Higher-order moments spillovers among energy, carbon and tourism markets: Time- and frequency-domain evidence

PLoS One. 2024 Nov 14;19(11):e0313002. doi: 10.1371/journal.pone.0313002. eCollection 2024.

Abstract

This paper uses the GJRSK model to estimate the high-order moments of energy (oil, natural gas, and coal), the carbon market, and tourism stocks. Then, it utilizes a novel TVP-VAR time-frequency connectedness approach to examine higher-order moments spillovers among them. The results show a strong connectedness among the three markets. The energy market is the emitter of volatility, skewness and kurtosis spillovers; tourism stock is the receiver; and the carbon market is the transmitter. From a time-domain perspective, the higher-order moments spillovers of the three markets are time-varying, especially during extreme periods, where the energy market's spillover effects on tourism stocks are significantly enhanced, indicating that tourism stocks bear a greater risk at leptokurtosis and fat-tail moment. From a frequency-domain perspective, the long-term asymmetric spillovers of oil, natural gas, and tourism markets on the carbon market are more pronounced than the short-term. Moreover, the COVID-19 pandemic exacerbated the higher-moment spillovers of energy and tourism stocks on the carbon market. Meanwhile, the Russia-Ukraine conflict led to extreme risk transmission within the energy market. These findings have significant implications for cross-industry investors and green finance risk management.

MeSH terms

  • COVID-19* / epidemiology
  • Carbon / analysis
  • Humans
  • Natural Gas
  • Pandemics
  • Russia
  • SARS-CoV-2 / isolation & purification
  • Tourism

Substances

  • Carbon
  • Natural Gas

Grants and funding

This research was funded by Science Research Project of Hebei Education Department (BJS2024093). The funders had no role in study design, data collection and analysis, decision to publish, or preparation of the manuscript.