Associate Professor Xiaohang Ren, a researcher at the Base, has published a collaborative paper titled "Climate Risk Perception and Oil Financialization in China: Evidence from a Time-Varying Granger Model" in the important academic journal Research in International Business and Finance.

Abstract: Financialization has introduced a new dimension to the oil market by incorporating various financial instruments and market participants. This study thus firstly measures the oil financialization by using daily data on Shanghai crude oil futures and Shanghai composite index. The results identify a lower level of oil financialization in China, implying that the oil market is independent on the stock market. Moreover, the exogenous events volatile the degree of oil financialization. We then estimate the impact of climate risk perception on oil financialization using a time-varying Granger model. Novel evidence finds negative and significant time-varying coefficients of climate risk perception on oil financialization, indicating that the effect of climate risk perception is non-constant over time. The empirical results reinforce the implications of the bounded rationality decision and signal theory.

Keywords: Climate risk perception；Oil financialization；Shanghai crude oil futures；Time-varying Granger mode

Link: https://doi.org/10.1016/j.ribaf.2024.102662

Teacher profile

Xiaohang Ren is a Distinguished Associate Professor at the Business School, Central South University, an Elsevier China Highly Cited Researcher, and a Top 2% Scientist Worldwide. He mainly engages in research on energy finance, financial risk, and financial econometrics. He has published more than 100 papers in authoritative journals at home and abroad,including 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 Reviews, Energy, Journal of Management Sciences in China (English Edition), Systems Engineering — Theory and Practice, and Chinese Journal of Management Science. Among these, more than 30 are ESI Hot Papers/Highly Cited Papers. He serves as Section Editor of Sustainable Communities (Taylor & Francis), Associate Editor of journals such as Humanities & Social Sciences Communications (the only humanities and social sciences journal under Nature), and Guest Editor of several SSCI journals including Climate Change Economics and Economic Change and Restructuring