on fossil fuels and nuclear energy may leave renewables undeveloped, with less emphasis on renewable-technology diffusion.

Does China's low-carbon action reduce pollution emissions? A quasi-natural experiment based on the low-carbon city construction.

To achieve the goal of "carbon peak and carbon neutrality", it is crucial for China to effectively control environmental pollution in low-carbon action (LCA). Based on the evidence from 283 cities in China from 2007 to 2019, the difference-in-differences (DID) method is applied to explore the impact of LCA on pollutant emissions represented by the pilot of low-carbon city construction (LCCC) in China. The main findings are as follows. First of all, the LCCC suppresses pollution emissions, and the basic conclusions are still stable after endogenous treatment and robustness testing. Secondly, the mechanism analysis reveals that the main path of LCCC affecting pollution reduction comes from the progress of green technology and the upgrading of industrial structure. Finally, the heterogeneity analysis shows that the pollution reduction effect of the LCCC is better in the eastern region and cities with higher level of green economy development. Based on the policy standpoint of environmental protection, the LCCC has opened up a reasonable exploration path for China and other countries in the world to carry out effective pollution reduction.

How does ESG performance affect stock returns? Empirical evidence from listed companies in China.

With the increasing attention to sustainable development, environmental, social, and corporate governance (ESG) investment has become an important vehicle for achieving carbon neutrality worldwide. In this paper, the impact of ESG performance on stock returns and the transmission mechanism are explored. A fixed effect model based on a panel unbalanced data of listed companies in China from 2011 to 2020 is selected for the empirical analysis. The results show that ESG performance of listed companies in China positively impacts stock returns. However, by distinguishing the ownership nature and region to which listed companies belong, this study finds that the relationship between ESG performance and stock returns is particularly significant for non-state-owned companies and those in the eastern region. Further, based on stakeholder theory, financial performance and corporate innovation ability are embedded into the relationship between ESG performance and stock returns. Both financial performance and corporate innovation ability play partial mediating roles in the correlation between ESG performance and stock returns. In addition, the relationship between ESG performance and corporate innovation ability is non-linear. This paper provides insight for emerging markets into cultivating the value investment concept of investors and improving the ESG information disclosure system.

Are economic policy uncertainty and carbon futures price interacting? Evidence from the European Union.

This paper investigates the dynamic interplay between economic policy uncertainty and the carbon futures market within the context of global low-carbon development. The study utilizes a comprehensive dataset spanning 2005 to 2023, including daily observations of economic policy uncertainty (EPU) and carbon future prices (EUAP) in the European Union. Bootstrap subsample rolling window Granger causality tests are employed to examine the interrelationship between EPU and EUAP, providing robust and time-varying causal insights. The findings reveal the adverse impact of EPU on EUAP, highlighting that the volatility associated with economic policy uncertainty can serve as a predictive factor for carbon future prices. On the other hand, the EUAP exhibits a negative influence on the uncertainty of economic policy, indicating that the economic situation in Europe can be observed through the carbon future market. The findings presented in this study are in line with the underlying theoretical model of policy uncertainty and future prices. Considering the complex economic environment and the influence exerted by COVID-19, exploring the link between EPU and EUAP is crucial for informing investors' decision-making and guiding the development of policy to enhance carbon market efficiency and promote a low-carbon economy.

Green bonds and US shale gas prices: Evidence from a novel time-varying causality.

This paper provides a new perspective on the green bond market (measured by GBI) and the US shale gas price (measured by SGPI). The leading method for testing the mutual influence between GBI and SGPI, the bootstrap subsample rolling causality test, is a novel application of research in the green bond market. The results of the novel time-varying causality test indicate that SGPI has both positive and negative effects on GBI. Based on the positive reaction of GBI, a spike in SGPI fueled greater demand for green projects, which accelerated the increase in GBI. However, this view cannot be confirmed by the negative effect due to the energy crisis. This outcome is consistent with the general equilibrium model, which underlines a certain impact of SGPI on GBI. Furthermore, the positive impact of GBI on SGPI indicates that shale gas prices can be predicted from the green bond market. Understanding the nexus between SGPI and the GBI is of practical significance for bond issuers, regulators, and investors.

Does policy uncertainty threaten renewable energy? Evidence from G7 countries.

This study evaluates economic policy uncertainty (EPU) impact on renewable energy (RE) in the G7 countries. The finding explores a negative impact of EPU on RE across all quantiles, suggesting that EPU disturbs the macroeconomy, which leads to the decline in RE. However, the impact occurs in the upper quantiles, which recommends that high EPU influences RE rapidly. The coefficients show the varying effects of EPU on RE, as the impact of EPU decreases in Germany when the relationship changes from short to long term. Similarly, the impact increases in Italy, Japan, the UK, and the USA when the relationship changes from short to long run. The sustainable development of RE requires greater economic stability. This is possible if the government makes future policies by involving all stakeholders. Complete information about the planning, implementation, and modification of economic policies should be readily shared with all participants.

Are there bubbles in the vanilla price?

