ItemArticle

Analysing the impact of oil prices, economic activity, and trade policy uncertainty on CO2 emissions in the US context: A wavelet approach

Title
Analysing the impact of oil prices, economic activity, and trade policy uncertainty on CO2 emissions in the US context: A wavelet approach
Creator
Kappil, Shine Raju; Kocoglu, Mustafa; Banday, Umer Jeelanie; Jahanger, Atif
Description
This study examines the simultaneous co-movements between oil prices, economic activity, trade policy uncertainty, and CO2 emissions in the United States using a series of wavelet methodologies. Unlike traditional approaches, the wavelet approach is appropriate for understanding the time-varying associations at different frequencies and is designed to efficiently handle the non-stationary nature of economic and environmental time series data. The empirical results highlight the potential of a leading relationship where economic activities and trade policy uncertainties drive CO2 emissions in the US during the period from January 1990 to January 2022. Contrarily, the link between oil prices and CO2 emissions is characterized by intricate dynamics, exhibiting both lagging and leading co-movements at different frequencies. Moreover, economic activities have a positive impact on CO2 emissions, while in the high quantile tails, trade policy uncertainty decreases CO2 emissions. This means economic activity is slowing down during the period of high trade policy uncertainty. Our findings highlight the necessity of specific policies that reconcile economic growth with environmental sustainability, manage the effect of oil price changes on CO2 emissions, and match trade policies with emission-minimizing goals. Based on the results, this research offers important implications for policymakers to ensure the equilibrium between economic activity and environmental management within the scope of sustainable development goals. 2025 International Association for Gondwana Research
Source
Gondwana Research;Volume;147;pp.213-232
Date
01-01-2025
Publisher
Elsevier Inc.
Subject
CO2 emissions; Economic activity; Oil prices; Trade policy uncertainties; US; Wavelet techniques
Coverage
Kappil S.R., School of Business and Management, Christ University, Bangalore, India; Kocoglu M., Erciyes University, Kayseri, 38039, Turkey, Prague University of Economics and Business, Faculty of Finance and Accounting, W. Churchill sq. 4, Prague, 3, 130 67, Czech Republic; Banday U.J., Scientist (Economics), Indian Institute of Technology Delhi, Department of Civil Engineering, India; Jahanger A., International Business School, Hainan University, Hainan, Haikou City, 570228, China
Rights
Restricted Access; Hardcopy may be available in the library
Relation
ISSN: 1342937X;
Format
online
Language
English
Type
Article

Citation

Kappil, Shine Raju; Kocoglu, Mustafa; Banday, Umer Jeelanie; Jahanger, Atif, “Analysing the impact of oil prices, economic activity, and trade policy uncertainty on CO2 emissions in the US context: A wavelet approach,” CHRIST (Deemed To Be University) Institutional Repository, accessed June 18, 2026, https://archives.christuniversity.in/items/show/22268.

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