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Stock prices of clean energy firms, oil and carbon markets: A vector autoregressive analysis

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  • Kumar, Surender
  • Managi, Shunsuke
  • Matsuda, Akimi

Abstract

Recent discussions of energy security and climate change have attracted significant attention to clean energy. We hypothesize that rising prices of conventional energy and/or placement of a price on carbon emissions would encourage investments in clean energy firms. The data from three clean energy indices show that oil prices and technology stock prices separately affect the stock prices of clean energy firms. However, the data fail to demonstrate a significant relationship between carbon prices and the stock prices of the firms.

Suggested Citation

  • Kumar, Surender & Managi, Shunsuke & Matsuda, Akimi, 2012. "Stock prices of clean energy firms, oil and carbon markets: A vector autoregressive analysis," Energy Economics, Elsevier, vol. 34(1), pages 215-226.
  • Handle: RePEc:eee:eneeco:v:34:y:2012:i:1:p:215-226
    DOI: 10.1016/j.eneco.2011.03.002
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    References listed on IDEAS

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    Keywords

    Clean energy; Stock prices; Oil price; Carbon price;

    JEL classification:

    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy

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