The reaction of the metal and gold resource planning in the post-COVID-19 era and Russia-Ukrainian conflict: Role of fossil fuel markets for portfolio hedging strategies

The prime objective of this article is to examine the policy-making role of metal markets, gold resources, and clean energy markets in the post-COVID-19 era and the Russia-Ukrainian military conflict. In doing so, we analyze the role of fossil fuels, clean energy, and metals markets, considering the military conflict in Ukraine in 2022. The study employs event study methodology (ESM), Total connectedness index (TCI), and network analyses. The results indicate that natural gas and clean energy prices are less affected by conflict in the aftermath of an invasion than traditional energy and metals markets. In addition, we observe an increase in the TCI in the energy markets during announcement days. The TCI of the metals market is greater than that of the energy market. According to network connectivity, the key asset class transmitters of the shock in Europe are the Geopolitical index (GPR), gold, and the clean energy stock index (ERIX). The U.S. markets are less affected by the situation in Ukraine. The average hedge suggests that the optimal hedge differs from one market to the next, with fossil fuels and renewable energy, respectively, being more hedge effective and reducing risk by an average of around 0.80 and 0.59, given their ability to function as a hedging instrument.

Does environmental quality and weather induce COVID-19: Case study of Istanbul, Turkey

The coronavirus pandemic has infected more than 100 million people worldwide with COVID-19, with millions of deaths across the globe. In this research, we explored the effects of environmental and weather variables with daily COVID-19 cases and COVID-19 fatalities in Istanbul, Turkey. Turkey has the 8th highest number of COVID-19 cases globally, with the highest infections and deaths in Istanbul. This may be the first study to conduct a comprehensive investigation for environmental quality (air quality pollutants, e.g., PM2.5 and PM10, ozone, nitrogen dioxide, sulfur dioxide, carbon monoxide, etc.), weather parameters (temperature, humidity) and COVID-19 in Turkey. The authors collected meteorological data from 11 March 2020 to 8 February 2021 and COVID-19 data from Istanbul and other regions. The results from empirical estimations, correlation analysis, and quantile on quantile techniques support that air quality and temperature significantly influence COVID-19 deaths in Istanbul. This research may help policymakers and health scientists to take specific measures to reduce the spread of coronavirus across different global cities.The effects of air quality on COVID-19 in Istanbul was investigated.The study applied correlation and quantile on quantile techniques over daily data.Temperature significantly induces the spread of COVID-19 in Istanbul at all quantiles.Air quality and Nitrogen are positively linked with COVID-19 new cases.

Extreme spillover effect of COVID-19 pandemic-related news and cryptocurrencies on green bond markets: A quantile connectedness analysis.

We provide the first empirical study on the role of panic and stress related to the COVID-19 pandemic, including six uncertainties and the four most traded cryptocurrencies, on three green bond market volatilities. Based on daily data covering the period from January 1, 2020 to January 31, 2022, we combine Diebold and Yilmaz's (2012, 2014) time domain spillover approach and Ando et al.'s (2022) quantile regression framework to investigate the time-frequency spillover connectedness among markets and measure the direction and intensity of the net transmission effect under extreme negative and positive event conditions, and normal states. We further provide novel insights into the green finance literature by examining sensitivity to quantile analysis of the net transfer mechanism between green bonds, cryptocurrencies, and pandemic uncertainty. Regarding the network connectedness analysis, the results reveal strong net information spillover transmission among markets under the bearish market. In extremely negative event circumstances, the MSCI Euro green bond acts as the leading net shock receiver in the system, whereas COVID-19 fake news appears as the largest net shock contributor, followed by BTC. According to sensitivity to quantile analysis, the net dynamic shock transfer mechanism is time-varying and quantile-dependent. Overall, our work uncovers crucial implications for investors and policymakers.

Analyzing the Nexus Between Geopolitical Risk, Policy Uncertainty, and Tourist Arrivals: Evidence From the United States.

This study attempts to explore the causal linkage of the COVID-19 pandemic, economic policy uncertainty, geopolitical risk, and tourism arrivals in the United States taking data from January to November 2020. In order to analyze the above relationship, this study uses a novel time-varying granger causality test developed by Shi et al. (2018), which incorporates its three causality algorithms such as forward recursive causality, rolling causality, and recursive evolving causality. The findings from forward recursive causality could not confirm any significant causal relationship between COVID-19 and tourism, geopolitical risk (GPR) and tourism, economic policy uncertainty and tourism, and geopolitical risk and COVID-19 but found causality between economic policy uncertainty and COVID-19. The rolling window causality reported bidirectional causality between COVID-19 and tourism and unidirectional causality running from tourism to geopolitical risk. However, the recursive evolving causality identified a significant bidirectional causal relationship between all the variables. Based on the findings, policy implications for the tourism sector are provided.

Investigating the Effects of Meteorological Parameters on COVID-19: Case Study of New Jersey, United States.

This research aims to explore the correlation between meteorological parameters and COVID-19 pandemic in New Jersey, United States. The authors employ extensive correlation analysis including Pearson correlation, Spearman correlation, Kendall's rank correlation and auto regressive distributed lag (ARDL) to check the effects of meteorological parameters on the COVID new cases of New Jersey. In doing so, PM 2.5, air quality index, temperature (°C), humidity (%), health security index, human development index, and population density are considered as crucial meteorological and non-meteorological factors. This research work used the maximum available data of all variables from 1st March to 7th July 2020. Among the weather indicators, temperature (°C) was found to have a negative correlation, while humidity and air quality highlighted a positive correlation with daily new cases of COVID-19 in New Jersey. The empirical findings illustrated that there is a strong positive association of lagged humidity, air quality, PM 2.5, and previous infections with daily new cases. Similarly, the ARDL findings suggest that air quality, humidity and infections have lagged effects with the COVID-19 spread across New Jersey. The empirical conclusions of this research might serve as a key input to mitigate the rapid spread of COVID-19 across the United States.