How geopolitical risk and economic policy uncertainty impact coal, natural gas, and oil rent? Evidence from China

Bingjun Zhou, Yan Huang, Ke Gao and Chunyang Luo

Resources Policy, 2024, vol. 88, issue C

Abstract: While numerous studies have delved into the determinants of natural resource rents, the influence of economic policy uncertainty and geopolitical risk on coal, natural gas, and oil rents remains underexplored. Addressing this lacuna, our study pioneers an examination of the repercussions of economic policy uncertainty, geopolitical risk, and economic growth on the rents of coal, natural gas, and oil in China spanning the period 1990–2021. Utilizing the cutting-edge Fourier ARDL (FARDL) methodology, our findings unveil that economic policy uncertainty notably hampers coal and natural gas rents. Intriguingly, geopolitical risk does not exert a significant influence on coal and gas rents. Moreover, a discernible absence of cointegration between oil rent and the trio of economic policy uncertainty, geopolitical risk, and economic growth was observed. Economic growth emerges as a double-edged sword, bolstering coal rent while adversely affecting gas rent in the long run. To optimize natural resource rents, it is imperative for policymakers to mitigate economic policy uncertainty, thereby invigorating the coal and natural gas sectors. Concurrently, the promotion of economic growth can augment coal rent, but the natural gas sector demands innovative strategies due to its divergent response.

Keywords: Economic policy uncertainty; Geopolitical risk; Natural resources rent; Fourier ARDL (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0301420723011042
Full text for ScienceDirect subscribers only

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:eee:jrpoli:v:88:y:2024:i:c:s0301420723011042

DOI: 10.1016/j.resourpol.2023.104393

Access Statistics for this article

Resources Policy is currently edited by R. G. Eggert

More articles in Resources Policy from Elsevier
Bibliographic data for series maintained by Catherine Liu ().