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Green bonds and clean energy stocks: Safe havens against global uncertainties? A wavelet quantile-based examination

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  • Aloui, Chaker
  • Mejri, Sami
  • Ben Hamida, Hela
  • Yildirim, Ramazan

Abstract

The renewable energy sector has seen rapid investment growth over the last decade, with Green Bonds (GB) and Clean Energy Stocks (CLE) emerging as critical components of sustainable finance. Using daily data from 2013 to 2023, this study investigates the diverse roles of GB and CLE as potential safe havens under Geopolitical Risks (GEO) and Economic Policy Uncertainty (ECU). Applying an advanced Wavelet Quantile Regression (WQR) approach, we assess their effectiveness across different time horizons and risk conditions. The findings reveal that GB consistently offer stronger protection against economic risks, particularly in the short to mid-term, while CLE are more effective in shielding against geopolitical risks. Over longer periods, GB maintain their safe haven status, while CLE’s protective capabilities diminish. The results also highlight that GB and CLE behave differently across quantiles, with GB showing stability across extreme market conditions, making it a more reliable hedge overall. This study offers valuable policy insights for key stakeholders. Policymakers are encouraged to integrate GB and CLE into sustainable finance strategies, investors can mitigate risk by blending these assets, and portfolio managers should adjust allocations dynamically based on evolving market conditions. The results underscore the importance of green assets as hedges in times of global uncertainty, contributing to the growing literature on sustainable finance.

Suggested Citation

  • Aloui, Chaker & Mejri, Sami & Ben Hamida, Hela & Yildirim, Ramazan, 2025. "Green bonds and clean energy stocks: Safe havens against global uncertainties? A wavelet quantile-based examination," The North American Journal of Economics and Finance, Elsevier, vol. 76(C).
    • Handle: RePEc:eee:ecofin:v:76:y:2025:i:c:s1062940824002353
    DOI: 10.1016/j.najef.2024.102310
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    Cited by:

    1. Juan D. Saldarriaga-Loaiza & Johnatan M. Rodríguez-Serna & Jesús M. López-Lezama & Nicolás Muñoz-Galeano & Sergio D. Saldarriaga-Zuluaga, 2025. "A Metaheuristic Framework for Cost-Effective Renewable Energy Planning: Integrating Green Bonds and Fiscal Incentives," Energies, MDPI, vol. 18(10), pages 1-23, May.

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    More about this item

    Keywords

    Safe haven; Geopolitical risk; Green bonds; Clean energy stocks; Economic uncertainty; Quantile wavelets;
    All these keywords.

    JEL classification:

    • C10 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - General
    • C50 - Mathematical and Quantitative Methods - - Econometric Modeling - - - General
    • C58 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Financial Econometrics
    • E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy
    • F39 - International Economics - - International Finance - - - Other
    • G01 - Financial Economics - - General - - - Financial Crises
    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets

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