Exploring the Relationship between Clean Energy Indices and Oil Prices
A Ten-Day Window approach
Bibliographic Data
| ID | 22357671 |
|---|---|
| Authors | Rui Dias (0000-0002-6138-3098, Instituto Politecnico de Setubal), Rosa Galvão (0000-0001-8282-6604, Instituto Politecnico de Setubal), Sandra Cruz (0000-0001-5909-3684, Instituto Politécnico da Lusofonia), Mohammad Irfan (0000-0002-4956-1170, Christ University), Nuno Teixeira (0000-0001-7906-7731, Instituto Politecnico de Setubal), Sidalina Gonçalves (0000-0002-4256-9479, Instituto Politecnico de Setubal) |
| Year | 2024 |
| Volume | 3 |
| Issue | 4 |
| Pages | 1462-1472 |
| Publication date | 2024-08-12 |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | Journal of Ecohumanism (JOURNAL) |
| Journal identifiers | ISSN: 2752-6798 • E-ISSN: 2752-6801 |
| Publisher | Creative Publishing House (PUBLISHER • GB) |
| DOI | 10.62754/joe.v3i4.3675 |
| OpenAlex | W4401527010 |
| Language | EN |
| References cited | 4 |
This paper aims to assess the comovements between clean energy indices, namely the Clean Energy Fuels (CLNE), Nasdaq Clean Edge Green Energy (CELS), S&P Global Clean Energy (SPGTCLEN), TISDALE Clean Energy (TCEC.CN), Wilderhill (ECO), West Texas Intermediate (WTI) stock indices, over the period from 1 January 2018 to 23 November 2023. We used 10-day windows to analyse the duration and nature of the shocks. Granger causality tests revealed that 20 of the 30 possible pairs showed significant movements, with the WTI influencing all the clean energy indices, highlighting its global importance. CELS also showed a robust influence on all pairs, while SPGTCLEN had a significant but less far-reaching influence. The CLNE and ECO indices showed limited influences, suggesting the potential for diversification, the TCEC.CN proved to be independent and a determining factor for portfolio diversification. The Impulse Response Functions (IRF) confirmed significant movements between CELS, SPGTCLEN and WTI, reflecting the market's response to policies and adjustments in expectations. Fluctuations in oil prices substantially affect clean energy indices, highlighting the interconnectedness and volatility of these markets. In conclusion, these results indicate that despite the growth of clean energy, the sector is still influenced by fluctuations in the fossil fuel market
Biology · Business · Clean energy · Econometrics · Economics · Financial economics · Fossil fuel · Geography · Granger causality · Monetary economics · Natural resource economics · Portfolio · West Texas Intermediate · Energy, Environment, and Transportation Policies · Energy, Environment, Economic Growth · Market Dynamics and Volatility
| Highly cited | No |
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