Journal Articles
Permanent URI for this collectionhttp://10.0.100.92:4000/handle/123456789/21
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Item Asymmetric spillover effects in energy markets(International Review of Economics & Finance, 2024-04) Tiwari, Aviral Kumar; Abakah, Emmanuel Joel Aikins; Doğan, Buhari; Adekoya, Oluwasegun B.; Wohar, MarkThis paper explores the asymmetric relationship between clean and dirty energy markets. The study uses the time-varying and frequency-domain spillover approaches, while accounting for asymmetries. We use natural gas, gasoline, gas oil, heating oil, crude oil, coal, petroleum, kerosene, propane, and diesel to denote dirty energy markets and wind, solar and clean energy markets to denote clean energy markets. We use daily data running from May 18, 2011, to August 12, 2020. According to the results obtained, good news in fluctuations in global energy market indices increases the integration of international energy markets in the long run compared to bad news. Our result show that transmission of good and bad volatilities in global energy market indices are dispersed with different time-varying intensities. Empirical evidence further reveals that good news increases integration of international energy markets in the long run compared to bad news. Additionally, markets transmit more bad volatility on average than good volatility during global events. According to the results of the research, we foresee that portfolio managers and investors may experience difficulties in diversifying opportunities in financial volatility periods in the short term. Overall, our findings reveal asymmetric risk effects in investment opportunities between clean and dirty energy. As a result of this information, investors can diversify their investments in the clean energy sector in the long term by using the asymmetry in good and bad fluctuations.Item Net-zero transitions: Advancing dynamic econometric analysis of carbon tax, renewable energy, and circular economy on government actions(Journal of Environmental Management, 2025-04) Shobande, Olatunji A.; Ogbeifun, Lawrence; Tiwari, Aviral KumarDelayed government action is driving society towards a climate disaster. Without urgent and coordinated efforts to achieve net-zero emissions, the frequency and severity of wildfires, floods, and droughts will continue to escalate. Despite the increase in net-zero commitments, many governments still lack clear policies and decisive leadership, weakening initiatives and threatening a sustainable future for generations to come. This study examines the role of carbon taxes, renewable energy, and circular economy practices in shaping effective government actions and policies. Our empirical approach employs advanced econometric methods, integrating time-series analysis and dynamic modelling. We begin by analysing the behaviour of the data using time-series methods, followed by the application of standard panel specifications, including Pooled Ordinary Least Squares (POLS), fixed effects, Roger panel regression, White panel regression, and Driscoll-Kraay standard errors. To investigate both long- and short-term relationships, we employ Generalized Method of Moments (GMM) dynamic analysis, incorporating the augmented Arellano-Bond, Ahn-Schmidt, Arellano-Bond, and Arellano-Bover/Blundell-Bond estimators. Additionally, we use the TL-moment-adapted Machado-Silva Quantile via Moment regression model to examine asymmetric distribution patterns and heterogeneity across different data ranges. To enhance predictive accuracy, properly control for endogeneity, and correct potential cross-panel correlations, we apply alternative and complementary approaches, including the combined Balestra-Nerlove (BN) and Hausman-Taylor models, as well as the Feasible Generalized Least Squares (FGLS) estimator. Our findings underscore the lasting influence of past policy decisions on current climate policy trajectories. Specifically, while carbon taxes can sometimes undermine regulatory efforts to reduce emissions, the adoption of circular economy practices significantly enhances the overall effectiveness of climate policies. Furthermore, our analysis highlights the complex relationship between climate uncertainty and carbon tax implementation, suggesting that policy stability is crucial for facilitating a successful transition to renewable energy sources.Item The credibility of environmental policy stringency: Implications for sustainability in OECD Countries(Energy Economics, 2025-05) Tao, Miaomiao; Tiwari, Aviral Kumar; Poletti, Stephen; Roubaud, David; Silva, EmilsonThis study investigates the evolving interplay between environmental governance and sustainability outcomes, employing dose-response analysis to underscore the necessity of accounting for these interdependencies in formulating climate and emissions policies. Our empirical evidence indicates that regulatory measures are pivotal in advancing sustainability within OECD countries, though their effects differ across various dimensions. Notably, stringent environmental regulations initially exacerbate energy security vulnerabilities in nations below a specific threshold; however, once policy intensity surpasses the threshold, they contribute substantially to mitigating such risks. A comparable pattern emerges for renewable energy adoption, where enhanced policy rigor fosters greater consumption. Paradoxically, tighter regulations induce a marginal uptick in CO2 emissions. Moreover, insights from a dynamic panel threshold framework reveal that foreign direct investment (FDI) conditions the efficacy of environmental policies. As FDI rises, the beneficial influence of regulatory stringency on energy security and renewable utilization strengthens. Nevertheless, when FDI remains below 2.0, stringent environmental policies tend to elevate CO2 emissions, whereas, beyond this threshold, the relationship reverses, leading to emission reductions. These findings underscore the intricate, non-linear interactions between environmental policy and sustainability, highlighting the imperative for calibrated policy frameworks that acknowledge threshold effects.