The Nexus between Climate Change and Geopolitical Risk Index in Saudi Arabia Based on the Fourier-Domain Transfer Entropy Spectrum Method

Zouhaier Dhifaoui, Kaies Ncibi (), Faicel Gasmi and Abulmajeed Abdallah Alqarni
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Zouhaier Dhifaoui: Department of Family and Community Medicine, Faculty of Medicine of Sousse, University of Sousse, Mouhamed Karoui Street 4002, Sousse 4023, Tunisia
Kaies Ncibi: Modeling and Optimization for Decisional, Industrial and Logestic Systems Laboratory, Faculty of Management and Economic Sciences, Sfax 3018, Tunisia
Faicel Gasmi: Department of Marketing and E-Commerce, College of Administrative Sciences, University of Najran, P.O. Box 1988, Najran 66462, Saudi Arabia
Abulmajeed Abdallah Alqarni: Law Department, College of Administrative Sciences, University of Najran, P.O. Box 1988, Najran 66462, Saudi Arabia

Sustainability, 2023, vol. 15, issue 18, 1-22

Abstract: Geopolitical risks have recently escalated due to increased disputes and tensions between nations worldwide. Additionally, “climate change” describes the prolonged alteration of regular weather patterns, mainly due to human activities on Earth, leading to disastrous consequences for human livelihoods, the economy, and natural ecology. This study employs a novel transfer entropy spectrum-based Fourier domain to dynamically analyze the geopolitical risk index and specific climate change factors in Saudi Arabia. Our comprehensive investigation reveals a robust bidirectional causal relationship between the geopolitical risk index and key climate change variables, including total precipitation, relative humidity, temperature, and wind speed and direction. These findings provide compelling evidence of the intricate and complex links between geopolitical concerns and climate change in the region. The study offers policymakers and scholars crucial new insights into addressing the challenges posed by geopolitical instability and climate change by uncovering these causal relationships.

Keywords: geopolitical risk index; climatic change; transfer entropy; Fourier spectrum (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2023
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