Original scientific paper
https://doi.org/10.1080/1331677X.2021.1992642
Time varying interdependency between COVID-19, tourism market, oil prices, and sustainable climate in United States: evidence from advance wavelet coherence approach
Zhou Xuefeng
Asif Razzaq
Korhan K. Gokmenoglu
Faheem Ur Rehman
Abstract
This study attempts to empirically estimate the interdependence
between COVID-19, tourism market, oil prices, and sustainable climate in United States. In doing so, we employ an advanced
Morlet’s wavelet approach, namely, Wavelet coherence transform
(WCT), Partial and Multiple Wavelet Coherence and found a strong
co-movement between variables, which is varied across the time
scales, indicating the initial, peak, and after peak effect of COVID-19
on tourism market, oil prices, and carbon emissions using daily data
from 6 March 2020 to 6 August 2020. The visuals of WCT exhibit a
cyclic (anti-cyclic) relationship between tourism and oil prices, suggesting a strong positive (negative) co-movement in the shorter and
longer (medium) period. Tourism and carbon emissions possess a
strong positive co-movement across all periods except in the
medium run; however, the intensity of this movement is higher in
the very short-run compared to medium and longer-run. The results
reveal an anti-cyclic association between COVID-19 and tourism, and
COVID-19 is leading tourism with strong negative co-movements.
Finally, the results describe that carbon emissions and COVID-19 are
anti-cyclical and display a positive causality in the shorter run. These
results offer valuable guidelines for all stakeholders.
Keywords
COVID-19; tourism; oil prices; carbon emissions; climate; advance wavelet coherence
Hrčak ID:
302602
URI
Publication date:
31.3.2023.
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