Dynamic connectedness among climate change index, green financial assets and renewable energy markets: Novel evidence from sustainable development perspective

Balsalobre Lorente D., Mohammed K. S., Cifuentes-Faura J., Shahzad U.

Renewable Energy, vol.204, pp.94-105, 2023 (SCI-Expanded, Scopus) identifier

  • Nəşrin Növü: Article / Article
  • Cild: 204
  • Nəşr tarixi: 2023
  • Doi nömrəsi: 10.1016/j.renene.2022.12.085
  • jurnalın adı: Renewable Energy
  • Jurnalın baxıldığı indekslər: Science Citation Index Expanded (SCI-EXPANDED), Scopus, Academic Search Premier, PASCAL, Aerospace Database, Aquatic Science & Fisheries Abstracts (ASFA), CAB Abstracts, Communication Abstracts, Compendex, Environment Index, Geobase, Greenfile, Index Islamicus, INSPEC, Pollution Abstracts, Public Affairs Index, Veterinary Science Database, DIALNET, Civil Engineering Abstracts
  • Səhifə sayı: pp.94-105
  • Açar sözlər: Clean energy market, Climate change, Green finance, Renewable energy, Sustainable development
  • Açıq Arxiv Kolleksiyası: Məqalə
  • Adres: Bəli

Qısa məlumat

This paper investigates the connectedness among the climate change index, green financial assets, renewable energy markets, and geopolitical risk index from June 1, 2012 to June 13, 2022, using Quantile Vector Autoregressive (QVAR) and wavelet coherence (WC). The Total connectedness index (TCI) varies as long as the highest TCI originates in the upper quantile. We also note that the higher TCI decreases after the second wave of COVID-19 and increases during the first 100 days of the Russia-Ukraine conflict. Moreover, the results show that Geopolitical risk (GPR) is a net transmitter of the climate change index during the Russian invasion of Ukraine. The green bond and clean energy markets are negatively connected to the GPR at extreme 10 th and 90 th quantiles. The wavelet coherence confirms the QVAR results that the climate change market can be a safe haven against GPR during the Russian invasion. The climate change index, green financial assets, and clean energy are strong influencers in the financial markets and are vital to international peace, reducing geopolitical risk. The study reports a few novel conclusions and implications from a sustainable development perspective.