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Price fairness: Clean energy stocks and the overall market

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  • Choi, Gahyun
  • Park, Kwangyeol
  • Yi, Eojin
  • Ahn, Kwangwon

Abstract

This study analyzes the current status and potential of clean energy stocks compared with the overall stock market index, particularly in terms of market efficiency and information flow. We find that despite its low liquidity, the market for clean energy stocks is weak-form efficient and exhibits a significant information outflow toward the market index. Considering the short run integration between the two markets and the recent growth in clean energy investment, we conclude that the clean energy stock market is reaching parity in terms of price fairness and information discovery. Our findings suggest that clean energy stocks can be used as a tool to monitor changes in eco-friendly energy policies for various stakeholders.

Suggested Citation

  • Choi, Gahyun & Park, Kwangyeol & Yi, Eojin & Ahn, Kwangwon, 2023. "Price fairness: Clean energy stocks and the overall market," Chaos, Solitons & Fractals, Elsevier, vol. 168(C).
    • Handle: RePEc:eee:chsofr:v:168:y:2023:i:c:s0960077922012280
    DOI: 10.1016/j.chaos.2022.113049
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