Is There a Connection Between the Sino-US Tensions and Global Energy Market Uncertainty? Statistical Evidence From the GETS-VAR

We investigate the connection between Sino-US tensions and global energy market uncertainty using the GETS-VAR methodology for the period Jan 2001 to Oct 2022. The results indicate that increased tensions significantly boost energy uncertainty, with reciprocal effects intensifying geopolitical tensions. The investigation emphasizes the more pronounced influence of Sino-US tensions on energy uncertainty and accentuates the importance of economic policy uncertainty and energy prices. Suggested policy actions include improving energy management, expanding energy source variety, encouraging diplomatic interactions, and stimulating innovation to stabilize the global energy market.