Volume 5, Issue 1, March 2020, Page: 10-13
Corona Virus Outbreak and the Global Energy Demand: A Case of People’s Republic of China
Rabiu Maijama’a, Department of Economics, Faculty of Social and Management Sciences, Bauchi State University Gadau, Yuli Campus, Bauchi, Nigeria; Nagerian National Petroleum Corporation, Nigerian National Petroleum Corporation Towers, Central Business District, Garki Abuja, Nigeria
Kabiru Saidu Musa, Department of Economics, Faculty of Social and Management Sciences, Bauchi State University Gadau, Yuli Campus, Bauchi, Nigeria
Auwal Garba, Department of Environmental Management Technology, Abubakar Tafawa Balewa University, Bauchi, Nigeria
Umar Muhammad Baba, Department of Economics, Faculty of Social and Management Sciences, Bauchi State University Gadau, Yuli Campus, Bauchi, Nigeria
Received: Feb. 14, 2020;       Accepted: Mar. 2, 2020;       Published: Mar. 10, 2020
DOI: 10.11648/j.ajere.20200501.12      View  162      Downloads  520
Abstract
The study investigates the impact of corona virus out break on the global energy demand in china using the time series daily data spanning the period 23rd January to 8th February 2020 on total cases of corona virus, total population of china, total exchange rate of Chinese currency and international crude oil prices. Using the Philip Perron unit root test for testing the stationarity of the variables, the results revealed that total cases of corona virus, international crude oil price and total population are stationary at level while official exchange of Chinese currency is stationary at first difference. After the testing the existence of co-integration relationship among the variables using Engle Granger test for co-integration, the ordinary least squares test result revealed that total population has positive and significant impact on total cases of corona virus while crude oil price is negative and significantly related to the cases of the virus. The official exchange rate is also negative but insignificant in explaining the cases of the virus. Base on the findings, the researchers therefore recommend that the oil producing countries should reduce their supply of crude oil to the country affected with the virus in order to push the price upward to the desired level and the government of the affected country should maintain restrictions with regards to the movement of its population in order to tackled the spread of the virus.
Keywords
Corona Virus, Crude Oil Price, Exchange Rate, Engle Granger Test for Co-integration, Ordinary Least Squares Test
To cite this article
Rabiu Maijama’a, Kabiru Saidu Musa, Auwal Garba, Umar Muhammad Baba, Corona Virus Outbreak and the Global Energy Demand: A Case of People’s Republic of China, American Journal of Environmental and Resource Economics. Vol. 5, No. 1, 2020, pp. 10-13. doi: 10.11648/j.ajere.20200501.12
Copyright
Copyright © 2020 Authors retain the copyright of this article.
This article is an open access article distributed under the Creative Commons Attribution License (http://creativecommons.org/licenses/by/4.0/) which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
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