Browsing Economics and Finance Student Work by Title
Now showing items 2-3 of 3
Effect of electric vehicle sales on the price of oilThe primary goal of this study is to observe the relationship between the fluctuation of the oil price and the increasing number of sales of electric vehicles based on data from 20 developed and developing countries. As the number of electric vehicles on the market is growing, the demand in the world oil market is declining slightly and, as a result, oil prices are also declining due to several factors. Consumer theory tells us that oil prices could decline due to a rise in the number of electric vehicles sold. Electric vehicles can minimize carbon dioxide emissions and pollutants even when considering indirect emissions from power production and battery generation. Soon, the world may start banning regular gasoline vehicles as a part of the solution to climate change which has already started in Norway. The result shows us there is a slight negative relationship between the oil price and sales of electric vehicles. I can expect that the sales of electric vehicles will keep increasing and after a certain time, it will become a perfect substitute for regular gasoline vehicles.
The effects of short selling on market efficiencyUsing monthly data instead of daily data, I investigate the dynamic relationship between the short selling activity, market return, illiquidity and volatility of the NASDAQ 100 from February 2000 to December 2020. The findings suggest that high level of short selling can lower illiquidity and volatility. This relationship weakens during the financial crisis of 2008. The finding also suggests that the idea that short selling destabilizes the market is unfounded.