Time-varying dynamics of energy and sustainability uncertainty

This article examines the link between energy-related uncertainty and sustainability uncertainty by utilizing monthly data from November 2002 to October 2022. To this aim, wavelet coherence and time-varying parameter vector autoregression (TVP-VAR) methodologies are utilized. Wavelet coherence results uncover statistically significant long-term correlation between energy and sustainability uncertainties, particularly during periods of global economic crises. The time-varying responses reveal that the impact of energy-related uncertainty shocks is positive over the analysis period. The impacts of energy-related uncertainty are found to be more pronounced during the turbulent periods, such as the 2008 global financial crisis and the COVID-19 pandemic. The time-varying impact of global economic activity on the sustainability uncertainty does not follow a stable trajectory, and it is not statistically significant. The time-varying impact of financial stress on the sustainability uncertainty is not stable, including both positive and negative effects over the analysis period. The results generally reveal the complex interconnections between energy markets, economic conditions, and sustainability issues. This evidence highlights the importance of policymakers taking these connections into account when formulating strategies for energy security and sustainable development, particularly during periods of global economic uncertainty.

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Publication Details

Journal
Research in Globalization
Published
2025-11-12
DOI
https://doi.org/10.1016/j.resglo.2025.100325
Citations
1
Primary Topic
Market Dynamics and Volatility
Type
article
Field-Weighted Citation Impact
3.13
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article

Time-varying dynamics of energy and sustainability uncertainty

Kamil Pícha, Esra Ballı, Bekhzod Kuziboev, Abdurrahman Nazif Çatık et al.
1 citations
Research in Globalization
Market Dynamics and Volatility
3.13
article

Time-varying dynamics of energy and sustainability uncertainty

Kamil Pícha, Esra Ballı, Bekhzod Kuziboev, Abdurrahman Nazif Çatık, Sаmаriddin Mаkhmudov, Aziza Matyakubova
article en
1 citations

Abstract

This article examines the link between energy-related uncertainty and sustainability uncertainty by utilizing monthly data from November 2002 to October 2022. To this aim, wavelet coherence and time-varying parameter vector autoregression (TVP-VAR) methodologies are utilized. Wavelet coherence results uncover statistically significant long-term correlation between energy and sustainability uncertainties, particularly during periods of global economic crises. The time-varying responses reveal that the impact of energy-related uncertainty shocks is positive over the analysis period. The impacts of energy-related uncertainty are found to be more pronounced during the turbulent periods, such as the 2008 global financial crisis and the COVID-19 pandemic. The time-varying impact of global economic activity on the sustainability uncertainty does not follow a stable trajectory, and it is not statistically significant. The time-varying impact of financial stress on the sustainability uncertainty is not stable, including both positive and negative effects over the analysis period. The results generally reveal the complex interconnections between energy markets, economic conditions, and sustainability issues. This evidence highlights the importance of policymakers taking these connections into account when formulating strategies for energy security and sustainable development, particularly during periods of global economic uncertainty.

Research in GlobalizationVol. 11
Sewanee: The University of the South (US), Urgench State University (UZ), Erzincan Binali Yıldırım University (TR), Ege University (TR), Tashkent Islamic University (UZ), Termez State University (UZ)
Openalex Percentile: Top 6%
Market Dynamics and Volatility
3.13
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