Exploring the connection between geopolitical risks and energy markets
研究了能源商品期货和清洁能源指数如何响应地缘政治风险，发现重大事件如疫情和冲突影响市场效率，且能源市场对地缘政治风险有显著影响。
This study delves into the complexities of energy commodity futures and clean energy indexes, analyzing their responses to geopolitical risk. The detrended fluctuation analysis was applied, and the efficiency index was estimated to assess energy market behavior better. This approach allows the evaluation of long-range dependence and market efficiency. The findings show evolving patterns influenced by significant geopolitical events such as the COVID-19 pandemic and geopolitical conflicts. Transfer entropy analysis also uncovers directional dependence between energy markets and geopolitical risk, highlighting energy commodities' influential (or anticipated) role on geopolitical indexes. The dynamic analysis emphasizes time-varying relationships, with fluctuations notably impacted by global events like the European sovereign debt crisis and escalating geopolitical tensions. Additionally, clean energy indexes exhibit sensitivity to geopolitical risk, offering valuable insights into market behavior and informing risk management strategies. The study highlights the complex and dynamic relationships between energy markets and geopolitical factors and provides useful information for investors and policymakers on energy markets. • Geopolitical events influence the efficiency level of the energy market. • Pandemics and wars influence the efficiency level of the energy market. • Energy commodities and geopolitical risk revealed asymmetric relationships. • Energy markets are strong influencers of geopolitical risk. • Dynamic analysis reveals shifting patterns of influence over time.