COVID-19 and the Energy Price Volatility
The challenges of the world economy and their societies, after the outbreak of the COVID-19 pandemic have led policy-makers to seek for effective solutions. This paper examines the oil price volatility response to the COVID-19 pandemic and stock market volatility using daily data. A general economet...
| Main Authors: | , , , |
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| Format: | Article |
| Language: | English |
| Published: |
MDPI AG
2021-10-01
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| Series: | Energies |
| Subjects: | |
| Online Access: | https://www.mdpi.com/1996-1073/14/20/6496 |
| _version_ | 1797514753263796224 |
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| author | Apostolos G. Christopoulos Petros Kalantonis Ioannis Katsampoxakis Konstantinos Vergos |
| author_facet | Apostolos G. Christopoulos Petros Kalantonis Ioannis Katsampoxakis Konstantinos Vergos |
| author_sort | Apostolos G. Christopoulos |
| collection | DOAJ |
| description | The challenges of the world economy and their societies, after the outbreak of the COVID-19 pandemic have led policy-makers to seek for effective solutions. This paper examines the oil price volatility response to the COVID-19 pandemic and stock market volatility using daily data. A general econometric panel model is applied to investigate the relationship between COVID-19 infection and death announcements with oil price volatility. The paper uses data from six geographical zones, Europe, Africa, Asia, North America, South America, and Oceania for the period 21 January 2020 until 13 May 2021 and the empirical findings show that COVID-19 deaths affected oil volatility significantly. This conclusion is confirmed by a second stage analysis applied separately for each geographical area. The only geographical area where the existence of correlation is not confirmed between the rate of increase in deaths and the volatility of the price of crude oil is Asia. The conclusions of this study clearly suggest that COVID-19 is a new risk component on top of economic and market uncertainty that affects oil prices and volatility. Overall, our results are useful for policy-makers, especially in the case of a new wave of infection and deaths in the future. |
| first_indexed | 2024-03-10T06:35:29Z |
| format | Article |
| id | doaj.art-41eedc2e6f5e43cb9463d6661fb52b39 |
| institution | Directory Open Access Journal |
| issn | 1996-1073 |
| language | English |
| last_indexed | 2024-03-10T06:35:29Z |
| publishDate | 2021-10-01 |
| publisher | MDPI AG |
| record_format | Article |
| series | Energies |
| spelling | doaj.art-41eedc2e6f5e43cb9463d6661fb52b392023-11-22T18:04:08ZengMDPI AGEnergies1996-10732021-10-011420649610.3390/en14206496COVID-19 and the Energy Price VolatilityApostolos G. Christopoulos0Petros Kalantonis1Ioannis Katsampoxakis2Konstantinos Vergos3Department of Business Administration, University of the Aegean, 81100 Mytilene, GreeceDepartment of Tourism Management, University of West Attica, 12244 Athens, GreeceDepartment of Statistics and Actuarial—Financial Mathematics, University of the Aegean, 81100 Mytilene, GreeceDepartment of Economics and Finance, University of Portsmouth, Portsmouth PO13DE, UKThe challenges of the world economy and their societies, after the outbreak of the COVID-19 pandemic have led policy-makers to seek for effective solutions. This paper examines the oil price volatility response to the COVID-19 pandemic and stock market volatility using daily data. A general econometric panel model is applied to investigate the relationship between COVID-19 infection and death announcements with oil price volatility. The paper uses data from six geographical zones, Europe, Africa, Asia, North America, South America, and Oceania for the period 21 January 2020 until 13 May 2021 and the empirical findings show that COVID-19 deaths affected oil volatility significantly. This conclusion is confirmed by a second stage analysis applied separately for each geographical area. The only geographical area where the existence of correlation is not confirmed between the rate of increase in deaths and the volatility of the price of crude oil is Asia. The conclusions of this study clearly suggest that COVID-19 is a new risk component on top of economic and market uncertainty that affects oil prices and volatility. Overall, our results are useful for policy-makers, especially in the case of a new wave of infection and deaths in the future.https://www.mdpi.com/1996-1073/14/20/6496COVID-19pandemicenergy market volatilityannouncementsuncertaintydeaths |
| spellingShingle | Apostolos G. Christopoulos Petros Kalantonis Ioannis Katsampoxakis Konstantinos Vergos COVID-19 and the Energy Price Volatility Energies COVID-19 pandemic energy market volatility announcements uncertainty deaths |
| title | COVID-19 and the Energy Price Volatility |
| title_full | COVID-19 and the Energy Price Volatility |
| title_fullStr | COVID-19 and the Energy Price Volatility |
| title_full_unstemmed | COVID-19 and the Energy Price Volatility |
| title_short | COVID-19 and the Energy Price Volatility |
| title_sort | covid 19 and the energy price volatility |
| topic | COVID-19 pandemic energy market volatility announcements uncertainty deaths |
| url | https://www.mdpi.com/1996-1073/14/20/6496 |
| work_keys_str_mv | AT apostolosgchristopoulos covid19andtheenergypricevolatility AT petroskalantonis covid19andtheenergypricevolatility AT ioanniskatsampoxakis covid19andtheenergypricevolatility AT konstantinosvergos covid19andtheenergypricevolatility |