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Dynamic correlation between the green hydrogen market and commodities, stock markets, oil, and Bitcoin: A DCC approach

Author

Listed:
  • Eder JAL Pereira

    (Instituto Federal do Maranhão - Campus Bacabal)

Abstract

This study analyzes the dynamic correlation between the green hydrogen market and financial assets (iShares MSCI World, Bitcoin, commodities, oil futures) using Engle's (2002) Dynamic Conditional Correlation (DCC) model, with data from August 2021 to February 2024. Findings show strong correlations, peaking at 80%, between green hydrogen and global stock and oil markets, and a 50% correlation with Bitcoin, notably after Russia's invasion of Ukraine. These results inform investors and policymakers on sustainability, ESG compliance, and diversification with green assets.

Suggested Citation

  • Eder JAL Pereira, 2025. "Dynamic correlation between the green hydrogen market and commodities, stock markets, oil, and Bitcoin: A DCC approach," Economics Bulletin, AccessEcon, vol. 45(2), pages 1060-1073.
    • Handle: RePEc:ebl:ecbull:eb-25-00189
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    References listed on IDEAS

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    JEL classification:

    • Q4 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy
    • Q2 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation

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