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Quantile granger causality between clean energy and tourism stock indices: Evidence from regional markets

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  • Ozge Demirkale
  • Naime Irem Duran

Abstract

As two pillars of the green transition, clean energy and tourism have gained growing strategic prominence in the landscape of sustainable finance, warranting a deeper investigation into their financial interdependencies. However, empirical research exploring their interaction in financial markets, particularly from a regional perspective, remains relatively limited. This study contributes to that objective by examining the predictive relationships between the WILDERHILL Clean Energy Index and tourism indices from the United States, Europe, China, and Australia. Using monthly data from 2010 to 2023, the analysis applies quantile Granger causality and wavelet coherence methods to capture asymmetric and time-varying dynamics. Additionally, a structural VAR model is used to assess region-specific responses to clean energy shocks. While conventional Granger tests do not indicate significant linkages, quantile-based approaches uncover heterogeneous connections that emerge under extreme market conditions. The findings reveal increasing co-movement between clean energy and tourism sectors and emphasize the importance of distribution-sensitive and regionally contextualized approaches in guiding investment and policy-making strategies.

Suggested Citation

  • Ozge Demirkale & Naime Irem Duran, 2025. "Quantile granger causality between clean energy and tourism stock indices: Evidence from regional markets," PLOS ONE, Public Library of Science, vol. 20(6), pages 1-29, June.
  • Handle: RePEc:plo:pone00:0326256
    DOI: 10.1371/journal.pone.0326256
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    References listed on IDEAS

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    1. Scott, Daniel & Hall, C. Michael & Gössling, Stefan, 2019. "Global tourism vulnerability to climate change," Annals of Tourism Research, Elsevier, vol. 77(C), pages 49-61.
    2. Pástor, Ľuboš & Stambaugh, Robert F. & Taylor, Lucian A., 2022. "Dissecting green returns," Journal of Financial Economics, Elsevier, vol. 146(2), pages 403-424.
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