Corona Virus Outbreak and the Global Energy Demand: A Case of People’s Republic of China

Rabiu Maijama’a; Kabiru Saidu Musa; Auwal Garba; Umar Muhammad Baba

doi:doi:10.11648/j.ajere.20200501.12

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Corona Virus Outbreak and the Global Energy Demand: A Case of People’s Republic of China

Rabiu Maijama’a, Kabiru Saidu Musa, Auwal Garba, Umar Muhammad Baba

Published in American Journal of Environmental and Resource Economics (Volume 5, Issue 1)

Received: 14 February 2020 Accepted: 2 March 2020 Published: 10 March 2020

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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 23^rd January to 8^th 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.

Published in	American Journal of Environmental and Resource Economics (Volume 5, Issue 1)
DOI	10.11648/j.ajere.20200501.12
Page(s)	10-13
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2020. Published by Science Publishing Group

Keywords

Corona Virus, Crude Oil Price, Exchange Rate, Engle Granger Test for Co-integration, Ordinary Least Squares Test

References

[1]	World Health Organization (2020) press conference on novel corona virus outbreak.
[2]	Betsy M. K, (2020) What We Know about the Corona virus, From Symptoms to Treatment, the Wall Street Journal, Available at https://www.wsj.com/articles/what-we-know-about- the-wuhan-virus-11579716128.
[3]	Ben, G. (2020) Corona Virus is infecting everything in the Energy Sector. Available at https://www.axios.com/coronavirus-china-energy-sector-impact-f89cd7b8-6605-470f- 8338-70af44e4aaf1.html.
[4]	Laila, K. (2020) Oil Sinks to three-Month Lows as Corona Virus Raises Demand Fears. https://www.theglobeandmail.com/business/industry-news/energy-and-resources/article- oil-drops-below-60-as-coronavirus-drives-demand-concern/.
[5]	Wall Street Journal reports on corona virus outbreak. Available at https://link.axios.com/click/19381944.52858/.
[6]	Carolyn, K. (2020) Corona Virus and the Unexpected Risk to Oil Demand, the Hill. https://thehill.com/opinion/energy-environment/480480-coronavirus-and-the-unexpected-risk-to- oil-demand.
[7]	Data on Cases of Corona Virus is obtained from Wordometers website. Available at http://www.worldometers.info/coronavirus/coronavirus-cases/.
[8]	Data on China population and Exchange Rate were obtained from National Bureau of Statistics of China. Available at http://www.stats.gov.cn/english/.
[9]	Data on International Crude Oil Prices were obtained at https://www.macrotrends.net/2566/crude-oil-prices-today-live-chart.
[10]	Musa, K. S., Maijama’a, R., Shaibu, H. U. and Muhammad, A. (2019) Crude Oil Price and Exchange Rate on Economic Growth: ARDL Approach, Open Access Library Journal, 6, e5930, 1-16. DOI: 10.4236/oalib.1105930.
[11]	Philips, P. C. B., and Perron, P. (1988), Testing for Unit Root in Time Series Regression, Biometrika, 75: 335-345.
[12]	Pesaran, M. H. and Pesaran, B. (1997), Microfit 4.0. Oxford, UK: Oxford University Press.

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APA Style

Rabiu Maijama’a, Kabiru Saidu Musa, Auwal Garba, Umar Muhammad Baba. (2020). Corona Virus Outbreak and the Global Energy Demand: A Case of People’s Republic of China. American Journal of Environmental and Resource Economics, 5(1), 10-13. https://doi.org/10.11648/j.ajere.20200501.12

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ACS Style

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. Am. J. Environ. Resour. Econ. 2020, 5(1), 10-13. doi: 10.11648/j.ajere.20200501.12

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AMA Style

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. Am J Environ Resour Econ. 2020;5(1):10-13. doi: 10.11648/j.ajere.20200501.12

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@article{10.11648/j.ajere.20200501.12,
  author = {Rabiu Maijama’a and Kabiru Saidu Musa and Auwal Garba and Umar Muhammad Baba},
  title = {Corona Virus Outbreak and the Global Energy Demand: A Case of People’s Republic of China},
  journal = {American Journal of Environmental and Resource Economics},
  volume = {5},
  number = {1},
  pages = {10-13},
  doi = {10.11648/j.ajere.20200501.12},
  url = {https://doi.org/10.11648/j.ajere.20200501.12},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ajere.20200501.12},
  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.},
 year = {2020}
}

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TY  - JOUR
T1  - Corona Virus Outbreak and the Global Energy Demand: A Case of People’s Republic of China
AU  - Rabiu Maijama’a
AU  - Kabiru Saidu Musa
AU  - Auwal Garba
AU  - Umar Muhammad Baba
Y1  - 2020/03/10
PY  - 2020
N1  - https://doi.org/10.11648/j.ajere.20200501.12
DO  - 10.11648/j.ajere.20200501.12
T2  - American Journal of Environmental and Resource Economics
JF  - American Journal of Environmental and Resource Economics
JO  - American Journal of Environmental and Resource Economics
SP  - 10
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PB  - Science Publishing Group
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AB  - 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.
VL  - 5
IS  - 1
ER  -

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Author Information

Rabiu Maijama’a

Department of Economics, Faculty of Social and Management Sciences, Bauchi State University Gadau, Yuli Campus, Bauchi, 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

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APA Style

Rabiu Maijama’a, Kabiru Saidu Musa, Auwal Garba, Umar Muhammad Baba. (2020). Corona Virus Outbreak and the Global Energy Demand: A Case of People’s Republic of China. American Journal of Environmental and Resource Economics, 5(1), 10-13. https://doi.org/10.11648/j.ajere.20200501.12

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ACS Style

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. Am. J. Environ. Resour. Econ. 2020, 5(1), 10-13. doi: 10.11648/j.ajere.20200501.12

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AMA Style

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. Am J Environ Resour Econ. 2020;5(1):10-13. doi: 10.11648/j.ajere.20200501.12

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@article{10.11648/j.ajere.20200501.12,
  author = {Rabiu Maijama’a and Kabiru Saidu Musa and Auwal Garba and Umar Muhammad Baba},
  title = {Corona Virus Outbreak and the Global Energy Demand: A Case of People’s Republic of China},
  journal = {American Journal of Environmental and Resource Economics},
  volume = {5},
  number = {1},
  pages = {10-13},
  doi = {10.11648/j.ajere.20200501.12},
  url = {https://doi.org/10.11648/j.ajere.20200501.12},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ajere.20200501.12},
  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.},
 year = {2020}
}

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TY  - JOUR
T1  - Corona Virus Outbreak and the Global Energy Demand: A Case of People’s Republic of China
AU  - Rabiu Maijama’a
AU  - Kabiru Saidu Musa
AU  - Auwal Garba
AU  - Umar Muhammad Baba
Y1  - 2020/03/10
PY  - 2020
N1  - https://doi.org/10.11648/j.ajere.20200501.12
DO  - 10.11648/j.ajere.20200501.12
T2  - American Journal of Environmental and Resource Economics
JF  - American Journal of Environmental and Resource Economics
JO  - American Journal of Environmental and Resource Economics
SP  - 10
EP  - 13
PB  - Science Publishing Group
SN  - 2578-787X
UR  - https://doi.org/10.11648/j.ajere.20200501.12
AB  - 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.
VL  - 5
IS  - 1
ER  -

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