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Clean Energy Markets: Responses to Emerging Risks and Investor Behaviour

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  • Khaled Mokni
  • Sami Ben Jabeur
  • Hela Nammouri
  • Foued Saâdaoui

Abstract

The financial landscape continues to evolve in response to novel risks such as climate change and increasing environmental, prompting investors and the environment to adapt to an uncertain landscape. This study aims to provide insights into how investors and clean energy markets respond to emerging threats in the age of novel risks. By analysing the spillover effects and connectedness between the clean energy markets, investor sentiment, economic policy uncertainty, geopolitical risk, and climate change concerns, we seek to identify investor decision‐making patterns and reactions to these risk factors. The analysis uses a time‐varying parameter vector autoregression (TVP‐VAR) approach based on data collected from 20 September 2013 to 30 September 2022. Our findings will contribute to a better understanding of how investors and environmental markets can promote sustainable growth while addressing the challenges posed by novel risks, offering valuable guidance for regulators, policymakers, and industry practitioners.

Suggested Citation

  • Khaled Mokni & Sami Ben Jabeur & Hela Nammouri & Foued Saâdaoui, 2025. "Clean Energy Markets: Responses to Emerging Risks and Investor Behaviour," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 30(4), pages 3535-3552, October.
    • Handle: RePEc:wly:ijfiec:v:30:y:2025:i:4:p:3535-3552
    DOI: 10.1002/ijfe.3078
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    1. Ahmed, Walid M.A. & Sleem, Mohamed A.E., 2025. "On the dynamic interdependence between risk factors and clean energy stock prices," Resources Policy, Elsevier, vol. 105(C).

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