Energy demand response to the dynamics of the currency valuation: Evidence from G7 countries

Antanas Laurinavicius, Chaleun Vongmileuth, Sonesavanh Vongmileuth, Algimantas Laurinavicius, Shin-Hung Pan and Bisharat Hussain Chang
Additional contact information
Antanas Laurinavicius: Department of Finance, Faculty of Economics and Business Administration, Vilnius University, Vilnius, Lithuania
Chaleun Vongmileuth: UQ Business School, The University of Queensland St Lucia, QLD, Australia
Sonesavanh Vongmileuth: Department of Innovation and Investment, One Charge New Energy and Technology Sole Co., Ltd., Chanthabouly, Vientiane Prefecture, Lao People’s Democratic Republic
Algimantas Laurinavicius: Department of Finance, Faculty of Economics and Business Administration, Vilnius University, Vilnius, Lithuania
Shin-Hung Pan: Department of Information Management, Chaoyang University of Technology, Taiwan
Bisharat Hussain Chang: Department of Business Administration, Sukkur IBA University, Sukkur, Sindh, Pakistan

Advances in Decision Sciences, 2025, vol. 29, issue 1, 1-34

Abstract: [Design/methodology/approach] The study employs several traditional methodologies and the newly developed Mixed-TAR Nonlinear ARDL (MTNARDL) model to investigate long-run co-integration. Additionally, Granger causality in the quantile test is applied to enhance the robustness of the findings. [Findings] The MTNARDL model confirms the presence of long-run co-integration among all sample countries, whereas traditional methodologies fail to detect any such relationship. Furthermore, the Granger causality results reveal that the impact of exchange rate fluctuations on energy demand varies across different quantiles. [Research limitations/implications] While the study provides robust empirical insights, it is limited by the scope of available data and methodological constraints, which may require further validation in other economic settings. [Practical implications] The findings highlight the need for policymakers to design exchange rate and energy policies that account for nonlinearities and quantile-specific effects, ensuring economic stability in G7 nations. [Originality/value] This study extends the literature by integrating extreme exchange rate changes with energy demand in G7 countries, employing advanced methodologies to uncover dynamic relationships that were previously overlooked.

Keywords: NARDL model; MTNARDL model; Granger causality in quantile test; traditional ARDL model (search for similar items in EconPapers)
JEL-codes: C32 E32 F31 O11 Q43 (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
https://iads.site/energy-demand-response-to-the-dy ... e-from-g7-countries/
https://iads.site/wp-content/uploads/2025/05/Energ ... rom-G7-countries.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:aag:wpaper:v:29:y:2025:i:1:p:1-34

Access Statistics for this article

More articles in Advances in Decision Sciences from Asia University, Taiwan Contact information at EDIRC.
Bibliographic data for series maintained by Vincent Pan ().