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arXiv · 2503.06599

Spillover effects between climate policy uncertainty, energy markets, and food markets: A time-frequency analysis

Ting Zhang·Peng-Fei Li·Wei-Xing Zhou
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Abstract

The study examines the return connectedness between climate policy uncertainty (CPU), clean energy, fossil energy, and food markets. Using the time-domain method of Diebold and Yilmaz (2012) and frequency-domain methods of Barun{\'{i}}k and K{\v{r}}hl{\'{i}}k (2018), we find substantial spillover effects between these markets. Furthermore, high frequency domain is the primary driver of overall connectedness. In addition, CPU is a net contributor of return shocks in the short term, whereas it turns to be a net recipient in the medium and long terms. Across all frequencies, clean energy and oils are consistent net recipients, while meat is a dominant net contributor.

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Ting Zhang, Peng-Fei Li, Wei-Xing Zhou. 2025-03-09. Spillover effects between climate policy uncertainty, energy markets, and food markets: A time-frequency analysis. https://arxiv.org/abs/2503.06599

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