MPRA, Munich Personal RePEc Archive, cilt.2018, no.90170, ss.1-18, 2018 (Hakemsiz Dergi)
This paper observes the possible co-movements of oil price and CO2 emissions in China
by following wavelet coherence and wavelet partial coherence analyses to be able to depict
short-run and long-run co-movements at both low and high frequencies. To this end, this
research might provide the current literature with the output of potential short run and long
run, structural, changes in CO2 emissions upon a shock (a change) in oil prices in China
together with the control variables of World oil prices, fossil energy consumption, and
renewables consumption, and, urban population in China.
Therefore, this research aims at determining wavelet coherencies between the variables
and phase differences to exhibit the leading variable in potential co-movements.
By following the time domain and frequency domain analyses of this research, one may
claim that the oil prices in China has considerable negative impact on CO2 emissions at high
frequencies for the periods 1960-2014 and 1971-2014 in China. Besides, one may underline
as well other important output of the research exploring that the urban population and CO2
emissions have positive associations, move together for the period 1960-2014 in China.
Eventually, this paper might suggest that authorities follow demand side management policies
considering energy demand behavior at both shorter cycles and longer cycles to diminish the
CO2 emissions in China.