Open Access Journal Article

The Effects of Artificial Intelligence on Oil Shocks: Evidence from a Wavelet-Based Quantile-on-Quantile Approach

by Pengchao He a,*  and  Nuan Zhao b
a
School of Management Science and Engineering, Nanjing University of Information Science and Technology, Nanjing, China
b
School of Marxism Studies, Nanjing University of Aeronautics and Astronautics, Nanjing, China
*
Author to whom correspondence should be addressed.
REA  2024 3(2):32; https://doi.org/10.58567/rea03020004
Received: 2 April 2024 / Accepted: 27 November 2024 / Published Online: 9 January 2025
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Abstract

This study examines the effects of artificial intelligence on oil shocks (supply, demand, and risk shocks) across different time scales and market conditions, using the wavelet-based quantile-on-quantile approach. The empirical results have discovered that in the short term, artificial intelligence exerts significant negative impacts on supply and risk shocks, with these adverse effects gradually diminishing over time. Notably, artificial intelligence begins to positively influence supply shock in the medium to long term. In contrast, demand shock is initially positively affected, but these benefits diminish over time. The outcomes gained from this study not only give policymakers valuable insights for developing more precise energy policies, but also provide investors with nuanced market perspectives and risk assessments.

Keywords: Artificial intelligence; Oil shocks; Wavelet analysis; Quantile-on-quantile approach;
Copyright: © 2025 by He and Zhao. This is an open-access article distributed under the terms of the Creative Commons Attribution License (CC BY) (Creative Commons Attribution 4.0 International License). The use, distribution or reproduction in other forums is permitted, provided the original author(s) or licensor are credited and that the original publication in this journal is cited, in accordance with accepted academic practice. No use, distribution or reproduction is permitted which does not comply with these terms.

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ACS Style
He, P.; Zhao, N. The Effects of Artificial Intelligence on Oil Shocks: Evidence from a Wavelet-Based Quantile-on-Quantile Approach. Review of Economic Assessment, 2024, 3, 32. https://doi.org/10.58567/rea03020004
AMA Style
He P, Zhao N. The Effects of Artificial Intelligence on Oil Shocks: Evidence from a Wavelet-Based Quantile-on-Quantile Approach. Review of Economic Assessment; 2024, 3(2):32. https://doi.org/10.58567/rea03020004
Chicago/Turabian Style
He, Pengchao; Zhao, Nuan 2024. "The Effects of Artificial Intelligence on Oil Shocks: Evidence from a Wavelet-Based Quantile-on-Quantile Approach" Review of Economic Assessment 3, no.2:32. https://doi.org/10.58567/rea03020004
APA style
He, P., & Zhao, N. (2024). The Effects of Artificial Intelligence on Oil Shocks: Evidence from a Wavelet-Based Quantile-on-Quantile Approach. Review of Economic Assessment, 3(2), 32. https://doi.org/10.58567/rea03020004

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