Associate Professor Xiaohang Ren, a researcher of the Base, has published a collaborative paper titled "How does green investment respond differently to decomposed oil shocks?" in Resources Policy.

Resources Policy is an internationally renowned journal in the field of environmental research included in SSCI, ranking in Q1 of JCR and Top Journal of Zone 1 in Chinese Academy of Sciences. It specializes in the study of economic and policy issues related to the exploitation, production and use of minerals and fossil fuels.

Abstract: This study investigates the asymmetric impact of oil price shocks on green investment by using a Nonlinear Autoregressive Distributed Lag (NARDL) framework. Oil price shocks are decomposed from perspectives of supply, demand, and risk of the oil market, and the green investment is proxied by the Dow Jones Sustainability World Index. The asymmetry of the oil price impact is examined from different sources of the shocks and the condition when the specific shock level is positive or negative. Our findings indicate that impacts of oil shocks on green investment are different depending on sources of the shocks and time horizons. Specifically, supply shocks exhibit no obvious asymmetric effects. Positive and negative changes of the demand shock depict asymmetric impacts on green investment, while such an asymmetry gradually evolves to be symmetric in the long-run. In contrast, the impact of risk shocks is symmetric in the short-run while being evolved to be asymmetric in the long-run. Moreover, the linkage of oil shocks with green investment is shown to be altered by unanticipated events such as the financial crisis or the COVID-19 pandemic, suggesting the uncertainty embedded in the two is somewhat similar.

Keywords: Oil price shocks, Green investment, Green economic transition, NARDL

Link：https://doi.org/10.1016/j.resourpol.2024.104997

Teacher profile

Xiaohang Ren is a specially appointed associate professor at the Business School of Central South University, a highly cited Chinese scholar of Elsevier, and a top 2% scientist in the world. He mainly focuses on research in energy finance, financial risks, and financial measurement. He has published more than 100 papers in authoritative domestic and foreign journals such as Journal of the American Statistical Association, Transportation Research Part A, Energy Economics, Quantitative Finance, Review of Quantitative Finance and Accounting, International Review of Financial Analysis, Technological Forecasting and Social Change, Business Strategy and the Environment, Pacific-Basin Finance Journal, Applied Energy, Resources Policy, Renewable & Sustainable Energy Review, Energy, Journal of Management Sciences in China (English Edition), Systems Engineering - Theory & Practice, and Chinese Journal of Management Science. Among them, more than 30 papers are ESI hot articles or highly cited papers. He serves as the lead editor of Sustainable Communities (Taylor & Francis), associate editor of Humanities & Social Sciences Communications (the only social science and humanities journal affiliated with Nature), and guest editor of SSCI journals such as Climate Change Economics, Economic Change and Restructuring.