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Central bankers’ political discourse as a driver of clean energy markets

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  • Zheng, Yuqi
  • Lucey, Brian

Abstract

We investigate how political language in central bank governors’ speeches affects clean energy market dynamics in both the Chinese and U.S. markets. Using advanced textual analysis (poldis) and a novel lexical matching algorithm, we measure key dimensions of policy discourse—authenticity, urgency, timing, intensity, and commitment. These speech-based indicators are integrated with traditional market and media variables through Extreme Bounds Analysis (EBA) and SHAP value interpretability. We find that speeches with stronger policy commitment and intensity are positively correlated with clean energy stock performance. Conversely, high urgency and shorter timing intervals often predict weaker market outcomes, potentially signaling perceived risks or instability to investors. Our results highlight the significant but nuanced role of central bank communication in shaping investor sentiment within sustainable finance markets. This research therefore contributes to financial economics, behavioral finance, and policy communication studies by quantifying how political discourse can drive asset pricing in emerging sectors like clean energy.

Suggested Citation

  • Zheng, Yuqi & Lucey, Brian, 2025. "Central bankers’ political discourse as a driver of clean energy markets," Research in International Business and Finance, Elsevier, vol. 80(C).
    • Handle: RePEc:eee:riibaf:v:80:y:2025:i:c:s0275531925003824
    DOI: 10.1016/j.ribaf.2025.103126
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    References listed on IDEAS

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    JEL classification:

    • C55 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Large Data Sets: Modeling and Analysis
    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
    • Q40 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - General
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy

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