Commodity market stability and sustainable development: The effect of public health policies

Ding, Shusheng; Wang, Anqi; Cui, Tianxiang; Du, Anna Min; Zhou, Xinmiao

Abstract

This study explores the influence of public health policies on commodity market volatility during public health emergencies, such as pandemics, using data from China and the US. We investigate how stringent public health measures can mitigate the effects of pandemics on the stability of commodity markets by stabilizing domestic demand and supply of natural resources. Our findings highlight the interconnectedness between commodity market stability and oil production, showing that firms increase their oil inventories in response to oil market volatility as a precautionary measure. This action, in turn, affects the amount of oil available for production, impacting oil consumption and extraction rates. We demonstrate that stability in the oil market significantly influences not only oil consumption but also has broader implications for sustainable development, green asset markets, and carbon emissions.

Citation

Ding, S., Wang, A., Cui, T., Du, A. M., & Zhou, X. (2024). Commodity market stability and sustainable development: The effect of public health policies. Research in International Business and Finance, 70(Part B), Article 102386. https://doi.org/10.1016/j.ribaf.2024.102386

• Journal Article Type: Article
• Acceptance Date: Apr 23, 2024
• Online Publication Date: Apr 30, 2024
• Publication Date: 2024-06
• Deposit Date: Apr 30, 2024
• Publicly Available Date: Apr 30, 2024
• Print ISSN: 0275-5319
• Publisher: Elsevier
• Peer Reviewed: Peer Reviewed
• Volume: 70
• Issue: Part B
• Article Number: 102386
• DOI: https://doi.org/10.1016/j.ribaf.2024.102386
• Keywords: Public health policy, Commodity market stability, Commodity price volatility, Impulse response function
• Public URL: http://researchrepository.napier.ac.uk/Output/3603508