This paper investigates the presence of the bubbles that are experienced in the global vanilla (VNL) price, using the GSADF approach. The results show that there are five bubbles in the VNL price that are driven by specific reasons. Also, in this regard, the opening and ending points of each bubble coincide with specific events that contribute toward the formation, as well as the rupture of the bubbles. It has also been noted that the cyclone Hudah and the monopoly of the cartels trigger the first bubble, while the regulation and export taxation policy drive the second bubble. However, market-oriented policies, the abolition of cartels, and the exchange rate adjustments are the leading factors that form the third bubble. Furthermore, political instability, hurricanes and bad weather are the key factors driving the fourth bubble. And finally, the rising global demand and decreasing supply, price speculation, poor quality, and cyclone Enawo create the last bubble. It needs the VNL market to be more stable in order to continue supply, which can then control the price fluctuations. The minimum role of the cartels and middlemen is vital for VNL price stability. Therefore, the governments should ideally facilitate the big companies to directly negotiate with farmers which may be beneficial for both companies and the farmers alike.

The dynamic interaction between COVID-19 and shipping freight rates: a quantile on quantile analysis.

This study determines the impact of the coronavirus disease (COVID-19) that has been prevalent since the year 2019, on the shipping freights. This task has been undertaken by using the wavelet quantile on the quantile approach. The results of the study affirm that the pandemic has in fact affected the shipping freight costs, primarily due to the lower demand for energy and raw materials, and the unavailability of the vessels. In addition to this, the spread of COVID-19 has had a positive impact on the Baltic Dry Index in the high quantiles and is deemed to be more responsive in the long run. Also, the COVID-19 infection has had a negative effect on the Baltic Dry Tanker Index and the Baltic Clean Tanker Index in the medium to high quantiles, particularly in the short and the medium run. The positive impact of COVID-19 on the Baltic Clean Tanker Index has been recognized in the long term in the high quantiles. These findings support the theoretical model which states that the spread of COVID-19 and the shipping freights are closely related. The results suggest that the degree of the effect is more causal in the short. Therefore, the shipping industry must ideally pay special attention to the detection of abrupt changes in the freight rate dynamics, and the specific regulations regarding these intricacies are critical.

Fabrication and Property Characterization of Long-Glass-Fiber-Reinforced Polypropylene Composites Processed Using a Three-Barrel Injection Molding Machine.

Processing equipment and parameters will highly influence the properties of long-fiber-reinforced injection-molded thermoplastic composites, leading to different fiber lengths and orientations. Thus, maintaining fiber length during the injection molding process is always a big challenge for engineers. This study uses long-glass-fiber-reinforced polypropylene with 25 mm fiber length and a special-built novel injection molding machine with a three-barrel injection unit, including a plasticizing screw, an injection plunger, and a packing plunger, to fabricate injection molding parts while retaining long fiber length. This study also discusses the influence of process parameters, such as back pressure, screw speed, melt temperature, and different flow paths, on the properties of long-glass-fiber-reinforced composites. The experiment results show that a higher screw speed and back pressure will reduce the fiber length in the injection-molded parts. However, using appropriate parameter settings can maintain the fiber length to more than 10 mm. It was found that by increasing the back pressure, the cross direction of the fiber orientation can be increased by up to 15% and the air trap volume fraction can be decreased by up to 86%. Setting appropriate back pressure under a low screw speed will increase the tensile strength. Finally, it was found that the single-edge-gate path results in a higher tensile strength than that of the single-sprue-gate path due to the retainment of longer fiber length in the injection-molded part.

Urbanization and carbon emissions: a panel threshold analysis.

This study analyzes whether an optimal level of urbanization (UB) exists at which the newly industrialized countries (NIC) can reduce carbon dioxide emissions (CE). The results suggest that UB has a positive effect when it is lower than the threshold value. Whereas UB has a negative effect on CE when it is above the threshold value, identify an optimal level in the NIC countries for CE. Moreover, industrialization, economic growth, and energy consumption have a positive significant impact on CE while renewable energy has a negative effect. The study is useful for policymakers to realize optimal UB level to reduce CE. Moreover, the balanced developmental approach for the rural-urban areas and encouragement of internal migration to small cities will minimize the flow of migration to metropolitan cities. Sustainable economic development required continuous energy supply; thus, the event of low carbon energy is extremely vital. The development of low carbon energy is very important and policymakers should improve the structure of energy consumption.

Does fiscal decentralization and eco-innovation promote renewable energy consumption? Analyzing the role of political risk.

The role of fiscal decentralization is important not only for the promotion of cleaner energy sources but also for a sustainable environment and the achievement of the Paris Climate Agreement (COP21) in 2015 in general. Therefore, this study attempts to incorporate fiscal decentralization as a new determinant of renewable and non-renewable energy consumption along with political risk index, eco-innovation, and renewable energy research and development (R&D) for seven (Organization for Economic Cooperation and Development) OECD countries from 1990 to 2018. For empirical analysis, the test proposed in Banerjee and Carrion-I-Silvestre (2017) is employed for cointegration, while cross-section augmented autoregressive-distributed lag (CS-ARDL) is used for the short-run and long-run analysis, and to check robustness, a common correlated effect mean group (CCEMG) test is applied. The results confirm that fiscal decentralization and eco-innovation promote renewable energy consumption and lower non-renewable energy use. Moreover, the improvement of the political risk index and the rise of R&D in renewable energy increase renewable and decrease non-renewable energy consumption. For policy implications, this study recommends that transferring the power to the local governments will further improve energy efficiency and switch these countries' energy mix towards more sustainable sources of energy. This shall also help to reduce the use of non-renewable energy consumption, i.e., fossil fuels in the total energy mix.