Time‐Quantile and Frequency Response of Green Growth to Energy Vulnerability, Energy Uncertainty, and Geopolitical Risks
Abstract The study explains the time‐quantile‐frequency adjustments of green growth to energy vulnerability, energy uncertainties, and geopolitical risks (GPR) in the United States (US). Novel insights with notable policy implications emerged following the empirical analysis of monthly data spanning...
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| Main Author: | |
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| Format: | Article |
| Language: | English |
| Published: |
Wiley
2024-12-01
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| Series: | Global Challenges |
| Subjects: | |
| Online Access: | https://doi.org/10.1002/gch2.202400225 |
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| Summary: | Abstract The study explains the time‐quantile‐frequency adjustments of green growth to energy vulnerability, energy uncertainties, and geopolitical risks (GPR) in the United States (US). Novel insights with notable policy implications emerged following the empirical analysis of monthly data spanning 2000 m1–2022 m12. The study implemented the Wavelet Quantile Correlation (WQC), Wavelet Quantile Granger Causality, and the Rolling Windows Wavelet Quantile Granger Causality to understand the dynamics among the variables. Evidence from WQC divulged time‐specific positive and negative interactions between green growth and its determinants. Specifically, energy vulnerability dampened green growth more profoundly in the immediate and medium terms. However, in the long term, green growth prospers amidst energy vulnerability. This outcome reflects some policy effectiveness that reduced the negative effects of energy vulnerability for green growth. The effects of energy uncertainties are similar to that of energy vulnerability, with more profound damaging effects in the lower medium horizon of the distributions. GPR dampened green growth in the short run and enhanced it in the medium term, but it reduced green growth more profoundly in the long run. The pleasant effects of energy efficiency and digitalization are observed mostly in the long run, with notable green growth‐reducing effects mainly in the short run. |
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| ISSN: | 2056-6646 |