Economic Policy Uncertainty and the Energy Stock Market: Evidence From China

Abstract

This paper focuses on the relation between China’s economic policy uncertainty and the energy stock market. Based on monthly data from July 2007 to June 2021, we use a structural vector autoregression model to investigate the effect of economic policy uncertainty. We find that economic policy uncertainty has a negative effect on the energy stock market in China. In addition, the energy stock market is positively affected by the country’s overall stock market.