Dependence between the GCC energy equities, global clean energy and emission markets: Evidence from wavelet analysis

Alkathery M. A., Chaudhuri K., NASİR M. A.

Energy Economics, vol.121, 2023 (SSCI) identifier

  • Nəşrin Növü: Article / Article
  • Cild: 121
  • Nəşr tarixi: 2023
  • Doi nömrəsi: 10.1016/j.eneco.2023.106659
  • jurnalın adı: Energy Economics
  • Jurnalın baxıldığı indekslər: Social Sciences Citation Index (SSCI), Scopus, International Bibliography of Social Sciences, PASCAL, Periodicals Index Online, ABI/INFORM, Agricultural & Environmental Science Database, Business Source Elite, Business Source Premier, Compendex, EconLit, Environment Index, INSPEC, PAIS International, Public Affairs Index
  • Açar sözlər: Clean energy, CO2 emissions, Energy transition, EU-ETS, GCC, Oil price, Stock market, Wavelet analysis
  • Açıq Arxiv Kolleksiyası: Məqalə
  • Adres: Bəli

Qısa məlumat

In the context of the debate on energy transition and its implication for the energy-export-dependent GCC region, this study developed a dependence structure using a multiscale approach of wavelets to investigate the impact of global clean energy production, oil price and CO2 emission prices on the energy stock markets of the largest three oil exporters in the GCC region: Saudi, UAE and Kuwait. Our key findings indicate that the three global energy markets are weakly and positively correlated with the GCC energy stock prices at lower frequencies (higher scales). Besides, at the same level of frequencies, we found that changes in the global clean energy production index and CO2 emission price positively influence the three GCC energy stock prices. Oil price is a stronger moderator for the three GCC energy equities at lower frequencies relative to other variables, especially for Kuwait's energy stock price. We also discover that the Abu Dhabi energy index is more sensitive to swings in the three perspective markets compared to Saudi and Kuwait energy markets. These findings carry important implications and guidelines for policymakers, portfolio managers and scholars who attempt to understand the dynamic nexus between GCC energy sectors stock, global transition to clean energy and pricing emissions.