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The role of financial stress, oil, gold and natural gas prices on clean energy stocks: Global evidence from extreme quantile approach

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  • Fu, Zheng
  • Chen, Zhiguo
  • Sharif, Arshian
  • Razi, Ummara

Abstract

Sustainable economic growth is the prime concern of each country without compromising environmental sustainability. Therefore investors seek the opportunities such as investment in clean energy stocks having significant social, economic, and environmental benefits for the society. Existing studies have explored various macroeconomic factors that deeply influenced the performance of clean energy stock. However, none of the studies has examined the nexus of financial stress, commodity price volatility (Oil, natural gas, gold), and clean energy stock from a global perspective. The study fills the gap by exploring the dynamic relationship among the study variables and employs the advanced methodology of “The quantile autoregressive distributed lag "(QARDL) approach from January 1, 2008, to April 30, 2021. The empirical findings of the study suggest that increased financial stress index and oil & gold prices significantly depress the performance of clean energy stocks in the long-run and short-run, whereas the natural gas has a positive influence on the clean energy stock only in the long run while in the short-run it has no significant influence. The study significantly provides a clear picture of these macroeconomic variables' interdependencies in all market conditions based on the empirical outcomes. This will provide greater investment opportunities for investors and helps the policymakers to establish better policies and strategies to boost global clean energy stock performance.

Suggested Citation

  • Fu, Zheng & Chen, Zhiguo & Sharif, Arshian & Razi, Ummara, 2022. "The role of financial stress, oil, gold and natural gas prices on clean energy stocks: Global evidence from extreme quantile approach," Resources Policy, Elsevier, vol. 78(C).
    • Handle: RePEc:eee:jrpoli:v:78:y:2022:i:c:s0301420722003063
    DOI: 10.1016/j.resourpol.2022.102860
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