Affordable Access

deepdyve-link
Publisher Website

Risk perception and oil and gasoline markets under COVID-19.

Authors
  • Ahundjanov, Behzod B1
  • Akhundjanov, Sherzod B2
  • Okhunjanov, Botir B3
  • 1 Department of Economics, Bucknell University, United States. , (United States)
  • 2 Department of Applied Economics, Utah State University, 4835 Old Main Hill, Logan, UT 84322-4835, United States. , (United States)
  • 3 School of Economic Sciences, Washington State University, United States. , (United States)
Type
Published Article
Journal
Journal of economics and business
Publication Date
Jan 01, 2021
Volume
115
Pages
105979–105979
Identifiers
DOI: 10.1016/j.jeconbus.2020.105979
PMID: 33518846
Source
Medline
Keywords
Language
English
License
Unknown

Abstract

The novel coronavirus (COVID-19) exposed individuals to a great uncertainty about its health and economic ramifications, especially in the early days and weeks of the outbreak. This study documents oil and gasoline market implications of individuals' behavior upon such uncertainty by analyzing the relationship between Google search queries related to COVID-19-information search that reflects one's level of concern about the subject (risk perception)-and the performance of oil and gasoline markets during the pandemic. The empirical analysis based on daily data and a structural vector autoregressive model reveals that a unit increase in the popularity of COVID-19 related global search queries, after controlling for COVID-19 cases, results in 0.083% and 0.104% of a cumulative decline in Dow Jones US Oil & Gas Total index and New York Harbor Conventional Gasoline Regular spot price, respectively, after one day, 0.189% and 0.234% of a cumulative decline after one week, and 0.191% and 0.237% of a cumulative decline after two weeks. The reaction of Brent and West Texas Intermediate crude oil prices to the spike in COVID-19 related online searches is found to be statistically insignificant, which can be explained by oil price pass-through into gasoline spot price. © 2021 Elsevier Inc. All rights reserved.

Report this publication

Statistics

Seen <100 times