COVID-19, clean energy stock market, interest rate, oil prices, volatility index, geopolitical risk nexus: evidence from quantile regression
Purpose – The outbreak and the spreading of the COVID-19 pandemic have impacted the global financial sector, including the alternative clean and renewable energy sector. This paper aims to assess the impact of the pandemic, COVID-19 on the stock market indices of the clean energy sector using quanti...
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| Format: | Article |
| Language: | English |
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Emerald Publishing
2022-11-01
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| Series: | Journal of Economics and Development |
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| Online Access: | https://www.emerald.com/insight/content/doi/10.1108/JED-04-2022-0073/full/pdf |
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| author | Sudeshna Ghosh |
| author_facet | Sudeshna Ghosh |
| author_sort | Sudeshna Ghosh |
| collection | DOAJ |
| description | Purpose – The outbreak and the spreading of the COVID-19 pandemic have impacted the global financial sector, including the alternative clean and renewable energy sector. This paper aims to assess the impact of the pandemic, COVID-19 on the stock market indices of the clean energy sector using quantile regression methods. Design/methodology/approach – This study utilized daily data sets on the four major categories of stocks: (1) Morgan Stanley Capital International Global Alternative Energy Index, (2) WilderHill Clean Energy Index, (3) Renewable Energy Industrial Index (RENIXX) and (4) the S&P 500 Global Clean Index. The study adopts a multifactor capital asset pricing model. Findings – Clean and alternative energy stocks are powerful instruments for diversification. However, the impact of the volatility index induced by infectious disease is negative and significant across quantiles. Practical implications – For investors and policymakers, considering how the uncertainty caused by COVID-19 and the geopolitical index influences renewable energy markets is of great practical importance. For investors, it throws insights into portfolio diversification. For policy makers, it helps to devise strategies to reboot the economy along the lines of the deployment of renewables. This study sheds light on a global green-energy transition and has practical implications for renewable energy resilience in post-pandemic times. Originality/value – This paper can be considered as a pioneer that explores the nexus between oil prices, interest rates, volatility index, and geopolitical risk upon the stock indices of clean and alternative sources of (renewable) energy in the COVID-19 pandemic situation. The results have important insights into the area of energy and policy decision-making. Additionally, the paper's novelty lies in using the explanatory variables associated with the Covid 19 pandemic. |
| first_indexed | 2024-03-13T01:40:42Z |
| format | Article |
| id | doaj.art-5917602240044ec8a1077b21000638d0 |
| institution | Directory Open Access Journal |
| issn | 1859-0020 2632-5330 |
| language | English |
| last_indexed | 2024-03-13T01:40:42Z |
| publishDate | 2022-11-01 |
| publisher | Emerald Publishing |
| record_format | Article |
| series | Journal of Economics and Development |
| spelling | doaj.art-5917602240044ec8a1077b21000638d02023-07-03T14:07:12ZengEmerald PublishingJournal of Economics and Development1859-00202632-53302022-11-0124432934410.1108/JED-04-2022-0073COVID-19, clean energy stock market, interest rate, oil prices, volatility index, geopolitical risk nexus: evidence from quantile regressionSudeshna Ghosh0Department of Economics, Scottish Church College, Kolkata, IndiaPurpose – The outbreak and the spreading of the COVID-19 pandemic have impacted the global financial sector, including the alternative clean and renewable energy sector. This paper aims to assess the impact of the pandemic, COVID-19 on the stock market indices of the clean energy sector using quantile regression methods. Design/methodology/approach – This study utilized daily data sets on the four major categories of stocks: (1) Morgan Stanley Capital International Global Alternative Energy Index, (2) WilderHill Clean Energy Index, (3) Renewable Energy Industrial Index (RENIXX) and (4) the S&P 500 Global Clean Index. The study adopts a multifactor capital asset pricing model. Findings – Clean and alternative energy stocks are powerful instruments for diversification. However, the impact of the volatility index induced by infectious disease is negative and significant across quantiles. Practical implications – For investors and policymakers, considering how the uncertainty caused by COVID-19 and the geopolitical index influences renewable energy markets is of great practical importance. For investors, it throws insights into portfolio diversification. For policy makers, it helps to devise strategies to reboot the economy along the lines of the deployment of renewables. This study sheds light on a global green-energy transition and has practical implications for renewable energy resilience in post-pandemic times. Originality/value – This paper can be considered as a pioneer that explores the nexus between oil prices, interest rates, volatility index, and geopolitical risk upon the stock indices of clean and alternative sources of (renewable) energy in the COVID-19 pandemic situation. The results have important insights into the area of energy and policy decision-making. Additionally, the paper's novelty lies in using the explanatory variables associated with the Covid 19 pandemic.https://www.emerald.com/insight/content/doi/10.1108/JED-04-2022-0073/full/pdfClean energyOil pricesGeopolitical indexCOVID-19Quantile regression |
| spellingShingle | Sudeshna Ghosh COVID-19, clean energy stock market, interest rate, oil prices, volatility index, geopolitical risk nexus: evidence from quantile regression Journal of Economics and Development Clean energy Oil prices Geopolitical index COVID-19 Quantile regression |
| title | COVID-19, clean energy stock market, interest rate, oil prices, volatility index, geopolitical risk nexus: evidence from quantile regression |
| title_full | COVID-19, clean energy stock market, interest rate, oil prices, volatility index, geopolitical risk nexus: evidence from quantile regression |
| title_fullStr | COVID-19, clean energy stock market, interest rate, oil prices, volatility index, geopolitical risk nexus: evidence from quantile regression |
| title_full_unstemmed | COVID-19, clean energy stock market, interest rate, oil prices, volatility index, geopolitical risk nexus: evidence from quantile regression |
| title_short | COVID-19, clean energy stock market, interest rate, oil prices, volatility index, geopolitical risk nexus: evidence from quantile regression |
| title_sort | covid 19 clean energy stock market interest rate oil prices volatility index geopolitical risk nexus evidence from quantile regression |
| topic | Clean energy Oil prices Geopolitical index COVID-19 Quantile regression |
| url | https://www.emerald.com/insight/content/doi/10.1108/JED-04-2022-0073/full/pdf |
| work_keys_str_mv | AT sudeshnaghosh covid19cleanenergystockmarketinterestrateoilpricesvolatilityindexgeopoliticalrisknexusevidencefromquantileregression |