LAPSE:2023.32439
Published Article
LAPSE:2023.32439
Investigating the Effects of the United States’ Economic Slowdown Related to the COVID-19 Pandemic on Energy Consumption in Other Countries—A Global Vector Autoregressive Model
Sailan Hu, Rongrong Li
April 20, 2023
The COVID-19 pandemic has caused a drop-in economic activity and energy consumption of the United States. This work aims to investigate the spillover effects of the United States’ COVID-19 economic recession on economic growth and energy consumption in other nations using a global vector autoregressive (GVAR) approach and quarterly data between 1990 and 2013 from 41 major countries/regions. On the one hand, the simulation results indicate that the US COVID-19 recession has a negative impact on other countries’ economic growth through trade ties, reducing the economic growth of other countries, especially for countries which have a close trade relationship with the US. In addition, the spillover effects of the US economic recession have different impacts on other countries’ energy consumption. Countries with the closest trade ties to the US are most affected, such as Japan and China. In addition, the impact of the US’ economic shock on energy consumption in developing countries is significant in the short term, while its impact on developed countries is significant in the long term. On the other hand, the simulation results of energy spillover effects indicate a reduction in US energy consumption slightly reduces economic growth in other nations. In addition, a reduction in energy consumption in the US does not have a significant negative impact on energy consumption in other developed countries. Furthermore, the spillover effect of declining energy consumption in the US on energy consumption in developing countries is significant in the short term. However, the spillover effects of falling energy consumption in the US on developing countries are different. The spillover effect of the decline in energy consumption in the US causes a slight decline in energy consumption in China and Brazil, whereas the spillover effect of the decline in energy consumption in the US does not cause a decline in energy consumption in India and Brazil.
Keywords
COVID-19, energy consumption, GVAR, spillover effects, US economic growth
Suggested Citation
Hu S, Li R. Investigating the Effects of the United States’ Economic Slowdown Related to the COVID-19 Pandemic on Energy Consumption in Other Countries—A Global Vector Autoregressive Model. (2023). LAPSE:2023.32439
Author Affiliations
Hu S: School of Economics and Management, China University of Petroleum (East China), Qingdao 266580, China
Li R: School of Economics and Management, China University of Petroleum (East China), Qingdao 266580, China
Journal Name
Energies
Volume
14
Issue
11
First Page
2984
Year
2021
Publication Date
2021-05-21
Published Version
ISSN
1996-1073
Version Comments
Original Submission
Other Meta
PII: en14112984, Publication Type: Journal Article
Record Map
Published Article

LAPSE:2023.32439
This Record
External Link

doi:10.3390/en14112984
Publisher Version
Download
Files
[Download 1v1.pdf] (3.9 MB)
Apr 20, 2023
Main Article
License
CC BY 4.0
Meta
Record Statistics
Record Views
52
Version History
[v1] (Original Submission)
Apr 20, 2023
 
Verified by curator on
Apr 20, 2023
This Version Number
v1
Citations
Most Recent
This Version
URL Here
https://psecommunity.org/LAPSE:2023.32439
 
Original Submitter
Auto Uploader for LAPSE
Links to Related Works
Directly Related to This Work
Publisher Version