Examining crude oil price outlook amidst substitute energy price and household energy expenditure in the USA: A novel nonparametric multivariate QQR approach

• DOI: 10.1016/j.eneco.2023.106613
• Publication Date: 2023-03-07T16:11:22Z
• Authors: Andrew Adewale Alola; Oktay Özkan; Ojonugwa Usman
• Keywords: Quantile; Quantile regression; Mains electricity

The outlook of crude oil prices has sparsely been empirically examined especially from the critical perspectives energy expenditure per household, retail electricity prices, and environmental indicators. Given enormous macroeconomic socioeconomic effects price amidst fundamentals, this study examines dynamics demand (measured by household), i.e., substitute price, carbon dioxide (CO2) emissions in United States America (USA) over period 1970 to 2040. This offers two main innovations: first, it extends bivariate nonparametric Quantile-on-Quantile Regression (QQR) multivariate case. Second, analysis incorporates projected data series, which provides useful policy insights. empirical results show evidence time-varying CO2 across quantiles prices. further that effect through household expenditures is positive stronger at lower corresponds periods low Furthermore, are negative mid-quantiles price. suggests indicator dampen during These findings robust Quantile regression Kernel-based Regularized Least Squares (KRLS) estimates. Therefore, our policies demand, on USA.