The importance of trade policy uncertainty to energy consumption in a changing world

Yutang Xie, Yujia Cao and Xiaotao Li

Finance Research Letters, 2023, vol. 52, issue C

Abstract: For detecting the impact of trade policy uncertainty (TPU) on energy consumption, we conduct this research by focusing on three types of US energy consumption, including residential, commercial, and industrial sectors. On average, we find that TPU acts on the negative shocks of residential and commercial sectors. Next, from a dynamic perspective, we reveal that the commercial sector could respond to TPU in the short-long term. However, the asymmetric investigation further shows that TPU can impact the declined variations of residential and commercial consumption in the short and long runs while industrial sectors may not be easily affected by TPU.

Keywords: Trade policy uncertainty; Energy consumption; Frequency domain; Granger causality test; Asymmetric (search for similar items in EconPapers)
JEL-codes: C22 C58 G17 Q43 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:52:y:2023:i:c:s1544612322007425

DOI: 10.1016/j.frl.2022.103566

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