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Climate risk and the nexus of clean energy and technology stocks

Author

Listed:
  • Elie Bouri

    (Lebanese American University
    Kyung Hee University Seoul)

  • Tom L. Dudda

    (Technische Universität Dresden)

  • Lavinia Rognone

    (The University of Manchester
    University of Edinburgh)

  • Thomas Walther

    (Technische Universität Dresden
    Utrecht University)

Abstract

We examine the impact of climate risks on the nexus of clean energy and technology stocks using a time-varying correlation model. We find that physical and transition climate risks are positively associated with the long-term correlation between clean energy and technology stock indices, whereas the effect of transition risk is more robust to different sample periods and alternative stock indices. On the contrary, the short-term correlation tends to decrease after shocks to physical risk, since clean energy stocks react more strongly to physical risk shocks than technology stocks.

Suggested Citation

  • Elie Bouri & Tom L. Dudda & Lavinia Rognone & Thomas Walther, 2025. "Climate risk and the nexus of clean energy and technology stocks," Annals of Operations Research, Springer, vol. 347(1), pages 445-469, April.
    • Handle: RePEc:spr:annopr:v:347:y:2025:i:1:d:10.1007_s10479-023-05487-z
    DOI: 10.1007/s10479-023-05487-z
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    Cited by:

    1. Abeeb Olaniran & Elie Bouri & Rangan Gupta, 2025. "Multi-Moment and Multilayer Analysis of Connectedness among Clean, Brown, and Technology ETFs: The Role of Climate Risk," Working Papers 202519, University of Pretoria, Department of Economics.

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    More about this item

    Keywords

    Climate risk; Clean energy; Technology stocks; Energy transition;
    All these keywords.

    JEL classification:

    • G10 - Financial Economics - - General Financial Markets - - - General (includes Measurement and Data)
    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • Q55 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Technological Innovation

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